All Forum Posts by: Andrew Auger

Hi Angel,

I too am attempting to house hack as well. I also take my "owners revenue" into account, I use my current rent payment as a default "rent" for whatever unit I intend to live in. Basically it gives me a better idea how the money will actually flow with me paying myself rent.(yes I know its not really rent and isn't accounted for with the irs ect ect). Its more for me to figure out how in reality it looks in terms of will I be paying more or less than I currently am and how it might look once I move out.

This is the sheet I use to help evaluate properties. I account for Property Management, and then add it back to the bottom line as I plan on managing it myself at the end of the day. Of course there is the BP calculators in the Analyze section for your own reference. 

https://docs.google.com/spreadsheets/d/1OZWj-NXE4F...

Hope this helps!

Keep up the good work! We appreciate it!

Hi Sarah,

I also was interested in a Hubzu property, and for many of the same reasons above, walked away. The contract they have is literally a mine field of traps in my opinion designed to be able to take your money and not get the property. It was so bad, my agent's manager stepped in and basically said they would only proceed with the property if I signed additional documentation stating they were not liable for anything that happened with the house, being fee's, lack of inspection, and more.

We obviously decided to walk away.

Good luck!

@Account ClosedThanks for the very detailed response!

My Fiance and I are in a great spot, we are saving a good clip of cash each month on average and have enough saved up to put a small down payment down on our first property, have plenty of reserves for issues that pop up both real estate and normal life, and have enough to then in about a year look at another property to put 20% down for conventional financing. So we are all set in that department, but thank you for checking :)

 I used QuickBooks for 4 years in my previous job before I moved onto a larger company. I by no means have the wealth of experience that you do with the program, but I can confidently say I know it well enough. My concern with a QuickBooks type program is that it is only meant for accounting. Thus, if I grow over time I will have to have secondary and tertiary programs to support it, many of which have from what I have read fairly robust accounting embedded within them. So, my point from before was simply I could see the benefits of just going with Excel/ledger based to start and then when the revenue and hopefully profits warrant that larger program, make the jump.

Thank you for your input!

I second @Kyle Scholnickcomment!

@Kelly N.So you got your Business Website, Email, & essentially Letterhead once you had your first property under contract. You didn't get the business cards until a bit later.

Did you create a logo or did you just go with your LLC Name?

As for accounting, this one I am torn on in so many ways. I am an accountant in my 9-5 job, so the little kid in me goes, I want the big shiny integrated program like Buildium or Appfolio. But then the realist in me goes your new set of income does not support that program. QuickBooks has plenty of features, I have used it in my professional life, but I don't feel it will be really what I am looking for. In reality, I will probably just use Excel at first until I feel the income and hassle have hit the point where an integrated site would be beneficial. 

Lastly, I am gathering and have gathered a pile of information and I am putting into a lovely business plan/action plan which I intend at some point to let the BP community go to town on. I have identified a Lease(s) that I plan to use, being the Greater Boston Real Estate Board leases as Mass is insane with its laws compared to other states. I also have figured out most of what you mentioned, ACH payments, screening company, and rental criteria. I just am trying to figure out these minor things while I wait for a good property to come available in the towns I am looking at.

Thanks for your input! 

@Rob BelandAs always I always appreciate your feedback but I know I am going to be wanting some or all of these at some point, just a matter of price and when.

Some of the list come from looking for that deal, like the business cards, to which I could have used at the REIA club I went to, where I got access to a potential "deal", well by deal I mean a guy trying to sell me a property for 100% appreciation because he smelled new guy on me, but you get the idea. Also, I don't blame the REIA and I had a wonderful time at it and will be going again.

Hi Everyone,

So while I continue to look for a deal, in the down time I have been trying to get business prep sorted out while I wait for a good deal to come onto the market. Just a bit of background, I am a first time buyer, I have enough capital to buy the first property with an FHA or similar low down payment, and then in about a year purchase a second with regular mortgage. Currently, all I have been doing is gathering knowledge and trying to acquire my first property.

So to the point of this post, I have read blogs like this one, posted by @Matt Faircloth

http://www.biggerpockets.com/renewsblog/2014/08/29...

And this one by @Sharon Vornholt

http://www.biggerpockets.com/renewsblog/2014/01/21...

Both of which talk about items that a Landlord and real estate business should have to look and act professional, which in turn could help you avoid tenant conflicts by appearing bigger than you are, thus them not testing you.

My dilemma is at what point should I, a hopefully soon to be first time landlord, start looking at acquiring these items or anything else you think I should have? When should I get them? How much roughly should I spend on them? Finally, WHY? Please try to elaborate. 

1. Website

2. Letterhead

3. Business Logo

4. Business Cards

5. Business Email (Not a gmail.com but 123abcompany.com)

6. Property Management Software/Accounting (Not excel)

7. Business Phone Line (could be google voice ex)

8. Something you come up with

I am not necessarily looking for hey go use this service, but more of a methodical ideas as to how to expand my brand, professional appearance in correlation to my Business growth. This could be measured in many ways, like at x monthly income add this or at x units you should have this. Also keep in mind I don't want to add things unnecessarily and have expenses without supporting income, unless you think its absolutely worth it!

Thank you all in advance!

Andrew

See response in link :) Might help you and community as a whole.

http://gyazo.com/d007bbd129f19a10861f5c964fc869b1

At least its a floor... half the houses I go to look at are dirt floors...

Does the basement have water issues? That might change peoples suggestions to you, just a thought.