All Forum Posts by: Aaron H.

You can either bill them for actual use (half each), or you can figure out the average bill, split it in two, and tack it on to the rent as a fixed charge. The latter is probably simpler, but doesn't account for a month where, say, somebody left a faucet on 24/7.

Getting the easement shouldn't be difficult if you have the cooperation of your father in law - talk to the local planning/building department and figure out the steps for your city/county. The important thing is to make sure that both houses are on their own sewer lines, and both have paid a separate sewer tap fee. You don't want to deal down the line with the problems caused by both lots sharing a tap/line.

The best location is the one you build a team and actually buy in :) There's no shortcut to learning about a market and understanding the specific demographics, areas, etc.

The general advice you'll see repeated is mid-size to large metro in the midwest or southeast. Cleveland, Indianapollis, Memphis, Atlanta, Louisville, etc.

I'm skeptical you can do a "full renovation" on 2500 sq/ft including a roof for 25K. Try to get more solid numbers for insurance and utilities, rather than a percentage.

Sounds like you're renting by the bedroom? If so, up your PM% and repairs and maintenance, college students renting by the bedroom are some of the worst tenants possible, and you'll see a lot of turnover. I'd also plan on higher than 5% vacancy if you're doing turnovers on a per-bed basis.

Unless you're buying in cash, also figure out your net cash flow after mortgage payment.

Strongly suggest getting a real rehab estimate from a contractor or your flipper friend.

I'd also suggest plugging your numbers into the BP calculator - you might get more specific feedback requesting a calc review in that forum instead.

If you make money from wholesaling, it's a business, and your report that as personal income on your tax return. If you don't, then expect trouble.

Sounds scammy, but you're more likely to get a real opinion on whether something's legit if you tell people what geographic location and what meetup group you're looking at. If it's legit, you'll find somebody here that's been to it.

To be clear, by "offer contract" I'm only talking specifically about what you put on the standard Colorado DORA offer contract form (CBS1-5-19), not "all the paperwork that goes into doing the deal." That is, I'm not suggesting you shouldn't get something signed and in writing re: loan terms with the seller during the negotiation process when making your initial offer, just that the legal document that spells out the actual loan terms is going to be the promissory note, not the initial offer form. Section 4.7 of the standard CBS form on seller financing doesn't include a place for you to spell that out...So you can have a signed CBS offer form, but the loan terms can be part of a letter of intent or etc. (that you sign at the same time), and then incorporated into the closing once you get the real legal loan docs drawn up. If you're making a down payment, that specific amount IS normally noted on the offer contract, though. In terms of how specific your additional LOI/memo stuff should be, the general outlines of the loan terms is fine - rate, term, balloon, etc. You don't need a full amortization table and 30 pages of all the specific loan provision legalese drawn up in advance, that's done by whoever is preparing the loan paperwork.

Don't worry about the hit to your credit from applying - it's marginal at best, and as long as you close on a loan in the near future, any additional inquiries from lenders aren't going to count against you. Your credit scores are high enough that the incredibly small hit from a credit pull is not going to affect your final loan rate one iota.

The best (only) answer to your original question is going to come from a lender themselves - there's too many factors that go into determining loan eligibility to give you a reasonable answer based on a small snapshot.

Tell the contractor that you'll be providing materials and you want their bid to only be for labor. Then, figure out whether the materials the seller has are sufficient, otherwise factor the extra material costs into your final rehab estimate.

Typically, each state has their own boilerplate real estate contract/purchase agreement forms you can download. I don't live in CA and have never done a deal there, but if you search for them, I'm sure they would be easy to find.

My suggestion is to contact the title company you'll be using for escrow/closing - they know all the details on how to do agent-less transactions and what forms they need; they'll be able to walk you through exactly what you need to know.