All Forum Posts by: Brad Klock

@Gabriel H. Gaytan I have a goal of owning 20 units free and clear then build up from there if I choose too but I’d like to put more under one roof. I have a duplex already and a few sfh. Just tired of having to worry about multiple sfh and even though my rentals do well and there hasn’t been too many issues. With the market where it is right now where this house is I’m just not sure if I should cash it out and take the profit or just add it to my rental portfolio is all

@Nathan G. I don't need the cash I'm just looking at that profit and thinking I can hopefully take it and buy bigger properties and make more in the long run. I have an amazing relationship with my bank (bank manager even came to my surprise birthday party) but I want to go bigger and in turn need a bigger LOC or quick pay down of the existing loans to make my LOC bigger. Last time I sold one though even though I made a nice profit I felt like I should have never sold. Even though I took that money and bought another one. Sellers remorse I guess but hard to pass up a 30k influx of money also

@Steve Vaughan thank you for the reply. I guess where I'm struggling with this is I know I'm good to go with just holding it and renting it. The town it's in is not going to appreciate and is at its highest at this moment. It's crazy the prices I'm seeing for the product people are putting out. Currently I have all my rentals on 15 year mortgages and owe around 70k. I'm trying to build either a big line of credit or cash on hand so I can hopefully make bigger purchases. I'd like to get more units under one roof. The struggle with whether to sell it is I could pay down that debt and own a few more free and clear and get lines of credit on them to boost my purchasing power. Or just do the BRRR that I've been doing and get my money back and add a little more to my LOC with the equity that would be left over. The struggle here is real

So I'm having an issue figuring out what to do with a property I own.  I purchased this 4 bedroom 1 bath home for $8,500.  with the remodeling costs I will finish out between 28,000-$30,000 all in.  I sold a property two blocks down the street last year for $60,000 and this one will be much nicer so I'm figuring I could get between 65-70,000. I'm looking at profiting around 35,000 then pay the tax man.  I was asked by a friend to rent to his son last month, but now they are talking about wanting to rent to own it which I have never done before.  I could rent this house for about $700/mth.  I currently own 6 properties and the inventory for properties in my area is very low at this point which is driving the prices up ridiculously.  I have a goal of having 20 units renting and feel on one hand that I should have never sold a property and am struggling with whether I should sell this one or keep it and just rent it.  I did some math last night and it would take me about 12 years of renting it to get the profit back out of it that I would make selling it outright.  Any advice would be greatly appreciated on this one.  Like I previously said, I have my 20 unit goal and feel that if I sell then I'm not building towards that goal but at the same time 30K is hard to pass up.  My other dilemma is that when I sold that last house I had to pay Uncle Sam which I am not a fan of for capital gains tax.  I have read about the 1031 exchange, however I have never attempted to use it or how to go about it.  I'll read more on that and figure it out.  Any advice or guidance on what to do here would be greatly appreciated.  

Ok, so I have decided to rent it to them on a 6 month lease until he can finalize his divorce and they get their financing in order.  Then they are going to purchase it.  I wouldn't even rent another place to my other cousins because I don't want to mix business and family and I wouldn't rent it to him except they want to purchase it.  Thank you guys for your responses.  

Ok so this is somewhat complicated but I'll try to be as descriptive as possible. I bought a SFH and remodeled it. All in I am sitting at 27K (4 bedroom 1.5 bath) turned out beautiful! So I started a cash out refinance and was going to rent it out. The plan was to take 28K out and get a LOC for 30-40K to purchase the next place. The rent was going to be $600 + utilities. Now is where the curveball comes into play. My cousin (who is like my brother and very reliable and pays all his bills on time) wants to purchase it. I set the selling price at 68K, however since he is not divorced from his wife (they have been separated for around 4 years) the bank could not take his income into play because he is still technically on his first house mortgage. His girlfriend has never purchased a home and only qualified for around 50K. I am considering letting them get a mortgage from the bank on 50K and having a second mortgage for 20K that would be paid to me. Or possibly a RTO situation, however I am not sure what would be best at this point and exactly how to go about it. If I hold a 2nd mortgage I would get 50K at closing which is only 8-10 less than what my LOC would be for and then I would finance the 20K as a 2nd mortgage over the next 10 years. Which sounds nice because I have all my money back plus more to go buy more properties and still have the income of the loan payback each month. Someone please point me in the right direction here because my brain is cooked. I have never done this before or a RTO for that matter so I am in desperate need of advice. Thank everyone in advance!

I purchased it with all cash so I am not really sure about financing it. Sorry!  Good luck!

I do allow pets in my units.  I charge an extra pet deposit of $200/pet and then charge an extra $25/mth/pet.  Knock on wood, thusfar there has not been an issue.  Alot of people are looking for pet friendly apartments so it only made sense to allow them in my area.  When the last people moved out of the apartment, I went in and inspected the apartment and there was no damage caused by their pet and they got their entire pet deposit back.  Hopefully it stays going well.

I just bought one in November and I got it for $25% off the asking price.  You do have to use a realtor to put the offer in, however Fannie Mae paid all the commission fees.  I also used their title insurance company and was very reasonable.  

Congrats on being debt free!  That's a great feeling!  I have credit cards that I use every month but I don't put more on them than I can pay off at the end of the month.  I also put all my materials on my Home Depot card and take advantage of the interest free (12-24) months.  I am doing a flip at the moment where I will put about 10 K on my home depot card with the interest free, but I will pay it all off once the house sells or I refinance it.  Good luck and congrats!