All Forum Posts by: Brian Adzadi

@MatthewPaul Aren't most old building standards automatically grandfathered in if a new one is established? If every house has to be up to code then there will be a crap load of houses that would have to be torn down and rebuilt. My house was built in 1956. I know for sure there is a laundry list of stuff that are not up to code but would not deter me from buying it unless there was some immediate danger. Find new buyers and keep it moving.

@Rene Miguel

GreatSchools.org is what I use as well. 

@Jayden Grissom There is an online degree program called The School of Hard Knocks that most real estate investors go to. Its an excellent program, and the best part about is that its free. No need to take out financial aide or student loans for it.

@Jory Sturdevant There is nothing wrong with your plan. Its pretty sound to me. As long as you have bills going there, you can show that it is your primary residence. What I would suggest though is that if the unit you are going to stay in is a 2 bedroom. I would try to rent out one of the rooms to a roommate to get some extra cash. Your roommate will love you because you are barely there since you travel most of the time for work. If you really travel that much for work, even if the unit you will stay is a 1 bedroom, I would still rent it out. Try to milk cash as much as you can. LOL.

@David Hollenberger It all depends what level of experience you have with real estate and how much capital you have to withstand the ups and downs of doing a rehab (Trust me, there will be a LOT of ups and downs, more downs sometimes). Personally, I would avoid this like the plague. I suspect there is only more underlying issues waiting to be found once you start breaking walls down. If you don't have that much capital or a good team of contractors. Save this one for the professionals.

@Rene Miguel You are right. Property Taxes do eat up on your profits. The only time it in my opinion it is ok to pay higher property taxes is if its an in demand area or has one of the best school districts. Tenants are willing to pay top dollar for good, safe, upcoming, or in demand neighborhoods. Tenants are also willing to pay whatever they can to get their children into good districts. Those two scenarios make it where you can charge nearly whatever you want to offset the cost of higher taxes. Outside of that, personally, its not worth it.

@Antonio Salgado So why not take a loan out on it? Save yourself the headache of paying 38% in taxes, penalties and fees on the 98K? The interest you pay on the loan goes back to you.

@Dawn Vu You are going to have to give us few more details for us to start analyzing. For instance, how much are planning on placing for a down payment, what is the yearly property tax on this 4plex, how much do you guess insurance will cost. Will you be the one paying for water/sewer. I just used some generic numbers to just see what your monthly mortgage would be and compare it to the amount of money you will be getting from each unit. At the end of the day, you will not be cash flowing that significantly with those figures. If you ever do get the property, I may rethink the amount of rent I would be charging each unit.

@Mekail Faquir If you are going the conventional route with purchasing a property then NO. You cannot take out a loan from Bank A to use as a down payment for Bank B's mortgage. Banks are now so thorough with their due diligence that you cannot lie about it if you wanted to. However, there is another way. If you have a 401K, 403B or any kind of retirement account and you are not going to be retiring for the next 5 years. You can take out a loan against your 401k to put as a down payment. It is technically YOUR money, so banks are willing to accept that as a down payment more than an unsecured loan from another bank.

@Nathan Marden Personally for me. Any level of Meth is a BIG RED FLAG. You have kids under 5 years of age. You don't know how that will affect them in the future. Don't risk it. Find somewhere else.