All Forum Posts by: Andrew Powers

If you're truly ready and the deal makes sense, buy one. If you are concerned about a potential market crash, then protect your investment by having exit strategies as said above and buy property under market value in case values decrease. 

What are your investment goals? What's your risk tolerance? On a macro scale, in general: 

-if doing long term buy and hold, not much changes over the long run (say 15+ years) as real estate values tend to steadily increase over time. Life changes and you may find yourself needing to sell a property unexpectedly, so keep that in mind.

-if doing short term buy and disposition, real estate values may decrease so it is potentially more risky in this economic climate but not impossible. Make sure purchase price is below value, rehab costs (if appl) are accurate, rehab time is short.

Good luck with the walk through! Make sure you triple check the numbers, and be conservative!! Are you sure the property tax is correct? Seems super low at $500 per year. And tax amount would change from before to after rehab/refi which is not reflected in report. Also I'd suggest bumping up the cap ex and vacancy to be conservative. How  long do you anticipate the rehab to take? How many contractors are quoting the job? If possible line up a few to quote it

Seems like you'll be able to pull out some cash from the deal if the numbers are correct!

Brandon Turner from the BP podcast does this. He buys a house for his children, pays it off with 15 yr mortgage via renters, and the rental proceeds can go to paying college. Or sell and the equity would pay for it. Great idea!

I wish I would have interviewed more home inspectors before choosing one!

Good luck on starting your journey! Keep searching the forums and listen to the podcasts... and take notes! I'm creating an excel system for things such as how to finance a deal to remind myself of all the options out there. From the BP resources alone, I have about two dozen methods written down. The information is out there, be diligent to take notes and organize into usable information to give yourself a competitive advantage!

Awesome question. I'd say my "why" is what drove me to jump into REI and my first property. One of my macro goals is simply to be able to do what I want, when I want. To me that is freedom. Working my way back down to an actionable step (ie buying my first house), and having the compass of this goal and other macro goals, pushed me to make the move. Now on to the next one.

If you didn't cash the check then the money didn't come from their bank account. It may be a stunt by the tenant but if they've been diligent in the past to pay on time / you want to give them the benefit of doubt, have them give you a check ASAP for the remaining amount. What does your lease say for non payment?

If people are paying rent via checks and money orders, that is difficult to track and tenants often abuse mailing delays and things like your describing. I suggest looking into a better system of collecting rent if possible. There are many management websites and rent collecting methods. I use Cozy which the tenant's bank account direct deposits to yours. Less hassle and stress.

I recommend to read the book Unshakable by Tony Robbins. It gets into different types of financial advisors.. those who work fully in your interest vs partially in your interest / partially in their company's interest. Really interesting read if you are seriously considering getting FA.

Depending how it works / worked out, if you want to put an offer on a house that has an unpermitted addition, put the offer in based on the rest of the house not including the addition. My realtor suggested this when we put an offer on such a property.

Welcome! BP is the answer. They have many resources from articles, to podcasts, to youtube videos. Use the BP calculators and see the youtube tutorials on it. This will give a rough starting point. Educate yourself about real estate on the BP website, BP ultimate beginners guide, books, etc. Practice alot and be conservative with numbers you use!