All Forum Posts by: Anthony Warren

Off Market Property in Sedalia, MO (Near Kansas City)

Do you know someone who would like a deal in Sedalia?? This is a 2 bedroom 1 bath house offering 926 sqft. This property will require a good amount of updating but holds a ton of upside. Property rents are strong at between $630-$650 per month. If you know of anyone who is up for a great deal, let me know. You can contact Anthony at (903) 413-0367

***** IF YOU CAN PRODUCE A BUYER I WILL PAY YOU A REFERRAL FEE!! $$$$ *****

Hello all, 

I am rather optimistic about closing on my first investment property within the next 10 days. I am not counting any chickens before the eggs hatch but I believe everything is coming together. With that being said I will be house hacking a duplex. So far this has been a very educational experience with some small hurdles along the way. I have a few questions about book keeping and management. I know not everyone is an attorney or an accountant and I take all information into consideration through my own due diligence. 

My first question is this. I will be self managing this as my first investment to gain experience. I am inheriting tenants and their lease is coming up in July. I plan on putting them through a new application so that I have the experience and also all my i's dotted and my t's crossed. One of the biggest questions I am already asking is about book keeping. I have had a few different ideas as for how I may handle taking rent and holding money such as deposits etc. I really feel like one option is for me to open up a new checking and savings account in my name and handle all money through this account. My real fork in the road comes to an idea I had about sarting my now property management LLC. I would use the LLC to open the bank accounts and have that LLC to have all money pass through. Is this something anyone else has done? What would be the pros and cons for handling it in this manner? Would there be any tax advantages or disadvantages for doing things this way? Should I hire a CPA to get an idea of what to expect for when I file taxes next year?

Next I have come to a point where I am looking at raising the rent for the current tenants when I renew their lease in July. At this moment I will not cover the complete mortgage with the tenant's rent. I still plan on taking out a percentage for repairs, capex, vacancy, and management. This money will go into a savings account for future needs and I will come out of pocket around $500 a month for the remainder of the mortgage. At this point I am looking at this as an investment through equity growth. Eventually after I move to my next deal or property I will cash flow although rents will have to increase. Ive read the book on managing rental properties by @Brandon Turner and have listened to countless podcasts that talk about training your tenants. The one thing I notice with some landlords is that they keep their rates stagnate. I want to get into a system where I train the tenants to understand that increases are apart of the equation. With that being said what are other landlords seeing as a general rule of thumb for rent increases? Are these increases annually or every other year? I know this is probably dictated by many factors and local economics, I would just like to have an idea of what others may practice. 

Aside from those few questions I would absolutely love any advice or bits of knowledge before I officially become a landlord. I am so thankful for this forum and BP. This is such a great wealth of knowledge. My biggest hope is that someday I can help the next guy in line. 

Thanks, 

Anthony Warren

Hello all! My wife and I are looking at purchasing a multi family property to house-hack. I will be using a VA guaranteed home loan. I’ve ran quite a few numbers on many properties in my area and what I’m seeing is that hitting one percent is dang tough. So it leaves me to think about forcing appreciation to build value in other ways. A question that I’ve had is this, is it possible to use the BRRRR strategy if I don’t have any money tied up in a down payment? Also is it possible to refinance if I’ve used a VA guaranteed home loan? If anyone can help explain this to me I’d love to hear more. Thanks, -Anthony W

Hello all! I am looking for any suggestions for investor friendly contractors in the Springfield, Missouri area. Any referrals would be a huge help! Thanks, -Anthony W

As a newbie, and a former agent in the state of Texas I would recommend contacting a licensed agent in your area and building a relationship. I am not certain about every state and their laws but I know that some agents in Texas would have assistants that could have access to MLS. It might be worth it to pay a flat rate to run comps on properties. It is an expense but could be the saving grace as a cost of doing business. Some agents would possibly pass that task off to an assistant or you may very well find an agent who would do them for you. Hope this helps. Let me know if you find a better way to get comps on a property.

Cheers, 

Anthony Warren

Good luck! I am looking to get into my first investment this year through a house hack as well. I know you must be excited to begin your journey. 

Hey @Rochelle Duong,

Are you looking for a residential realtor or someone who is a licensed agent that works specifically with investment properties in DFW area? I have a few contacts if you are interested. I am licensed, but no longer reside in Dallas, Texas. Let me know how I can help!

Best, 

Anthony Warren

@Nathan Platter I understand completely. I have thought about the very idea that we may not be able to cover the full amount of PITI but we will live for a heck of a lot less than we would otherwise. My wife is going to look at a duplex today that is pretty big 3 beds 3 full baths and 2 car garage. I have run the numbers and it comes close to that 60/40 mark. It should also provide good passive income when we decide to move as well. I haven't decided if I want to go FHA or VA for financing which obviously changes the cash on cash ROI. I don't want to miss on properties because I feel greedy so I feel like at this point if I can have the majority of the mortgage paid for and I lower my cost of living that it would be a great way to slide my foot in the door.

When purchasing a house hack do you run the numbers in the instances of being an occupant and later when you plan to leave the property? Also since I am deployed I am looking at mainly properties on MLS. What I'm seeing when I run the numbers on the BP rental tool is that most properties I would have to purchase at 65-70 percent of the retail value to cashflow. The cash on cash ROI is usually pretty high, typically between 16-22 percent but the cashflow really is only around $150-$200 per month. What are others shooting for as far as monthly cashflow? I know markets dictate but I'd love to hear some expert opinions. Also What are most people using to find accurate property ARV's? Im a little leery with trusting zillow. Thanks everyone and I look forward to hearing any advice!

cheers, 

Anthony Warren

Hey everyone!

My name is Anthony Warren, and I am a real estate investor in training. I have been listening to the podcasts for about 2 months and am reading every source of content I can manage to get my hands on. There is so much to learn and it is a very exciting time in my life to take the plunge into the water. I am not necessarily new to BP, but let's just say reborn as a member. I had a profile when I worked at a wholesale brokerage in Dallas before moving to the Midwest a couple of summers ago. I really took for granted what the site was and really what I was doing. I had a crash course in real estate from a non traditional sense and I parted ways with what I was doing because I didn't feel as if it were the right fit for me at the time. Move forward to 2018 (Wow it's 2018 y'all!) and I find myself on my third deployment with the Army national guard, yes we do get deployed! I have high expectations, but don't let my expectation setting fool you. Now that I am a few years older and my wife and I share the vision it is so much more clear what we want in life. I now see the missing ingredient with so many failed attempts is ACTION. My goal for 2018 first and foremost is to create action. With the wheel turning I have then set my sight to buy a duplex for a house hack. I will have around $40K to work with for another deal. I plan to either go the route of FHA or VA financing for the house hack and put the other $40K to use toward something else. I think it would be a very plausible goal to say that by 2019 I would like to own 3-4 units (the duplex and one other property.) I am open to networking and learning from anyone who has valuable information along my journey and I truly look forward to learning, growing, and meeting some of you at some point in my journey. Aside from that I hope that one day I can help someone on here and give back in some way. Thank you all for your time in getting to know me and I look forward to hearing from and any and everyone that will reach out!

Here's to 2018 a year of growth and learning.