All Forum Posts by: Adam Bush

I have been recently reading into the possibility of the end of conservatorship and I am trying to better understand what this means in general and how it may effect the housing/real estate market. If anyone could add any information it would be greatly appreciated.

@Tyler Kastelberg That is an interesting statistic. Do you have any information as to why that is? 

First and foremost, what is your goal as a real estate investor? Are you looking for rental properties(cash flow), flipping, "house hacking" or in other words buying a 2-4 unit building and living in one unit and renting the others out? As I am a beginner with no deals yet, but have done tons of research, there are many ways to go about real estate investing. You must first ask yourself what your goal is and what route you want to take to get there.

Personally, I am looking for cash flow first and appreciation as icing on the cake. I want "passive" income, I don't want to work a job. If I had 50k, I would be searching for a 2-4 unit building that cash flows nicely (atleast $100 a unit, but obviously the more the merrier). This route works well as you can get a FHA loan for around 3.5% down. You could buy a 350k property for roughly 13k down + closing costs and such. Which still leaves you with a good amount of liquid cash. Depending on your market, it may not be a bad idea to partner up with someone trustworthy you know.

Great info, I'll be checking these out. As an aspiring new real estate investor I look forward to networking.

@Adam Wertz Hello fellow Adam, I would recommend you get your real estate license and start working that business on the side, such as before/after/during work (if possible) and especially on weekends. Once you do this on the side and build your business up enough to where it can support your family without your day job then decide if you want to do both, quit your day job or whatever the case may be. Easier said than done, however it is very possible. It just depends on how much you want it and how much you truly enjoy it. You could also say it greatly depends on your "why". Your "why" will drive you. Why are you doing it? I have found that when I truly enjoy doing something, I do it regardless of being tired or whatever the case may be because it genuinely excites me, so those hurdles such as tiredness are not felt. For example, I will hop out of bed regardless of how much sleep i had because I am genuinely excited to get back to work on said matter.

@Sachin H. I would say the way to deliver the eviction notice varies from state to state. Also I would say that email is not the proper way to deliver an eviction notice, however, you should find out the laws in your state on how this is to be appropriately delivered, then proceed from there. Email may after all be viable, just depends on your state. I am going to assume it's not though.

@Dennis M. This is pretty much the whole story. We have had similar issues before such as hair clogging a sink and when they fixed it there was no charge. We are very good tenants who take care of the property and rarely have issues or maintenance requests.  I will look at our lease and continue fighting this. It's not a lot of money, I am more fighting over the principal of the matter. 

@Kadeem Wells Good advice, I will see what the lease says about this. Their only argument so far was that we caused this to happen so we are getting charged. I am currently waiting on the head manager to call me back to discuss the matter.

Hello BP, I am actually making this post from the tenant perspective. We had our property manager send out someone to fix our sink trash disposal and for some reason they are trying to charge us for this. Does this seem normal? We are just tenants and did not break anything. The disposal simply just was not working because of "too much food" but it was not broken and no parts or anything were replaced. Why are they trying to charge us for this? I am in the process of disputing it with the property manager and being as we are in CA and I know the tenant laws here favor us a lot I am willing to fight this. We have been amazing tenants for 3.5 years. Never paid rent late and always very responsive and respectful to our landlords. All annual inspections have gone very well and have never had any problems with the property or company before. A prior repair we had recently, they tried to bill us for too, but after talking with them about it they realized they were in the wrong and took it off. Over the the 3.5 years we have lived there we have paid approximately 100k in rent. Doesn't this seem kind of petty on their end?

@Cassidy Burns Thank you for the insight. I agree on everything you said and just need to focus right now on saving capital. This is pretty much the same advice I have been hearing and I understand it.

@Russell Brazil I am coming to understand that, thank you for being honest.

Hello BP, I am just beginning my real estate journey and have been doing tons of reading and listening to BP podcasts, along with eagerly searching for my first investment property. I do not have much capital, about $10k and also have a credit score of 750-760. I do have some debt but nothing crazy. I have been paying it off like a mad man which is also part of why my capital is low at the moment. I am born and raised in the DMV (DC, Maryland, Virginia) particularly Northern VA, however I have been living in the San Francisco Bay Area for the past 4 years. I have support and a great investment minded agent back in DC who I have been bouncing all my ideas and potential properties off of for his opinion. Also I do know the area pretty well and have a good idea of the market and I travel back "home" once-twice a year. Anyway, I found what I believe is a great investment property in Washington DC, an area that is growing exponentially and will continue to grow in the coming years. Due to my capital being low I am looking for some ideas on how to creatively finance/fund this possible deal. This is a bankruptcy sale so I understand this will get bid up from the $200k start price, my prediction is as high as $350k-400k, I would hope for much lower, but I am mentally prepared for these price levels. This property is also located in the opportunity zones of DC, which offers tax incentives for investors. I am going to view it on June 20th to see how much work it may need. I am under the impression that some units may be considered uninhabitable so they may need substantial work. I have no experience estimating rehab costs, but I will take whatever I come up with and double it. Should I bring a contractor with me when I go to view it? Also, I am not familiar with bankruptcy sales, I will start to do some research on how they work but if anyone has any feedback on that it would be much appreciated.

All units in this 4 plex are 1b/1b and the average rents in the area are about $1100 a month for a 1b/1b according to rentometer, but lets say 1000 even. That brings the gross income to $4k a month. A lender I have been speaking with gave me numbers of if the property went for 250k and it was bought with 20% down, payments would be around 1400/month. Using the 50% rule $4k-$2k(monthly expenses, vacancy, CapEx, repairs, management, property taxes, etc) = $2k. $2k - $1400(P&I) = $600 cash flow, obviously that's just a quick analysis, but I have put multiple different scenarios of numbers through BP rental calculators and the possible cash flow potential looks like it could even be better than that, it just depends on a lot of things as you already know, such as if I self managed, which I'm not against to start off, would save $200-$400 monthly. My thoughts are all over the place just looking for some insight because I am super anxious to get started, just looking for a great deal that I can actually afford and get into. I look forward to any constructive responses, good or bad.