All Forum Posts by: Brendan F. Nagle

@Austin Walker

No Just flipping won’t show enough monthly income for you to qualify for a loan. If you have enough equity in your portfolio. You could look at some creative finance. Local bank or credit union could pull off cross collateralization. Or maybe a personal/business line of credit will allow you an initial buy. With long term financing later.

Not enough info... But some methods to help is NOI/Cap Rate=Sales Price. Another is comps but with commercial comps may be difficult to ascertain. Example would be 110,000 NOI/Cap Rate= 1.8Mil sales Price. But as stated, not enough info. How are the rents under market? Vacancy, Management fees, Onsite management, Do you have all the Expenses? Are any verifiable. Can you run this level of property. How will you finance it? Owner financing? Good luck on your journey.

This is a new one for me. On a MF property I bought this year. I didn't check the Sex Offenders Registry. Found an adult tenant living at an apartment not on the lease. Because of my initial lack of action and not researching the law about this, 3 months later I am still dealing with this. So far, 2 office people, 1 Deputy, a probation officer and a lawyer have gotten involved. Had I done research before I would have made removal and eviction a contingency on buying the property.

I have had success in IA and MN house hacking. Currently I am living in St. Paul. Feel free to PM me, we can meet for coffee or a beer. The only beware I can say is don't trust anybody else's numbers. Always do your own math. Rent, Mortgage, taxes and Expenses.

@Ali K.

I finished a basement remodel in St. Paul this year. Nord Haus did the work. Did a good job. I did cover the costs once appraisal came thru. But beware below ground rehab won’t count the same as above ground.

My first thought is do #1. Life is good. You have a low risk tolerance and a 15 year note will pay off and the house will be paid for. 

Look into HELOC to pull some equity out and invest in something else. I like rural IA/MN towns. Look for something that would 1-1.5% rent to purchase price. Build a team and put your money to work. 100k goes a lot farther in a rural setting.

Go for it. House hacking is a great way to start. PM me if you want help with the numbers. I have 3 questions that should help you gauge if your ready for this step.

1. What is the current state of the opportunity? How much rehab, inspection, appraisal, comps, is it rented, market rate vacancy rate. Do you have contractor, lawn, plumber, handyman in place.

2. Are you ready for the opportunity? Is your financial house in order, family ok/ready to live in triplex, pre-approved, back up plan, emergency fund for oops or unexpected. 

3. Do you have your why? Big or little this project will have ups and downs. Your why will keep you on task even when the chips are down.

Now if you can answer 3 questions. Put a business plan together. 

@Robert Perez

North Iowa. Find stable towns. Town needs a school and grocery store. Size doesn’t matter. Look for 1% rule if applicable.

I normally like deals like this but this one scares me. Vacancy and Cap EX are too low. What are the seller financing terms 0% for 10 years, no money down?? Great if it is, but who does that. And on top of that, what GC sells for 25% off of market value at those terms. 

Not enough meat on the bone. If buying less expensive properties, you must make good cashflow, or be willing to eat the loss without worry. I estimate with real numbers for Cap Ex and Vacancy you will lose 100+ a month. If that is worth it then go for it. If your budget can't handle it then no.

Missing lots info. 8% CoC is good in my opinion for a cash deal. I would be curious if you BRRRRed it what your returns would look like. Need to know your plan with the property. No rehab and increased 50K in value? Are rents at market value? No property management, even if you do yourself show something there. CapEX and repairs look light. 70 a month for ins??? Is the water self metered and tenant pay? What is the other 250 a month income coming in?