All Forum Posts by: Bryan Clark

Have a team with 2 other partners in which we will each throw in "X" amount in for start up capital. Plan to purchase and rehab rental 1 with cash. In order for us to get money out for rental 2, what is best? Line of credit from rental 1? Deferred financing? Cash out refi? Also, best practice to create a LLC for us? Thanks for the guidance!

thanks for the advice all! I ended up passing on the deal. Seller wasn’t willing to come down and too many variables with it being such an older home. The search continues!

@Lesley Resnick thanks for the reply!

1. They are on separate plats

2.  Insurance is right, I work for an insurance company :)

3. Tax is the max charge for the county so just planning on that.

4. Area has pop of 8k. Small Town Indiana but a large number of people looking to rent

5. I will manage since it would be first one. 5 minutes from my home.

6. Roof 10 years ago, AC/Heat 3 years ago

Rachel, thanks for the thoughts. Roof is 5 years new...furnace, Central air, water heater all 2-3 years old. One concern is that all the walls are plaster still and haven’t been dry walled so I’m sure a lot of what’s between the studs is out of date. That might be the very reason to pass on this house and find something newer?

Frank, each building has its own address and pays separate taxes. Both labeled as a single family home. Both have separate gas lines, but the “apartment” gets its water, electric, etc from the main home. So I don’t think zoning is an issue here? Sorry for the confusion!

Everything is on city utilities. What would be the advantage of re-zoning it for multi family?

Andy, how would you suggest to get it for less than 20% down?

First post on BP! Looking help deciding on my 1st deal. 3bed/2bath 2 story Home is older in an Indiana rural community.  Built in early 1900s but have had all updates and well taken care of.  Nothing but minimal cosmetics needed.  Previous homeowners converted detached garage into 1 bedroom apartment/building that is currently being rented @$400/mo. It’s zoned as a single family home now. Main home should pull in $800/mo due to other rentals/apartment pricing in area. Home location has nice exposure. Sale Price: $100,000 (realtor thinks appraises around $115k)....20% down ($1,900 closing costs)....$80,000 mortgage....$450/mo payment Annual Income: $14,400 Taxes (at max) is $2,000/yr.....Insurance is $800/yr.....$1,200/yr reserve for repairs Net income: $5,000/yr Should I go for it? Thanks!

Mike, thanks for the response! I believe it is but I will double check. I know it has its own property record, address, separate taxes and all. So I am assuming it is then? Also, from your experience, do my numbers make sense overall? It meets the 1% rule and I’m planning on buying and holding. Thanks for your input!

Anyone? ha