All Forum Posts by: Aaron Millis

@Karl Denton  @Chris Seveney Okay got it. So I'm guessing that when doing "Subject To" you don't transfer ownership/or add the buyer to the deed? My buyer is wanting to be added but I assumed that would trigger the bank finding out. Also it's a VA loan.

Thanks

Hi BP,

I've got a rental that I renting/selling to someone on a rent to own agreement- the home is still in my name.

We are at the point where they are about ready to buy the home outright. However I do have a good interest rate on this home (2.375%) on a mortgage with 28 years left. They payment would be better than one they would get on a new loan.

We would like for ownership to be transferred to them while keeping the same mortgage/interest rate. I think I've heard that banks don't typically let this fly, and that the "due on sale clause" can be used if you transfer ownership.

If that's correct, are there other options to make this work?  They have been great to work with and I'd like to help them out if possible.

Thanks!

Investment Info:

Single-family residence fix & flip investment in Montgomery.

Purchase price: $72,500
Cash invested: $28,000
Sale price: $132,000

This was a live in flip that I just recently sold. Its the fastest renovation I've done yet and that's only because I hired 99% of it out vs doing the work myself (thank God). I used cash from a previous flip to fund the renovation. This is my first time using all of my own money for a renovation. I usually like using other peoples money, but it sure is a lot easier (and faster) when you have cash! Hopefully I can start keeping houses like this as rentals, but for now this was a good flip.

What made you interested in investing in this type of deal?

Bigger Pockets in general... Podcasts mostly

How did you find this deal and how did you negotiate it?

another agent I work with posted about it in our agent forum. And I just recently became available to buy again so it worked out great.

How did you finance this deal?

Fannie Mae

How did you add value to the deal?

New floors in the entire house/ Updated the bathrooms and kitchen/ recessed lighting/ new blinds and outlets/ etc

What was the outcome?

I made just over $22,000!

Lessons learned? Challenges?

If I buy a house with galvanized pipes again i'm just going to plan on having to replace/update them.

Investment Info:

Condo fix & flip investment.

Purchase price: $127,000
Cash invested: $3,000
Sale price: $180,000

This was a house hack I bought in 2017. I put down about 20K which was pretty much my life savings at that point. I rented it out completely after 1 year of living there. After 3.5 years (and a good bit of appreciation) I sold it because I needed the money to use for other deals. At closing I walked out with a check for $70K. So for my first deal I got to live for free- collect easy cash flow-and collect about a $50K profit that I did little to earn. Pretty cool when it works out that way!

What made you interested in investing in this type of deal?

The book on Rental Property Investing

How did you find this deal and how did you negotiate it?

right of the mls. Paid exactly what they asked for it.

How did you finance this deal?

conventional financing.

How did you add value to the deal?

Painted some walls and put new flooring in a few bedrooms.

What was the outcome?

The rents were great and the area appreciated alot over the course of a few years. Excellent outcome.

Lessons learned? Challenges?

Renting by the room can be incredibly profitable.

Investment Info:

Condo fix & flip investment.

Purchase price: $127,000
Cash invested: $3,000
Sale price: $180,000

This was a house hack that I bought in 2017. I put down about 20K which was pretty much my life savings at that point. I rented it out completely after 1 year of living there. After 3.5 years (and a good bit of appreciation) I decided to sell because I needed the money to use for other deals. At closing I walked out with a check for $70K. So for my first deal I got to live for free- collect easy cash flow-and collect about a $50K profit that I did little to earn. Pretty cool when it works out that way!

What made you interested in investing in this type of deal?

The book on Rental Property Investing

How did you find this deal and how did you negotiate it?

right of the mls. Paid exactly what they asked for it.

How did you finance this deal?

conventional financing.

How did you add value to the deal?

Painted some walls and put new flooring in a few bedrooms.

What was the outcome?

The rents were great and the area appreciated alot over the course of a few years. Excellent outcome.

Lessons learned? Challenges?

Renting by the room can be incredibly profitable.

Investment Info:

Condo fix & flip investment.

Purchase price: $127,000
Cash invested: $3,000
Sale price: $180,000

This was a house hack that I bought in 2017. I put down about 20K which was pretty much my life savings at that point. I rented it out completely after 1 year of living there. After 3.5 years (and a good bit of appreciation) I decided to sell because I needed the money to use for other deals. At closing I walked out with a check for $70K. So for my first deal I got to live for free- collect easy cash flow-and collect about a $50K profit that I did little to earn. Pretty cool when it works out that way!

What made you interested in investing in this type of deal?

The book on Rental Property Investing

How did you find this deal and how did you negotiate it?

right of the mls. Paid exactly what they asked for it.

How did you finance this deal?

conventional financing.

How did you add value to the deal?

Painted some walls and put new flooring in a few bedrooms.

What was the outcome?

The rents were great and the area appreciated alot over the course of a few years. Excellent outcome.

Lessons learned? Challenges?

Renting by the room can be incredibly profitable.

@Daniel Reach

What’s going on man. I’m investing in Montgomery now but I bought my first investment property in Auburn right next door to you.

I’ve been investing a few years now and 90% of everything I’ve learned regarding real estate came from this platform via books or the podcast. And the other 10% came from just jumping in and learning from my mistakes.

I’d say keep learning from BP until you feel confident enough to pull the trigger on whatever you want to get into. Over 400 podcast with enough stories for you to learn what you need to know to get started. And they are free. Hard to beat that

@Marcos Gonzalez

Hey man what’s going on. I just wanted to chime in because I actually bought my first property in Auburn back in 2017- and I also had FINALLY saved up 15% ($20,000) as my down payment at the time. It wasn’t out of state for me, I did a house hack then eventually moved out and fully rented it, but it was an amazing experience.

Auburn is a great rental market thanks to the University. Depending on the kind of place you get you could rent it by the bedroom vs the entire house and make more money potentially. That’s what I did- I bought a 4 bed 4 bath condo and rented each room separately. There were plenty of qualified tenants for me to choose from and all of their parents co-signed. I’ve only been investing a few years but that Auburn house was the easiest money I’ve ever made.

The market in Auburn got pretty hot (as with plenty of other cities in the US I’m sure) so I sold my condo a few months back for a nice profit. I’m living/investing in Montgomery Al now because of the opportunities/affordable properties and I’m liking it as well.

I can ramble so I’ll stop here. Just hit me up if you wanna chat more about the area👍🏽

@Nicholas Aiola Okay got it. Let me ask you this though... In my personal case my house was a single unit with 4 bedrooms (college town). I lived in one of the bedrooms and my tenants lived in the other 3- but we were all under one roof. Would that make the entire home considered personal because we all shared living space/kitchen etc?

Thanks again

Hey Im not sure if you're still doing these but I'll give it a try.

I'm thinking about selling a rental property I own. I lived in it from March 2017-March 2019. I house hacked it when I lived there, and turned it into a full rental when I left. It's my been my "homestead" property from the start and to today. If I sell it am I exempt from the taxes of my gains up to $250K like I've always heard around here? If so what exactly would I need to prove I lived there for 2 of the last 5 years if someone needed proof? Thanks!