All Forum Posts by: Austin Marvel

Hey all I'm SURE this question has been asked but wanted some fresh insight from the awesome community at BP. My wife and I have found a pretty awesome SFR with an ADU and potential to split the two levels into separate units and it's on the lake with no HOA.

We definitely want to get this thing under contract, do about $35k in rehab over 3 months then get a cash out refi when it's renting out...we've looked into some of the basic options lease-to-own, subject to, owner financing...etc let's say all those are a no go...

Without throwing the $150k as a 20% down payment on the $700k purchase price how can I structure this to be a viable solution?

We both have separate mortgages, good credit and less than 40% with the DTI score.

This home is only a few miles from her primary residence so we're not sure how we could justify the "second home loan" besides the fact that it's actually on the water. We could always purchase with the contingency that her current home sells but would rather not if we didn't have to.

I've never worked with partners and wouldn't even know where to start when structuring this deal in a way that investors could passively invest. I get the concept but it's the actual logistics that I have no experience in. Just wondering if you guys would be interested in shedding a little light here and let me know what ideas you've got or tricks that have used for you!

THANK YOU IN ADVANCE!

.      -Mrvl

Drama. I didn't commit fraud, this is my primary residence and I sleep there most nights...when we're in town and all of my mail comes to that address.  These are brand new renovated units, I can choose between the sizes; Small, Medium & Large (3) depending on if I have just my wife, my whole family, friends ...etc.

Instead of traditional long term renters for the other units that I'm not using I chose to go with short term, it's a great location and I love hosting guests but also being able to have access to each unit depending on how I'm feeling that week. One of my main clients is a 3 minute drive away...I'm not getting around anything...this house is much closer to the airport and the highway than my wife's house out on the lake. Since we're constantly traveling to visit family and friends...this house was the perfect solution.

As for her house, we stay out there on the weekends that we're in town & sometimes rent it out to friends when we're traveling. 

For my particular situation, you could see how from the outside it may seem sketchy but I assure you it's not.

My lender knew everything I was doing and talked in depth with my lawyer about this to make sure we did it the right way.

@Joe Splitrock

When I was using quotes and weird verbiage that was just to imply that in theory some situations can be catered to.

@Andrew Johnson with the mic drop!

@Matt Devincenzo I'm definitely following the rules. 

My wife bought her house under FHA ahwile back and I bought a triplex downtown FHA because work kept me there late at night. Because I'm an investor and not a slumlord I needed to have the units looking good enough to where we could feel comfortable staying there at night. That being said, I've been rehabbing one unit at a time while I let my tenant lease expire then I move into their unit and rent out the fresh one. MY intent was to furnish it, live in it full time but then someone said hey this would make a great airbnb for when you're gone of course... If there's a way to improve my strategy and make sure nobody would consider it potential fraud I'm all ears. That's the last thing I'd want anyone to think!

@Lee Ripma do you have experience with Quiet Rock? That's one thing I've been considering for the floor below.

Just to shed some light here, I did something similar with a triplex...however, "I am currently living and receiving mail there in one unit while I and my contractors fix up one unit..." then we moved me into the other unit put it on Airbnb to rent out while I'm out of town and then we went to work on the other unit. This is a good way to avoid committing fraud but still reap the benefits of renting property. Luckily if one unit books out at 100% which it does sometimes...I'll just move into one of the units and fix it up...all this is hypothetical. I've never stayed the night in my house downtown but nobody can prove that. 

You've definitely got to be careful because the consequences could be severe but there's plenty of work arounds. 

All that being said, my wife's primary residence is about 30 minutes away on the lake...we spend a lot of time there but nobody comes to check and make sure I'm spending the night at my house regularly. Good luck!

@Will Gaston Yep! Did you see it on MLS or something? Feel free to have a look; https://www.airbnb.com/rooms/4...

We literally don't have any other RE investor friends here in the area.

We moved from WA a few years ago and we're here to stay! Definitely targeting multi family vacation rentals for the long haul!

.     -AM

Hey all, located here in the heart of the South....Columbia, South Carolina!

We have a 100 year old triplex and we're re-flooring the upstairs unit. 

We're going to tighten the squeaky floorboards, add some insulation below the sub floor then some LVP. 

Between the floor boards and LVP layer we're talking about integrating a sound proof underlayment...

I've been checking out QuietWalk, Cork and some of the other options online. 

Just wanted to check with the BP community to see if you guys have any insight for a rookie renovator?

We're also looking for an awesome accountant who can help me file as a real estate professional...if anyone knows of a local solution...

          -Austin Marvel

BTW the new multi-family book is soooo good @Brandon Turner & Brian Murray CRUSHED it on this one as expected! 🤘😊

Hey all, also somewhat new to the area and lightly invested into the Cola market. We live out on LKM and want to get some more vacation rentals out this way. Preferably an off market BRRR running into issues with financing and curious do you guys use 203k loans? I know that I don't know what I don't know but am curious to if there's something I'm missing. For financing a BRRR with minimal money down what do you guys typically do? Would love to link up with any/all of you on an island for a networking event sometime!

Great job and awesome photos!