All Forum Posts by: Cassidy Burns

Hi @Thomas S. can you explain "dead equity" to me?  

Hi BP, 

Extremely excited/pleased with how my last 2 renovation projects have gone.  Here are the numbers on the most recent one:

Purchase Price: $12,000 cash

Paid sellers closing costs: All in $12,981

Renovation Supplies/Rehab: $3,489

Total All In: $16,470

Rent: $615/month

ARV: $45,000-$50,000

Still haven't decided if I want to do a HELOC on this unit or not in order to purchase a few more rentals. Overall very pleased! Plus I think I found a contractor that is going to be very reliable, FINALLY!

Hi BP,

Quick question, if you purchase a rental property and inherit 2 tenants, how is the security deposit handled?  Is the seller responsible for transferring the security deposit to the buyer or is the buyer now liable for that deposit for when they move out?

Thanks!

@Ozzy Sirimsi @Ned Carey great input.  Thank you.  I would love to sit down and talk more about the location in general.  Do you have recommendations for a good real estate agent in the area that works with investors?  I would prefer to purchase a 3-8 unit complex.  Mostly my business focuses on cash flow but getting in an appreciating market would be icing on the cake.

I look forward to hearing from you both.

Hi BP,

I currently own, 6 properties in a small town of southwest Va, Covington, Va.  The returns are great, and I am very familiar with the area as I grew up there and my mother currently still lives in the area so I have been very pleased with that end of the business.  UNFORTUNATELY, the people/team that I am generating there just seems to be average and with managing out of state it becomes very hard/frustrating/almost not worth the hassle. 

I am looking to start investing closer to my proximity within an hour from Washington DC.  I currently work as a real estate agent in the city and own 1 property that I am house hacking.  Does anyone have any recommendations for potential areas that are within 1 hours driving distance from the city that are good for buy and hold?  

Interested to see what people say!  Thanks in advance BP.

Hi BP,

I am starting my first flip today. I purchased the property under my name, but just listened to Amanda Han's tax benefits podcast and realized that I should have purchased this under an LLC to help mitigate the taxes that I pay on the potential profit. Is it to late to transfer to LLC? Any advice?

Thanks!

@Gus Ross this is very helpful.  Thank you!

Hi BP, 

I am looking at buying a single family home as a buy and hold investment property.  The house is 90% rent ready.  The remaining 10% is there is a little mold in the bathroom.  The water has not been turned on in 1 year so I am unable to see where the leak/moisture could be coming from.  Is this a deal breaker?

Thanks for the help!

Hey @Christopher Phillips, both tenants are on month to month leases which is what I am transitioning all of my rentals to.  I feel as if I have more control when they are on short term leases and if I manage properly they will want to stay!  

But I did ask the sellers to raise the rents before purchase and I would pay full price so now I am waiting on their counter offer.  Any other suggestions are greatly appreciated!

Hi BP,

Just curious how everyone is structuring their numbers??  Are you basing it off of the current rents being collected?  Or are you using the numbers that you will eventually raise them to due to being under market?

Example:

Duplex: $45,000 purchase price off market.  

-2- 2 Bedroom/1 bathroom units: Both have been occupied for 6 years @ $350/side.  $700 total.

-Current cash flow: $275/month 

-Market Rent: $550-600/month per unit.

-Unit is in good condition and wouldn't really need any work following closing.  I offered based on the current rents @ $38,000 and they will not budge off of $45,000 and are going to put it on market at the beginning of June.  Do I just come up to their $45,000 due to the projected numbers ?

Thanks!