All Forum Posts by: JT Spangler

Well, transformers are fused, so technically a transformer rarely 'blows'. Not sure what exactly you're showing in that picture, but it's very likely that an outside disconnect is required by code anyway.

 It depends entirely on your area. 2% is obviously better than 1%, and 3% is even better still! But in Nashville, where I live, 2% is really tough without being a slumlord or buying a crazy good deal that you marketed yourself.

To me, more important than getting 2% properties is buying in an area I wouldn't mind living in, cash flow of $150/door minimum, and cash on cash returns of 15% minimum.

You also paid all cash, which means you didn't finance, which means your cash flow is maximized, but your cash on cash return is minimized (you didn't use anyone else's money, aka you're way under-leveraged). 

You can learn all that stuff as you go, but for now CONGRATS on buying a property that cash flows and is fully rented! :)

@Roy N.: that's my plan. It is nailed down with ring shanks, so I'm gonna cut some long strips with the circular saw set to a very careful depth, and then pry up. 

If it doesn't come up easily, I have a day laborer set up to come in and take over. 

@Jeremy Tillotson: thanks a lot for the info. Certainly something to be aware of. I have workman's comp, but I need to verify with my policy and my homeowners that stuff like that is covered, because I often hire friends to come in and demo/hang drywall/etc.

@Roy N.

Wow! That's a great price and a good looking door. Quite a bit more than the 80 bucks I spent on my homemade, but a great price for a rehab/flip.

I think you should definitely reconsider having another roommate share your space. If you want to build a real estate business, you need to maximize your cash on hand and minimize your overhead: having a roommate does both. 

Also, if your condo has appreciated, consider selling it and using the profits to house hack your way into a duplex or triplex. You'll get great terms as an owner occupant, live for free, and once you've lived there a year you can move out and have a nice cashflowing property.

Yeah, @Eric Bowlin, I'm already in contact with a guy I found on craigslist for that very purpose. 

So, as I suspected (but hoped I was wrong on), the kitchen/hallway/bathroom/laundry in my new buy and hold property have linoleum on 1/4" plywood underlayment, underneath which is another layer of linoleum, underneath which I assume is the original subfloor.

Initially I was just gonna lay vinyl wood plank on top of it, but I can't just keep stacking flooring on flooring. So I really should pull up everything down to the original subfloor. Anyone have any tips for removing old linoleum on a plywood underlayment like this? Or is it just go to work with the prybar and skilsaw set to the proper depth? 

 Roy, do you have a source you like for those? I did a homebuilt one for my house, and it looks fantastic but it way too labor intensive for a rental. All the kits I've seen are in the 400ish range, which is too expensive for a rental. 

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@David Engle: I was able to replace 24" bifold doors with a 24" standard door (that I bought at habitat restore for 6 dollars). It took some labor to install hinges and hardware and mortise the lock, but it looks way better.

Once you've done some (most) of what's been outlined so far, I'd say the next two steps are (1) determine your goals and preferred strategy, and (2) start researching your local market.

The VA loan is an unbelievable advantage every military investor should be using, IMO. You can do 100% financing and can acquire small MFR, so long as you occupy one unit. I literally think it's the best loan product in the entire country.

And, forgive me if I'm overstepping, but I wanted to make a comment on your mindset. I saw a few "I can't" "Well, yeah, but..." "That doesn't really seem to be available where I live". Personally, I'd like to challenge you to eliminate those from your internal dialogue. Instead of saying why things won't work for you, try to brainstorm ways you could make them work, even if it's just an intellectual exercise.

If renting rooms isn't a good fit since you're a family man, how about buying a single family home with an accessory dwelling? Garage apt, finished walkout basement, finished attic with separate entrance? Don't see any listed, then start looking for a place where you can finish it. If you haven't seen any good MFR, figure out why not -- zoning issue, construction costs, population density?

Get your numbers down pat -- spend time on craigslist seeing how much houses rent for, and then go to realtor.com and figure out if any single families in your area will cashflow (not to buy, because you don't have the money down right now; just as an exercise to build your deal-recognition muscle).

When you find the MFR in your area, call the landlords and PMs and ask if you can take them for coffee. Learn about your market (demographics, property taxes, rehab/maintenance costs, pitfalls and code enforcement curiosities).

Good luck, and keep us posted!