All Forum Posts by: Adam Widder

What's your return on equity if you rent it? What ever that number is, does it make you excited? Whatever your COC/ROI goals are, that equity ROI should meet those. If it doesn't, 1031 to something else, if you've lived there the last couple years, just sell and take the tax free $$$!

I think you'll want to build rapport. Show your excitement. I've found there's a glimmer in older investors eyes when they see the younger generation looking to learn grow take risks like they did. See what financial information you can learn right away to help with your underwriting and deal analysis. 

So you're specially looking for a multi family property that's 5 units, priced around 2.1m? 

I'm guessing you're in a higher cost of living area. First would be to search the online listing, see what's available and practice analyzing/underwriting the deal to make sure it makes sense. If you find some properties 5-10 units see who the listing agent are, I bet you'll repeatedly see a few brokers a few times. Try taking them out for lunch and maybe providing a balance sheet or proof of funds. They're going to want to know you're serious and have financial ability to perform before they invest time in you. 

I live in Saint Paul, MN and the city stipulates how many people can live in a rental based on the bedrooms. It's 2/bedroom here. Maybe check your city code and see what they say. 

In your scenario, hard to imagine more than 1 in that size of space! Legally I don't believe there's a reason why you can't stipulate against it. Just stick to fair housing.

You'll definitely want to run numbers on the current property so it makes money. Use the BP calc. As long as you've satisfied any occupancy rules with your loan, you should be able to move to another and do househacking.

Absolutely. Not sure on exact %, but from a use perspective, I'm in the Minnesota, so not having it paved would be a wreck once snow falls. Terrible shovel or plow. 

I would not. Actually pretty typical to see security deposits lower than rent anyways. Especially if landlords are running specials, it makes the rental easier to financially get in too. 

Hey Paul, I'm local to MSP, happy to chat with you any time. I invest here as well.

Hey @Darion Fletcher let me know if you wanna grab coffee here in the metro! Love talking RE with local guys and learning from each other! 

Hey @Danielle Dickens, personally we've purchased 2 MF properties in our names, so each property has it's own personal liability protection. Up to X dollars. (usually value of home + 10%, either way the amount of personal protection from my insurer is more than the home is worth).

Since our net worth on paper is less than the liability protection, we opted not to LLC.

I thought too about the property management company, and I was a property manager in commercial prior to being an agent, and I'll tell you that the tenant will go after the owner of the property verse a manager, since ultimately it's the owner employing the manager. Also, if it's Danielle the owner and Danielle PM LLC, a lawyer will be able to pierce that PM LLC, like the other user mentioned, they'll see it's the same person...

We purchase in our own name in order to get the low down payment loans, LLC's would have to buy a commercial loan.

Quickly our net worth increases, so once it surpasses each properties personal liability value, we'll get the umbrella policy. 

Not a lawyer, not a CPA, just personal experience. Hope this helps! I focus on saving my money, making as much as I can, as I grow, LLC's will be a natural part of owning Real Estate. Good on you to think ahead.

If you ever want to grab coffee and talk REI, shoot me a note, happy too!