All Forum Posts by: Adam Dassie

I m new to REI, and I was wondering about partnerships. I am in the military currently,and so, I have to move every few years. I am in the process of moving in the next few months. I want to get out and start making connections. I am not sure I have currently have a lot to offer in my current position, but I was wondering what the financial partners are looking for.

Is it the partnerships that come first or the deals? I think it is the partnerships in most cases, and if I am right what would be the best way to find a partner to build a relationship with that would be okay investing in different parts of the country (world?)

Any advice would be welcome. Thanks.

Adam

To anyone still following this,

I have decided to rent the place out. After doing a bunch of legwork and meeting with some PMs I believe it is the best option for the situation. Especially after hurricane Mathew came through the area. It caused over $10K in damages that the insurance company is going to picking up. Seeing the house survive that has really help put my mind at ease from natural causes and the damages were all the things I was worried about having to replace once rented or before so hurricane was a good thing for me.

I believe this should complete this forum post so I just wanted to thank everyone for their time and participation. BP has really helped open my eyes to real estate.

Adam.

Hello BP,

I am new to the site and have been reading and listening to podcasts for about 2 week. In that time I keep noticing people mentioning thumb rules they use when looking at properties. I have seen things like the 1% rule, the 50% rule and the 70% rule. I think I sort of grasp the idea of these rules, but I am not sure. 

Is there a forum post I haven't found, a podcast, or some site out there that explains each of these rules? If not, will you please post about one of the rules? If these articles do not already exist I would like to create a thread that brings them into one convenient place for all to learn from.

Also, are there any rules that are more applicable to one geographical area or market area over others?

Thank you to everyone who posts. It will really help me and hopefully at least a few other new people in the market.

@Dan Call thank you for all the resources. It is really helping me to understand more and more about all the different aspects of becoming a landlord and just investing in real estate in general. For a guy just starting out you have pointed me in direction for some very valuable information that I did not even begin to consider. Thank you and seeing as I only got a hand full of responses to this post I will defiantly include location in the title when appropriate from this point on.

@Thomas S.

So besides a standard lease and drain clogged clause are there any other good idea clauses or protective wording that should be used to prevent these kinds of problems?

$200/mo. cash flow would be great. Thank you for that analysis. If in the worst case I break even then I would consider that much better than a short sale and ending up with bad credit.

I know I am missing a few numbers in my original post, but I am not familiar enough with them to make approximations as you did. So thank you for those. It will really help me out going forward, and I have since found a online calculator to help with those foreign numbers. Still nothing beats experience so thank you again. You also mentioned some other variables and I am intrigued to know what they are. If anyone has any insight I would appreciate it.

For any future readers, it is a SFH where the tenant pays utilities.

I am still reading a bunch on the forms and learning a lot. Thanks to all BP for their activity on the forums that helps so many peoples.

@Dan Call , Thank you for your reply.

I have done the math on the move and my overall pay will significantly go up once I move. Not sure how the PCS will affect me because I have always moved myself since my previous moves only required moving me and my seabags. I can afford some small one time hits. I am just worried about long term negative cash flow.

As for the CAPEX, property manager, vacancy, and ect. I am fairly unsure of these aspects. Living in the house for the past 3 years and fixing the current known problems I don't think there will be any large CAPEX. I am currently talking to friends, family, BP, and google to find a Lawyer and property manager. 

I am really just trying to see if others think the remaining $455/mo. is enough for these costs that are unknown to me. 

I didn't know there was that calculator on this site and will be using it here shortly. Thanks to you I learned something very valuable, and I can not thank you enough for this.

If I do have to do a short sale that is possible, but I would like to try and avoid the bad credit and the loss of some of my insured benefit. You are correct though that I can still use the VA loan after a short sale.

Again, thank you Dan.

Hello, I am new to BP and have been reading posts for the past month.

I am currently active duty military and set to be relocated in the spring. I bought a house here and some things didn't go as planned. The military moved up my orders by 9 months and the other homes in the area sold in the past year for much lower than my home. The new buyers have since reno-ed the houses and are now renting them. Mine was a flip turn key property so with these new lower sales and the quicker relocation than I was expecting I would lose 15k just on sale price plus have to take a huge credit hit and lose my VA benefits. I don't want this to happen so I am currently refinancing my home so that if I must I can pay it all out of pocket. To prevent this I want to rent the home.

These are the details on the home:

$135675 - 30yr @ 3.125% (PI 581.20 and PITI 745)

Rent potential of $1200 - $1250/mo.

From my research I should generate a cash flow of about $100/mo. I know this isn't the greatest investment property, but it is what I have to work with. Honestly I will be happy as long as the house pays for itself. and doesn't negative cash flow. Or the tenant does not destroy the house.

My question is are my numbers and expectations realistic? Any advice, recommendations or pitfalls to avoid going forward would be greatly appreciated. Thank you all in advance! 

Hello, I am new to BP and have been reading posts for the past month.

I am currently active duty military and set to be relocated in the spring. I bought a house here and some things didn't go as planned. The military moved up my orders by 9 months and the other homes in the area sold in the past year for much lower than my home. The new buyers have since reno-ed the houses and are now renting them. Mine was a flip turn key property so with these new lower sales and the quicker relocation than I was expecting I would lose 15k just on sale price plus have to take a huge credit hit and lose my VA benefits. I don't want this to happen so I am currently refinancing my home so that if I must I can pay it all out of pocket. To prevent this I want to rent the home.

These are the details on the home:

$135675 - 30yr @ 3.125% (PI 581.20 and PITI 745)

Rent potential of $1200 - $1250/mo.

From my research I should generate a cash flow of about $100/mo. I know this isn't the greatest investment property, but it is what I have to work with. Honestly I will be happy as long as the house pays for itself. and doesn't negative cash flow. Or the tenant does not destroy the house.

My question is are my numbers and expectations realistic? Any advice, recommendations or pitfalls to avoid going forward would be greatly appreciated. Thank you all in advance!