All Forum Posts by: Bonnie Low

You can learn to do pretty much anything on Youtube, including installing baseboard. It's not hard and looks much better than 1/4 round. It's a little pricier, but a much more updated look.

I would not recommend contacting the seller's agent. Remember that, first and foremost, they have the seller's best interest in mind - not yours. I have used a few tactics to find an out of state Realtor. First, look here on BP for a Realtor that is very active in the areas you're interested in. Second, identify a local REI meetup and attend either in person or remotely. There are almost always realtors at the REIA meetings and even if there aren't, you'll have the opportunity to ask other investors who they recommend. Those investors are going to be familiar with Realtors who represent investors, and that is key. Many Realtors don't know how to work with or think like investors and those are the ones you want to avoid. Lastly, do you know anyone in the areas you're looking at? I've always been able to tap my friends and family network to get recommendations. When I call someone I don't know I make it clear that I'm looking into their market but am also looking at other markets and am in the process of narrowing it down. I start by asking how much experience they have working with investors. If they say none or kind of waffle on their response, I'll keep the phone call polite but short. If it seems they do have experience working with investors, I'll explain the criteria I'm looking for and then ask them some very specific questions about their market (average days on market, how many months' inventory, YOY housing values) and then get more specific about narrowing down neighborhoods. For example, if it's a college town and I'm interested in college rentals I'll ask them what neighborhoods to look at. Same for blue collar rentals, etc. All this can be done in a 15 minute phone call. If you like what you hear from them, ask if they would set you up with a daily MLS alert matching your criteria. Most of the time, they offer to do this without you even asking. I live in CA but have worked with Realtors in this fashion from Idaho, Montana and Nebraska. Oh, and I always send them a Christmas card and a gift certificate for a local coffee shop at the end of the year just to let them know I appreciate their time.

While your idea is way cooler, have you considered turning it into a senior housing community? Seniors who are still independent but want to live in a communal environment are a lucrative up and coming market.

Hi, Jonathan - I don't know if the appraiser is trying to screw you - but he definitely sounds very unprofessional to say the least. Were you getting an appraisal to find out how much your property is worth so you could decide whether or not to sell it? In other words your agent couldn't give you an ARV based on all the work you did so you wanted an independent appraisal in order to understand how to price it? I ask because usually the lender is the one who arranges for an appraisal, not the agent. That's the person I would be looking at in this deal - why can't your agent give you a value and does he or she understand this appraiser isn't very professional? I have never, ever heard of an appraiser saying they can give you a value based on what you tell them the inside looks like. That's a red flag for sure. Maybe call the state board that regulates appraisers and ask them what they think of this practice and what recourse you may have.

Hi, Karlo - did you mean to say you have to put 10% down with an FHA loan on a 4-plex? That sounds more like it. I've never heard of an FHA loan charging 10% interest. If so, run for the hills and find a different lender who can get you set up with a better deal! That would be like paying a hard money lender for the life of the loan.

It seems like with this Coronavirus situation dragging on, people are going to be getting rid of their luxury items they can no longer afford or have sitting around that could be cashed in. Have you looked for a good used travel trailer? Depending on how much luxury you're looking for, you should be able to pick one up pretty cheap. If you don't yet have kids, now is the time to take on an adventure like this. Seems hard to imagine that you couldn't get more in rent on your house hack than your living expenses in your trailer. Like they say, 'live now like other people won't so later you can live like other people can't.' Good luck to you!

@John Underwood I've been thinking more and more about the Section 8 play as well. Since the gov't pays the greater portion of rent for a S8 tenant, I'm wondering if there will still be forbearance for landlords who can't pay their mortgage if their tenant is S8? Have you seen anything about the Coronavirus bills that address this? In other words, if landlords who don't have a S8 tenant can avoid foreclosure for non-payment of mortgages, will this still be allowed when most, but not all, of their mortgage is covered by the S8 payment?

We're doing a 75% LTV right now, but we also have a history with our lender so that might be helping us. This is also only the 2nd property we will have a mortgage on currently.

@Soniel Estime it's a tough question. Lots of people who are very successful talk about how they first started out using other people's money and that often came from friends and relatives. But it's a dangerous game, especially if you're not experienced. I'm guessing they want to invest with you because they've seen you have some success and don't know how to go about it themselves. If they lack experience, this could be setting you up for failure because they're unlikely to understand the risks inherent in real estate investing, may not have realistic expectations around returns, and may want to be active partners (which could be ok if they've got a skill to bring to the table). You should get your agreement in writing, which would protect each of you, but it doesn't avoid hurt feelings should something go wrong. If you don't need investors, I'd probably pass. But if you want to help them figure out where else they could invest since they are, after all, your friends, you could refer them to another option like investing in turnkey rentals, note investing or a syndication. Lastly, there may be a way to dabble in a partnership where there's not a lot of money at stake to see what kind of partners they're going to be. For example, let's say you want to buy a property to flip or BRRRR and you have the money for the down payment but not the repairs. Let's say the repairs are estimated at $20,000. Maybe they could split the cost of funding the repairs with you borrowing the money from them at a decent rate of return for them - say 10%, which is comparable to a hard money loan and more than they're probably earning on their money anywhere else right now. That should be no more than a 6 to 12-month transaction at the most and they're each only $10,00 into the deal. It goes without saying you have to run your numbers right (use the BRRRR calculator from BP) but, worst case scenario it goes bad, you could probably get a personal loan to cover their losses if you absolutely had to. These aren't big numbers, you'd be turning it over quickly, and if it didn't work out you aren't locked into a long term relationship with them. Best case scenario it goes really well and you'll have found some solid business partners and kept the relationships in tact.

Hi, Rob! I bet there are some online forums of ex pats in Costa Rica who have done exactly what you're considering. I know both Costa Rica and Belize are very popular for ex pats and, surprisingly, I just read recently that Nicaragua is as well.  Find out what others have done and have to say. My boss' parents sold their home in Santa Cruz CA when they retired and moved to Costa Rica - they're not on the beach - but they love the low cost of living, currency exchange rate (their dollars go further), stable government and good, inexpensive health care. Compared to the cost of retiring in CA, it sounds very reasonable.