All Forum Posts by: Benjamin Aaker

Fix up the mobile home. You could probably raise the rent after that and it wouldn't be such an eyesore. The concern if it is ugly is that you won't be able to get as quality of tenants in the 6-plex, I know. They won't have a care if it looks nice, even if it is a trailer house.

Go with the multifamily purchase. The economy of scale is a big help for investors. Buy now, but make sure it is the right deal. Many, as you can tell, are overpriced.

Here are two of my favorite areas that get missed:

1. Verifying expenses - this is an area that sellers can easily 'forget' to put into their profit and loss statement.

2. Inspection - don't let things slide. I did a scope on a sewer of one building of a two-building complex and it passed. The inspector would have had to remove part of a wall to scope the other one, so I let it slide. A year in, that building has sewage in the ground floor and we are tearing up cement to fix the problem.

The tradeoff should be more of a cashflow vs equity build. Most agree that buying for appreciation is a gamble and you should avoid it. But, you can set up your mortgage so that you pay down debt faster. The price is cashflow. Certain high-performing investors would rather have this than extra taxable income (even after considering depreciation). They want to build equity with the plan to cash out or live off cashflow when their current income goes away.

You should pay the partner as a property manager. This is usually a percentage off the gross income. Work out exactly what needs to be done for this payment. One person should do all the administrative tasks for a fee. This could be the same person. Try to avoid going 50/50 in the deal, though, as this can cause problems if you don't agree. It could be as simple as going 51/49 and one person puts in slightly more cash.

I'm assuming because you gave P and I of ~400 that you are giving us monthly and not yearly cash flow. What do you plan to do with the 5.8k difference? Are you accounting for the $22 PMI in your $150? Calculate the difference in cash flows and determine if you can do better than that by investing your 5.8k. If you can, then it's option #2.

I know you asked about Grand Haven, MI, but i have a 4 unit Air-BnB that looks like a little motel in Garretson, SD. I rent it out for what I call medium-term rentals. Usually a couple of months at a time, though the place is grandfathered in for 1 day minimums. People are moving into and out of the area regularly and we have about 60% occupancy without much change during the winter. We are not a vacation-destination so we don't see seasonal changes as much.

Contract for Deed! This personal friend might be willing to let you make payments to him/her without anything down. If you fail to make payments, they can take back the house (should that be in the terms of your contract).

You can. The homeowner has to become current on payments. The preforeclosure period is designed to get a homeowner back on track with payments. The bank is probably trying hard to restructure the mortgage. Now is a great time for you to start talking to the homeowner about purchasing from him/her. You might be able to solve their pain-point (not being able to make payments).

Hi Minh, welcome and thanks for posting. You have 15k so you're not broke! You asked about the easiest way to invest. Maybe this wasn't what you were thinking but buying shares in a real estate exchange traded fund would be about the easiest.

On the other hand, if you are looking for less easy, but more rewarding (in my opinion), decide how much work you can do given your current circumstances. A fix and hold might be right for you. Better than that would be a house hack, getting an FHA loan on a 2 to 4 plex and living there while saving up money. Lots of options given your cash.