All Forum Posts by: Christian Efseaff

I unfortunately won't be able to make it but want to encourage more events like this as I will gladly attend. See you next time!

@Larry Smith

With a 1912 house, I would certainly budget for higher-than-average repair costs simply due to the fact that it's old. I wish I could give you a number but I'm not experienced enough to do so.

One last thought on CapEx - with homes as old as this one, be sure to have EVERYTHING inspected and have an inspection contingency in your purchase offer allowing you to back out if needed. Is the plumbing lead or iron pipes? Is the electrical cloth-insulated? Is there lead paint? Asbestos? These are things that are not only costly to replace/fix, but it also may be something that could disqualify the property from Section 8.

I don't have experience with Section 8. In my studies, some swear by it while others avoid it like the plague. I'm not able to offer any insight there, sadly. Just know that it will be more work than normal whether it's from the gov't side (paperwork) or the tenant side - the extra rent and security of that rent comes at a cost.

As far as the numbers go, my personal philosophy is that Cash Flow is the first and last measurement I consider. Of course, there are always other things to take into account, but since you're basically breaking even while house hacking - it looks good from that vantage point.

I certainly don't want to dissuade you from doing the deal, but I read this article recently and this thread reminds me of it: https://www.biggerpockets.com/renewsblog/2015/03/0... There are plenty of other articles on why one should buy homes prices that cheap too though

Lastly, don't forget that we are (likely) approaching the peak of the market. Again, I don't know anything about Toledo, but since you will likely want to refi out of that FHA loan eventually, you'll have to do your due diligence to make sure there's enough equity gain to facilitate that.

Good luck!

UPDATE - just saw that you didn't get the house. No worries! Onward and upwards

@Larry Smith , @Daniel O.  gave the best advice in this thread. Also consider what @Chris Gibbs said about CapEx. A roof is a roof so factoring in 8% won't always give you the number you need.

Check out BP's book on Estimating Rehab Costs if you want a deep dive. It has numbers in it too.

As far as collecting rent, a PO Box is good if you don't want your tenants knowing where you live, but you're going to be stomping around right above their heads! Just have them drop the check in your mailbox or something. Remember the 3 F's...be Firm, Friendly and Fair. You'll be just fine. 

Best of luck!

For anyone coming across this after October 24th, 2016 - I believe they have changed things so that credit cards with a balance of $0 are not included in your DTI calculation.

Also, note that the guidelines instruct lenders to look at credit utilization history as a factor so if you've been carrying large balances and just paid everything off, they may take notice. That doesn't appear to be a DQ from the guidelines perspective but, as mentioned in this thread, each lender can be more strict if they want to be.

Source: https://www.fanniemae.com/content/guide/selling/b3...

Am I correct here @Bill Gulley  @Nicholas B.  @Charlie Fitzgerald  @Brian Gibbons  @Russell Brazil  @Shaun Weekes  @Lynn McGeein ?

DISCLAIMER: I am not a professional in this or any related field. I advise everyone to seek professional guidance before taking any action.

Hi @Andrew Giancola ,

I'm going to be relocating to the greater Tampa metro area and am always looking to network, strategize and be a better investor.

If interested, feel free to send a colleague request and we can chat to see if some of our goals may be aligned.

Hello Clifton,

Yes, it is San Marcos, CA which is in San Diego County and you are correct that it is a contract with the city, not a piece of real estate. 

Feel free to PM me if you're still interested.

Thank you!

Long story short, my boss owns a dealership in San Marcos and was forced to move. In return, San Marcos gave him a Relocation Assistance contract. He used it and has $600k left on the contract. It can't be redeemed for cash so we need to find a buyer to liquidate that asset. 

It is fully transferable to any party, provided that party produces tax revenue for the city of San Marcos and the location of the project(s) is within city limits. 

It can be used as "financial assistance in the form of fee waivers and financing of public infrastructure requirements". An example of public infrastructure requirements are things like re-paving a sidewalk, beautifying a median, etc.

Please respond if you or anyone you know has interest in purchasing this asset at a discounted rate. Referral fees may be given where allowed by law.

Hi, I'm Christian.

I've been reading books, listening to podcasts and saving money like crazy for the past year. I know the basics and am just about ready for my first purchase. Before that happens, I want to experience a rehab because it's something I just don't know well and would really like to understand better.

If you're willing to meet with me a few times per week, share your strategies, thoughts, spreadsheets, contacts, etc with me - then I will put in whatever amount of hustle I can offer as well as $500 cash once the project is over (you've either closed on the flip or rented the property out, whichever is your goal). I don't expect to get anything for free and want to make sure I offer something of value in return for your time and energy.

I know it's unorthodox, but I'm hungry and will do anything to not fall victim to analysis paralysis. Let's rock and roll!

Oops! Sorry @Alyssa B. ! I meant to type "ARV" which stands for "After Repair Value". It's how much the property will sell for once all repairs/upgrades have been completed.

A common way to do this is obviously new paint, floors, upgraded counters, etc but a less-popular way that can really pack a punch is room conversion/addition. 

Try looking for a home with a "loft", "study", etc. and see if you can turn that into a bedroom. OR, what if a house has a large attic and a bedroom could be added up there? 

Let's say it was a 2BR when you bought it. Purchase for $100k, put in $40k to fix and now it's worth $200k. That's great! But what if you converted the "play room" to a bedroom as a part of that $40k rehab? Now it's a 3BR and those are going for $250k! Boom!

Good luck :)

@Alyssa B. check out the above reply. @David Faulkner  and @Kiersten Vance  have some great insights. Not sure why it wouldn't let me tag you so sorry for the extra post!