All Forum Posts by: Andrew T Bolton

For a house hacker, what is the term requirement for how long one has to live in one of the units before looking for the next deal? Is that a Fanny Mae/FHA thing or based on the lender?

If the property is vacant, and in a decent condition, you may be able to get in on an IO loan with a balloon payment on an agreed upon time. 

As far as paying the contractor’s, I would use an escrow account that funds can be released at milestones laid out in the contract.

When it comes to contracts, it’s as simple as agreeing on schedules and such and have it written up my an attorney. I have seen in the past where a schedule was written in contract, with delay days added in, and when the contractor was much later than even the added days allowed, there was a percentage of deduct taken from the retainer funds. All of this is to be laid out and made very clear contractually.

@Dave Halevi 

A friend of mine uses deals like this when he is purchasing with no money down. It allows the seller to collect the down payment through the interest. So he has no money in; the rental income makes that payment for him. 

@Vladimir Kunau my apologies I haven't been on BP in a while. I ran into the same problem when I created my LLC. I found it easier to talk to a CPA. From what I can remember you're on the road a lot. A lot of CPA and Attorneys will give advise over the phone. Both are vital parts of team building and they are professionals with a lot of knowledge. I pray that this helps you.

You definitely need to analyze the property and have a general number in mind. This will let the owner know that you are serious. That number is subject to change if you add a “contingent on” section in your contract. That way you’re not getting burned. Also keep your safety in mind. A lot of people don’t like others showing up to their place without some form of initial contact. Try to send a letter before hand. 

@Vladimir Kunau because you’re a driver you may start by analyzing deals from Zillow. A lot of agents will do a virtual walkthrough with you. Once you find a deal and have the numbers to back you up, you can  get an investor list emailed to you by a broker. My broker keeps a list of investors that buy in my area. Get your deal under contract, then start calling those investors. You may get OPM or a partner, but part of a deal is better than no deal, and the good thing is all of this can be done online and mobile. Just a tip, David Green’s book on out of state investing is a good read.

I would first get the tenants on a lease. Then check the vacancy rates for that area. That will let you know if you have to do a gradual increase instead of immediate. Thirdly I would do an advertising campaign for the vacant unit and lease it at the new rate. At least then there is still some kind of cash flow if you find yourself having to fight the good fight.

Yes. Just as the landlord has a right to choose who is allowed to move in, a landlord can deny a co-signer or guarantor.