Hi! 1st Post; 40 Questions For Ya

[Justin Dyer]

Hi, Justin here. I will be purchasing my first property 1st quarter '20. Have some CC debt that needs to be cleared in the next few months before I am in my comfort zone to purchase. I understand I have options available to speed up the process, but I feel better starting with some cash instead of purely leveraged funds. I've watched around 100+ hours of BP, GaryV, and even Morris Inv., and have learned a great deal. Enough about me, here are my questions!

1. How do you vet contractors?

2. Anyone got a link to 203K discussions/experience?

3. Local DMV area (DC/MD/VA) people: what areas are you investing in?

4. Where are the meets for local DMV investors?

5. Do you brand? If so, at which point?

6. Does anyone have a link to their first buy, like a roadmap?

7. Insurance companies: know of any good ones that set up accounts without actually having any money in there so they are ready to go when you need them?

8. What is the example/definition of a good deal in the DMV area that you are buying in?

9. What is the average length of a tenant in your area?

10. How long have you held on to your 1st investment home?

11. Do you have multiple LLCs set up to protect your investment properties? If so, do you have an average amount of units per LLC?

12. What was your first rehab budget? And how much did you go over?

13. How long did it take you to buy your 2nd property after doing your first? 

14. How much better was your experience with your 2nd property?

15. What were the most expensive unforeseen expenses you've been hit by?

16. Fannie: I buy 4 houses, wife buys 4 houses; does that affect purchasing houses with an LLC in either of our names?

17. Insurance. If I invest in scandalous areas, what options do I have against material theft and vandalism? Cost?

18. What is the best method to put your own money into your business, assuming LLC? Cash? 401K loans?

19. Is it better to buy your first property in your name/spouse's name, or your company?

20. How to your choose lenders, specifically banks/CUs? (not looking at hard money yet)

21. When should a beginning real estate investor meet/hire an accountant?

22. What are the differences between cash purchase or financed? I realize you can avoid realtor fees if you buy direct, but is there something else not as obvious?

23. When you buy from the courthouse steps, what are the most important things you should know? 

24. Can someone go over utilities and the cons of renter-based payment of utilities?

25. What is YOUR recommended cash reserves for an investor purchasing a house that needs an estimated $30K rehab, bought for $25K? (Also, assume I totally whiffed on the $30K rehab number and it ends up being $__K...)

26. Got a bad deal? Rent, or take the L and punt ASAP? I feel like I would be better off punting...

27. Hidden costs. What? Where? Why? HOW? Who?

28. What taxes related to the property do I need to be aware of?

29. Would you recommend flipping an IRA into a self-managed IRA to purchase the 1st, maybe even 2nd property? Why?

30. How much of a percentage is it a must for you to lay eyes on that first property?

31. How much value do you put on being very involved in the renovation on the first property? Is it invaluable experience, or would you just sub it out and keep on keepin' on?

32. What are your most recommended starter finance options? (Current mortgage is a VA loan that I could refinance to conventional)

33. Did you keep too much equity in your first investment properties that, NOW, you feel you should have pulled out and used for the next property?

34. Do you ever pull money out of CAPEX to fund new purchases? If so, do you wait until your account can handle a certain amount while leaving a cushion?

35. How do you pay contractors?

36. What are the most common red flags when interviewing contractors?

37. How do you find a good home inspector?

38. What is the average cost of a home inspection, and for what level of detail?

39. Has anyone made a list/chart/whatever of states that are good or bad investment states? CA being worse than TX for landlords, etc. Link?

40. Are icemakers a bad idea for a rental? I feel it is a selling point, but I also have a nagging liability worry...