All Forum Posts by: Benjamin Aaker

Hi and welcome to BP and Sioux Falls! I agree with Joe's comments: This is a hot market and deals are tough to find. Turnkey might be a tough go unless you are looking to build equity for the long haul. Rent/price is lower here than you would expect listening to the podcast. The value usually comes from deferred maintenance or some other seller distress. 

Hi and welcome to BP and investing in Sioux Falls!

Hi Aaron, welcome to investing and BP. Glad to speak with you if you have questions.

I kind of like that idea too. It hopefully would help them stay happy living there.

If you are looking for purely equity, you should be able to weather it. If you have, as you seem to say, a large income, perhaps you really don't care if there is no income from the property and you build equity and hope for appreciation. I would, however, suggest you put in the 10% property management fee into your numbers. It would be really bad if you find that you are not good at or don't enjoy managing yourself, and now are paying 175/month to a manager.  Perhaps you find that you really do like it, you want to purchase more, but you'll find it hard to expand with a negative cash-flow property (and to convince any family members to go along with you). I'd keep looking. 

I recommend it. I think having MLS access is great to calculate comps. You also get a check at the end of the deal in a lot of situations. Downside is that at least in my state, you have to disclose you are an agent. I think that makes some people nervous that you must know more and are trying to trick them. Disclaimer: I have a license.

OK, so not that exciting, except to me. I need to get the collective computing power of BP together and make a ruling here: A tenant has moved in and is under a year contract. I placed new PEX plumbing prior to move-in. Tenant now requests a water softener (we live in a very hard water area) due to clothes not being clean, stains, etc. The plumbing work will be easy. Lease won't let tenant change anything without Landlord's approval. What is the best response?

A: Landlord has an obligation to provide clean water, suck it up and buy it.

B: Hard water is bad for your plumbing, buy it hopefully to decrease future repairs.

C: Water softeners, like under-sink disposals, ice makers, ceiling fans, love to break and cost you money. The tenant should have inspected the water before signing. Don't buy it. But let the tenant buy/maintain it.

D: Same as C, but don't let the tenant buy it.

So, what do you thing? Feel free to simply vote; or, explain your selection.

Hey Gunnar. That was you! Keep finding those deals.

I am not certain of the rules, but I knew a wholesaler who would assign the contract to the buyer. I never ended up buying from him, but know of some who did. I think the buyer would end up knowing how large was the wholesaler's cut in that scenario.

Hi April, and welcome! It seems your goal is buy/hold. Have you considered renting out the flip house right now? Depending on your bank, you could now or later refinance or get a line of credit and use that to buy the other houses. Flipping is a good way to get cash, but I don't like selling an asset that could be a good rental. My first rental was an REO that was trashed. My wife and I basically lived in it and fixed it up, intending to sell, but we decided to rent it out and take out a line of credit. Now, that money is handy for any down purchases that I need quickly but it is not cash sitting in the bank getting basically no interest. I'm glad I kept it. It'll be paid off in a few years and then be a money generator. Good luck to you.