All Forum Posts by: Adam Juodis

Say I were to take out a $130,000 loan, with a down payment of %15. If I needed $45,000 for my repairs, can I tie that amount into the $130K conventional loan? Would a greater down payment be required, or does this vary per lender? Does this typically increase interest rate, if even possible? I know that with FHA loans, you can take out a 203K for rehabs, but I am not sure if I can do something of the sort with a conventional loan.

Hey guys. My original plan was to buy and hold a rent ready rental, but I came across a nice 4BR/2.5BA SFR that had an appealing price point. This particular property has been listed for over a year now, and the price I am thinking to offer could make it a really good deal through the BRRRR method.

The thing is, with work and commute, I am occupied 55-60 hours per week. I work in an office, but I cannot freely call somebody with real estate manners whenever I wish either(That would have to be saved for 10am breaktime, lunch, or 2:30pm breaktime, but I could take the occasional call if urgent). The reason I am mentioning this is that I plan to contract out a majority of the rehabbing out. I'm not sure how much time you need to manage contractors to take calls, and if a good amount of it can wait till the evenings or weekends- maybe someone can shed some light on this. I also live very closely to this property.

The state of the property is not bad. All major things like roofing, electrical, plumbing are all intact. Other than ripping out carpeting, putting in some floors, touching up the kitchen, fixing up the blinds and some other smaller touch ups, the rehab is not that grand in scale. It's worth to mention the sump pumps are failed, but replacing sump pumps is not that costly or difficult to do. I plan to do the smaller touch ups and painting on the weekends/weekday evenings and leave flooring and kitchen stuff to the contractors.

Has anyone done something of this sort here with similar circumstances? I'd love to hear your story, and even if you haven't please let me know your thoughts on this! I appreciate it BP.

@Bob Crane I have never been to the Naperville REIA, so I can't comment on that, but there is a meetup in downtown Downers Grove monthly. See link below:

https://www.biggerpockets.com/forums/521/topics/392581-downers-grove-networking-event-january-18-2017?page=1#p2469359

@Darren Budahn Do you know if you are vulnerable to being sued if a tenant injures themselves on your property due to snow or ice?

I am thinking about buying a 4BR-2.5BA SFR to BRRRR, and while running the numbers, I wasn't sure if I should calculate for landscaping(Ex: Mowing the lawn) or snow removal. I know in multifamily, it is the responsibility of the landlord to take care of this. Can I put lawn care and snow removal on my tenant for a SFR? If this is in my contract, but my tenant injures themselves due to snow/ice, can I be sued or would my contract take care of that issue? Thanks!

Yes, it's no problem. I'll take a look.

@Michael Doherty I would analyze it as that both sides are rented out by tenants. People who house hack generally do not stay at the 'house hacked' property for too long, and move onto a new property. You need to make sure in your analysis that once you move out, that the cash flow numbers and ROI meet your expectations.

If you are talking about your past posts on the forums, go to the right corner of your screen(Where the circle picture of your profile is). While hovering over the profile picture, a drop down menu will appear, and from here you should click on profile. When you are in the profile screen, on the right side you will find your latest forum posts, and below that there will be a link for all your previous posts. Hopefully this is what you were asking for.

If you find a seller that owns the property free and clear(Or the majority of it) or is nearing retirement, you can ask them to seller finance. Many sellers do not have a plan for the money they receive from the deal, except to put it in a low interest bank account. For those types, seller financing is appealing, because you are using them as a bank and paying them an interest rate which is a much better return vs keeping that money inside of a savings account. 

One of my goals for 2017 is to start tracking my net worth. I am looking for suggestions on the best way to track and constantly update net worth that isn't too time consuming or hectic. Do you use software to simplify Net worth tracking? Does excel do the job for you? I'm interested in hearing how others track and update their net worth. Thank you!