All Forum Posts by: Cody Lindstrom

Oh we signed up for RentRedi through BP.  So far so good. Easy program for our tenants to make payments online. Only Con is that there is a $1.00 fee for them to process the payment online which I wasnt pleased to hear about. I adjusted their rent down $1.00.  Rentredi is charging me monthly so I didnt expect my tenants to have too pay anything extra to make a rent payment 

Quote from @Cody Lindstrom:

It's official. Our journey started in August of 22 with research and education, home searching and decision making. It is a difficult time to buy based on the interest, but on May 31st, we were able to finance a nice ranch style home in our area at 5.75% with a VA and keep our existing home to rent out, which I believe, qualifies us as official landlords and RE investors!!

The new home is a '76 ranch style in a great area right down the block from a grade school, and across from the golf course and a recreation facility. It's currently a 4/1 with an unfinished basement, with each floor offering about 1150 sqft of living space. We will live in and remodel the new purchase over the next two years. We plan to do most of the work ourselves. This will give us time to work out kinks, determine costs, timelines and develop skills and experience in remodeling. After we are finished with the project, we will decide if we want to sell or rent this first property.  My hope is that the rental market is still as strong as it is today. Wish us luck on Property #1! 

Thanks for all the education BP Fam! 

 How is it going? Well, we're in day 42 since closing. We entertain on the weekends so our band keeps us off the project at least 3 days a week. We have made some progress though. So far we took out a living room wall to expose the stairway to the lower level. The structure has Fink roof trusses so we lucked out bigtime. We've taken out the popcorn ceiling in the 4 bedrooms and bathroom and skim coated, sanded smooth and painted. We took out the wall between the bathroom and small bedroom so we could create a large bathroom with a walk-in shower and stand-alone tub. Shower is complete and we are moving onto finishing the plumbing and tile for the rest of the space (just waiting on fixture decisions and arrival so we plumb correctly). Flooring in the last two bedrooms is complete. Once we remove the popcorn and smooth out the kitchen, dining and living room ceilings then we can finish out the floors and order the kitchen. New doors will be installed soon as well. I'd say we're moving along nicely. Our goal is to have the upstairs pretty much wrapped up and one spare bedroom framed, and sheet rocked before the kids show up for the holiday season kickoff (Thanksgiving). Still having fun and my wife is still here haha. Happy investing.  

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It's official. Our journey started in August of 22 with research and education, home searching and decision making. It is a difficult time to buy based on the interest, but on May 31st, we were able to finance a nice ranch style home in our area at 5.75% with a VA and keep our existing home to rent out, which I believe, qualifies us as official landlords and RE investors!!

The new home is a '76 ranch style in a great area right down the block from a grade school, and across from the golf course and a recreation facility. It's currently a 4/1 with an unfinished basement, with each floor offering about 1150 sqft of living space. We will live in and remodel the new purchase over the next two years. We plan to do most of the work ourselves. This will give us time to work out kinks, determine costs, timelines and develop skills and experience in remodeling. After we are finished with the project, we will decide if we want to sell or rent this first property.  My hope is that the rental market is still as strong as it is today. Wish us luck on Property #1! 

Thanks for all the education BP Fam! 

I think you came to the right place.  BP has a wealth of free info from investors at every level in the game.  I'm learning daily. 

Just starting and defining and refining my goals

Welcome.  There's a firehose of info here, get ready to get soaked haha.  I've learned a ton from BP just in a short couple months.  listen to the podcasts. 

Quote from @Ke Nan Wang:

Our model has been buying lots and build new constructions. Much less competition on the vacant land market and you can always pick up deals when the market cools because land owners are eager to cashout the land that's purely a liability to them and they have no intention to build in the near future. 

New construction is better than remodel because much less surprise when doing the work and you get a brand new house with almost no maintenance and best insurance premium for the next 10 years. Then you sell the house at year 10 and repeat. 

 We've talked about doing this.  If the cost of rehab is about the same then we may as well build new construction 3 plex or 4 plex's 

Quote from @Cody Lindstrom:

Quote from @Chris Webb:

I would ask what are the supply and demand fundamentals telling you. In your market what does the supply look like? Demand might dry up a little, but it will not completely evaporate. What is the supply in your market? Oftentimes the media does not tell this, other, side of the equation. I see supply dropping, which will raise prices not the opposite. If you see supply increasing in your area and demand remains unchanged, then yes prices will drop. But look at the YoY stats for prices over the last 6 months. with decreasing transactions prices are going up! Why?

Good point.  This is a tertiary effect of rate increases, sellers may wait it out too and therefore decrease supply once again haha. hadnt thought of that one yet.  I was just excited to see some decreases in prices for the properties already on the market.  damned if you do...... 

 Oh, also, there's no way I would sell my primary home right now with a 2.25% loan.  If I did, i'd see if the bank would allow assumptions and then UP the price due to the high demand for my incredible rate. something to also think about I suppose. 

Quote from @Chris Webb:

I would ask what are the supply and demand fundamentals telling you. In your market what does the supply look like? Demand might dry up a little, but it will not completely evaporate. What is the supply in your market? Oftentimes the media does not tell this, other, side of the equation. I see supply dropping, which will raise prices not the opposite. If you see supply increasing in your area and demand remains unchanged, then yes prices will drop. But look at the YoY stats for prices over the last 6 months. with decreasing transactions prices are going up! Why?

Good point.  This is a tertiary effect of rate increases, sellers may wait it out too and therefore decrease supply once again haha. hadnt thought of that one yet.  I was just excited to see some decreases in prices for the properties already on the market.  damned if you do...... 

Quote from @Nathan Gesner:

Quote from @Cody Lindstrom:

I know what you are saying here. I'm not sure I'd go with greed, but more "timing" for me. However we see it, I know that the market will obviously cool, because that's what the FED is trying to do. I knew that those over inflated prices would come down and maybe be affordable once again. I also knew that appraisers go off data that is behind the market 6 months so I decided now or never for the HELOC. Turns out I timed that ok except for the interest rate, but my goal is not to use the HELOC longterm, so I'm not too worried about that 7%.

I'm right in the middle really.  I agree with you here that prices are still too high, so I'm cautious to grab hold of a falling knife.  The right deal will come when the fear surpasses greed...major price drops are already happening