All Forum Posts by: Brendon Botelho

@Rich Hupper did you ever get any more info on this?

@Jake Thomas Was scheduling conflicts between being an agent and working a 9-5 a huge obstacle for you while you were doing both? I certainly don't mind putting in the time and effort, especially since working as an agent will be much more enjoyable than my 9-5 and will seem more like a hobby than a chore (figuratively speaking), I'm not by any means saying being an agent is easy, but when you have a passion for the field, it tends to not feel much like work.

@Mike Hurney I know the right answer to that question is to ask a real estate agent what rent goes for, or look at ads for similar rentals in my area, or even ask the owner of the house next door what he charges, but the intent was to get a really quick, raw number to see if renting would even be a possibility. If I'm thinking $1,500 and he charges 750, for example, that's a good indication that my number is way off. I just moved to this area 6 months ago so I do not know the rental market like I do back home. Regarding the 1031 exchange, aren't they only beneficial if I were to sell the house for a profit? I am concerned with taking a loss on the home since we only purchased 4 months ago so, from what I understand, a 1031 exchange would not be beneficial.

results? @Matthew Forbes

Thank you @Jonna Weber! Thank you all for the responses and the insight. It seems like the best choice based on your responses are to sell the house even if we take a loss. I didn't think about repair costs when we go to sell in 5 years. My goal is to buy and hold long term, but I would not want to hold this one as it wouldn't cash flow that great. Back in my hometown, I have been finding 3-4 families that have been cash flowing (accounting for expenses the way Brandon told us to in his book and using the calculator on here) over 200 per unit on a minimum. Keeping this house long term just wouldn't be worth it. I was just trying to figure out a way to get out of it without taking a hit but it seems like I need to just bite the bullet on this one and move on.

Good Morning BP,

My wife and I moved from Massachusetts to Virginia last summer for a job opportunity. We bought a house 4 months ago but just found out we are expecting. She is currently in grad school and will be unable to work as of August of this year until graduation Dec 2018.

After analyzing all of our options, we determined that the best decision, both financially and emotionally, is to move back home to have family support with the baby while house hacking a 3 or 4 family as she finishes school (my RE goals is to BRRRR properties until I can supplement my salary).

Finding a job for me is no issue as I am a Civil Engineer. The issue we are faced with is trying to sell our house without taking a loss. We could sell if for what we paid, but then would be stuck paying agent commission (we used FHA with 5% down). We are in a prime location near a Navy base (20 minutes) as well as a Navy Shipyard (5 minutes), and 30 minutes from the Virginia Beach boardwalk. The house next door is actually rented out by 3 sailors which leads me to this question, would you guys consider renting out the house in the given situation? I'm debating on asking the sailors what they pay for rent so I can have a decent idea of what I could charge, but I'm not sure if that's appropriate to ask? The houses are identical expect for the fact that ours is a lot nicer and completely rehabbed.

Here are the numbers:

Purchase price: $160,000

Mortgage: $1030 (taxes and insurance included)

Proposed rent: $1,500

Property management fees (10%): $150

Cash Flow: $320 (max) - The house was completely rehabbed when we bought it so there should not be any major expenses, but I would still plan on setting aside at least $150 for small expenses/vacancies.

My thought is this: Even if I broke even or made a hundred bucks or so a month, its better than taking a $10,000 hit, right? My best friend lives 10 minutes away and could be my "boots on the ground"/Property manager. I would plan to sell the house in 5 years. Need your advice/opinion please!!

@Dave Foster I have a question that is a little off topic regarding flipping. You mentioned that you get taxed up to 40 percent of the profits of flips. Now, is this at closing when selling the house, or at the end of the year when you do your taxes? If its when you sell the house, do you also have to pay additional state and federal taxes at the end of the year on these profits? Hope you can shed some light on this!

Just a quick background:

I'm originally from New Bedford, MA but moved to Virginia last year for a government job opportunity. It wasn't until I moved and picked up Brandon's The Book on Rental Property Investing that I realized I wanted to quit the rat race and invest in RE. My wife and I plan on moving back to New Bedford 2 years from now after she graduates and becomes a Nurse Practitioner. At this time, I will be able to jump into the RE game with 2 feet as she will bring home the guaranteed income (sugar mama?). Our intentions are to house hack in order to keep costs low while we grow our rental portfolio.

My problem is, as I listen to these podcasts and read some of the discussions on here about folks starting off while working a 9-5, the voice in the back of my head keeps telling me why wait? My reasoning is that 1) there aren't a whole lot of multifamily properties in this area and 2) I am not familiar with this area. As some of you may know, the multifamily rental market in New Bedford and surrounding areas are filled with inventory and I know the area like the back of my hand, being able to look at the house on the map and know exactly what the area looks like (A, B, warzone, etc).

I have analyzed and found a few potential deals that would cash flow really well and I would have my brother-in-law as boots on the ground to look over the property until I move back BUT, my wife and I don't have the 20 percent to put down because we bought a home here in Virginia. We would have about 5-10 percent to put down depending on the purchase price. Since the home will not be our primary residence, are there conventional loans or any other types of loans that would allow us to put 5 percent down on the rental? Any suggestions would be awesome! I really don't want to waste the next two years picking up sweet deals when I could potentially move back with 5-10 units under my belt! Thanks!

Emiliano Dias Yea New Bedford can be really spotty but you cannot go wrong with the far north end/sassaquin area especially as you approach the acushnet line. There's actually a house across from the pond for sale that I would highly consider flipping if I was back home. I'd like to focus in that area as well as the west end since that's where I grew up and know extremely well (buttonwood park area). For mutlifamilies, there are so many for sale that have the potential of earning 'sweat' equity and start implementing the BRRRR strategy that you truly can't go wrong. The plan right now is to learn as much as possible and then in 2018, quit my job (my wife will be a Nurse practitioner, allowing me to do this) house hack a 3-4 family and jump in with both feet into investing/flipping in New Bedford. I already have my MA real estate license, so I'll be able to buy and sell for clients while looking for my own fix/flip/BRRRR deals simultaneously.

Can someone clarify where you would put your mark up on the deal? Does it go on the assignment form? When does that get paid to the wholesaler? At closing?