All Forum Posts by: Billy Daniel

Whether you buy the house or not, you're going to have issues when you try to sell.  You'll need to contact an attorney with the best way to proceed.  You also want to remember the name of that contractor...

Don't allow the security deposit to take the place of rent.  For starters, I'm pretty sure it cant legally.  If they aren't paying rent, just proceed like you would any other month they wouldn't pay.  You might remind them that an eviction will be on their record and show up in future rental application screenings...

Start with talking with a lender about getting pre-approved.  Explain your plan.  After that, start analyzing properties.  My advice would be 5 per day so you can get quick and efficient at it.

Find a market you like.  Obviously, you'll be looking for areas with large health complexes.

Stay on these forums and buy a book or two to educate yourself on buying and holding property.

Ask questions and look for answers from those who have been there!!

Good luck and I'm excited to see your success!

Hey BP! One of my goals for this year was to start my own REIA. I've finally set a date and location in Russellville, Arkansas and I was hoping to get some tips from others who have started their own groups. Did you create an agenda? Did you make it open to the public? What did you use to get the word out?

Any and all tips would be greatly appreciated!

That's not uncommon right now.  With interest rates where they are, it's difficult to find properties that look good on paper from day one.  Keep searching and eventually, something will pop up!

We've bought almost all of our properties with an LLC. You won't be able to use traditional mortgages like FHA and VA, but you can use commercial loans all day long. They normally require a larger down payment based on the property though.

If you're using an FHA loan, I think you'll have to live there for a year as a primary residence.

As a pure investment, it doesn't look very appealing.  You have $300/month to cover all expenses including repairs, vacancy, capex, and any mgmt fees.  Does your mortgage payment include taxes and insurance?

I would allow a tenant to repaint a room at their expense with a lease agreement addendum.

Tenant bears the cost of labor, materials, and any damages that result from the work.  Tenant will us (insert specific color here) and work will be completed by X date.

Of course, if you add things to your lease you need to consult with state and local laws to make sure it ok.  In my opinion, a properly vetted tenant will want to make it a home they love, and thats ok.  A happy tenant will take care of it and stay longer!

I'm confused why $150k is very attractive on a $250k property for the seller.  Cash or not.  If it's renovated and priced according to market values, it won't last very long.  There's still a shortage.  Since you said renovations are close to being finished, I'm assuming it looks like a construction zone which will deter some buyers...for now.

I don't think positive cash flow is necessary while you are house hacking.  You do want to make sure it makes sense if it was fully occupied with tenants though.  You don't want to be in a situation where you have to move and now it's negative at 100% occupancy.

It's unrealistic to buy a triplex and expect positive cash flow at 66% occupancy on day one, in my opinion.  The caveat being that it required a great deal of renovation.

Markets are incredibly uncertain right now.  There's an equal chance that you pass on the deal and end up saving yourself a headache of a bad buy and you buy the deal and enjoy the investing lifestyle.  If it were me and I could have a tenant-subsidized mortgage payment, I'd take it (assuming paragraph 1 is met)!  Good luck!