All Forum Posts by: Benjamin Aaker

Get a duplex and live in one side. With the FHA loan you won't need a huge amount of your savings. Make sure your wife agrees with this plan, though.

Hi mason and welcome to the forums. This is a great place to get your questions answered.

Yes not just for cash flow but for the health of the deal. A high property tax rate will increase the taxes more quickly as a percentage of total expenses when the property value increases. You also should be looking at the trend in the area. Are prop taxes going to increase? Also it's good to research how the municipality calculates property value.

High property tax isn't an automatic 'no', but is one negative factor in my analysis. As with everything, if the price is right, the property tax can be whatever it is. 

Please post more info about the deal. Projected expenses won't be enough.

Determine what price you can pay for the property. That will involve settling on your plan for renovating. Keep in mind that office is down right now and it could take an extended period to fill.

Try to determine why it hasn't sold for 2.5 years. Maybe the above. It can't hurt to ask the agent. Try to find out what the seller's pain point is. Seems like they aren't in a hurry to sell if it's been on the market that long and they have raised the price. It's likely they need to get a certain amount, possibly for a mortgage. You can ask what that is and sometimes you'll get an honest answer. 

With seller financing, you are already on the back foot so it seems like this would be a good time to make an asking price offer if your numbers suit it. The key will be to set up terms so your monthly payment works. Then you both get what you want. Good luck.

I would have asked you what your long-term goal is but you have already thought about it. Good for you. Since you want to aggressively invest in the near future, you will need cash and the 30 year option is the right one for you. As you purchase more, your net worth will go up more quickly than the savings in interest with the other option. My recommendation would be different if you were a high-income earner or if you wanted steady equity growth.

How handy are you? The GC does a lot of the odds and ends work of tying the place together. Managing subs is also a lot of work. Since you don't have the contacts, you will likely wait longer to get them in. You'll need to do a lot of learning on the order of operations. Also, make sure you know what the local laws are. You may need a license to GC even on your own property in your area.
GC in my area cost 10% of the total and I would say that is worth it for what they provide, but if you have the knowledge and willingness to be on the phone with subs (and spend a lot of time on site) you could save that by DIYing it.

If you are coming in with 235k, you probably would not need much more, if any, to make the purchase. If you need more to do the rehab, perhaps instead of partnering, you could get your former boss to do a personal loan. 

Hi Andy. Welcome to BP. Good luck with the wholesaling strategy.

Generally there is some coverage for vandalism, but you'll have to look at your policy to find out for sure. Keep in mind you will probably have a deductable to pay first. Unless there is an emergency situation, take a lot of photos and call your insurance agent before doing any repairs. Best advice is to call your insurance agent right away.