All Forum Posts by: Brendan F. Nagle

@Geoff Antone

I have two questions.

1. Back up plans? If flips are to thin. And you being new to buy and hold... what is your back up plan if you buy on high end of the market?

2. Does buy and hold fit your goals? It shouldn’t be about what’s easiest. If your goal is 10 houses. Great. If not, figure out your goal first.

@Kaycee Siltler

Congratulations on the new investment. First question is does your daughter have a w-2 job. If not, You will probably be stuck with commercial rates for the refinance. Most banks won’t allow her to be on the loan. Now if you get passed this hurdle. How do you split up ownership? Issues that arise, maintenance, management and profit/loss on the monthly cash flow?

@Dave Foster

40-50 would be the gain. Rural area. I bought in ‘10 for 14. Gut job including foundation work. Live in brrrr. Refi in late ‘11. Brrrr’d out to 45600 for new loan. Paid off partner, construction loan, and my original investment. Rent out till now. That’s why it’s a smaller number. CF was light but it made sense then to get the cheapest rate.

If I sell it. Does the value go back to original purchase? Or just my last refi? Because capital gains and depreciation recapture would make the gain much smaller.

I have a 5bd 2ba SFH in Iowa. Re-rent it or Sell? It was my first successful attempt at real estate. I have had the same renter for 7 years. But situations change and I expect them to move out this summer. I have a 15 yr note at 3.25% that I am about half way thru. So a refinance or HELOC to get the equity doesn't work, interest rate would double. New rent would be 650-700, old renter I allowed the rent to get under market value. PITI is currently around 475. Let's assume 5% each for Vacancy and Cap Ex. Maintenance 3% and I self manage.

On the sale side, I assume I could net 40-50k based on current value and comps. But I would need a 1031 exchange to keep from paying Capital gains. I do have some emotional attachment to house. It was my first live in BRRRR. It has met the original goal of paying itself off as fast and as cheaply as possible.

So forum friends, please help me decide to keep or go. With some attachment to the home, its hard for me to be objective. It was a gut job when I bought it and now its a nice home. 

@Nick Farrell

I bought my first SFH with my Dad and we own a Duplex together. It has been a mostly enjoyable experience. I wouldn't trade the time together for anything. Please keep in mind a few things. A little planning that could save you some future arguments in the future.

1. There is about 20+ years difference between you two. His investment goals and yours may be different. Have a business, have exit plans and buyout prices in case the business relationship doesn't work out. Every couple of years redo the business plan, people's goals change. 

2. Figure out who is in charge of what. Rehab, management everything... We had several arguments that ended with I am Dad and I decided this. 

3. This partnership can affect your relationship with other family. Renter came by the house, Heater went out Christmas Eve on rental, Tenet called when Dad at work.

4. Estate planning- I have siblings. Who owns the property and at what % when Dad or I pass on?

5. Tax issues. Simple partnership, LLC, S corp? This should be hammered out before you purchase. Tax and legal issues can happen if you don't.

Even with these issues, I still enjoy a good working relationship. We plan on getting another small MFH this summer. But our goals and exit plans need to be written down and agreed to before purchase. A little planning can save a lot of headaches later.

I started my RE journey at 24. in 2010. After a refinance and a 15 year note in 2012. My first SFH property is 7 years into a 15 year loan at around 3.25% I can't buy that kind of loan now. By the time I am 40ish I will have a paid off rental. My original down payment would have been the same as a 1 week Mexican vacation for 2 people. Delayed Gratification then will reward in the future.

@Ashley Wolfe 6 months later. Think of it as getting it ready costs. Don’t risk a bad review over old furniture. Once you have systems in place the money will come. Fund your reserve for the property. Have cleaning crew and backup, for quick turnarounds with guests. Good luck.

Options are limited. Eat it, keep the sale. Push the close, possibly lose the buyer. Work a deal out with the buyer, pay on Tuesday for a Hamburger today. I doubt a bank is going to allow for a future not built garage before close, too many contingencies could go wrong.

Best option. Sell for 134k. Then get a Promissory note from the buyer for 3k, if the garage is finished by xx date. Get everything in writing. You have promised already to build it. and they are good for the 137 total. This would be paying 3k to get it done now than for you to have no incentive on when the garage is finished.

The event last night was cancelled. Jordan was unavailable. Have a safe weekend everybody.

@Tony R Fox Get a job. Will need w2 income. Then research rules for fha/first time home buyer in your area. Buy a 2-4 plex, with as low money down as possible. Close to work would be nice. House hack, while learning how to be a land lord. In 1-2 years refinance or get a heloc loan. You now have the money to start your next deal. Learn and grow. Best of luck.