All Forum Posts by: Cody Montgomery

@Aaron Phillips Do you require a “non-refundable” deposit to lock the deal up? If you don’t disclose your assignment fee, do you let the buyer view your PA that is in place with the seller? Thanks in advance...

@John Thedford My wholesale contacts say “$2,500 Non refundable (certified funds) deposit locks this deal up.” What can I offer as an alternative or should they just accept their assignment fee and hope I close the deal? Thanks in advance...

I have a 1 BR/1 Bath garage apartment partially detached from my personal residence. I need help on how to structure many aspects of the rental.

For instance, should I or can I establish an LLC to rent the unit under? What kinds of insurance would I need to carry? How would I report the income of the unit in a way that repairs, upgrades and other expenses can be written off?

There is not a washer/dryer in the apartment, but I do have a laundry room downstairs, however, it's the same one that my family uses and I would be a bit hesitant to allow the tenant to use that without certain time and frequency restrictions. 

What about pricing for the unit? Is it comparable to a traditional apartment building unit or better because you don't have neighbors above and below you that could be a nuisance?

Any thoughts or help would be greatly appreciated...

Need some advice! Recently purchased a property with (2) garage apartments. 1 currently has a resident and the remaining apartment is being slightly renovated to make it suitable for rentals.

Being that I personally mortgaged the property, should/how can I set up the rental portion under an LLC? 

What kinds of insurance riders will I need on the additional properties to cover the additional rentals/tenants?

What is the best lease term to set up the tenants on? I have heard many different arguments from month-to-month, 6 month, 1 year, etc.

The property has a pool/hot tub also that we wouldn't mind allowing access to the tenants, within reason. What additional forms should I have them sign or what stipulations should I place on the use of the pool/hot tub?

Also, would consider putting these up as AirB&Bs... What advice would apply to the AirB&B portion of this scenario or where would y'all point me for further reading, advice?

What is the general consensus on ARMs these day? I understand how quickly it can get away from the borrower, but if the intentions are to more than likely turn-over the property after the initial locked-in period, should I be as leary?

Curious as to how the BP Community would analyze this property mixture....We're looking at a single property (3 standard lots) with multiple income-oppurtunites on site that had previously been reserved for family/friends, so there is not much of rental history to relate. The property is probably the best in the neighborhood ($-wise), but only due to extra buildings on property. Hard to find any comps nearby because this place is a little unique to the neighborhood:

• Main House: 
  • ~2100 sq. ft. 2 Bedroom/ 2 Bath SFH w/ in-ground pool & hot tub, built in late '60s
  • Somewhat dated but easily updated cosmetically & with new appliances
  • Nice covered patio w/ built in outdoor kitchen
  • Additional ~ 400 sq. ft. Pool house with plumbing 
  • Additional ~ 300 sq. ft. shop/storage building
  • Property on corner lot with 2 extra lots backing up to the end of a cul-de-sac
  • Possibility of converting one of extra buildings to office for side-hustle/LLC
• Garage Appt #1:
  • Connected to main house by a shared roof and connected breezeway
  • ~ 900 sq. ft. with kitchen/full bath/laundry and separate access/entry (stairs)
• Efficiency Appt:
  • ~ 800 sq. ft. & connected to main house by a  shared roof and connected breezeway
  • Located beneath Garage Appt #1
  • Only 1 big living/bedroom with full bath and kitchen
• Garage Appt #2
  • Separated from Main House completely
  • Dedicated 3 car garage for parking for occupant...also included washer/dryer in garage for occupant's use only
  • "Boat Shed"  (carport with enclosed storage) on slab for occupant's use
• ALL (3) properties are centered around an in-ground pool w/ hot tub.

I'm needing to live in 1 of the buildings while my job is on-going for about 12-16 months. I'm able to live in whatever property is vacant, so the house is available to rent if have occupants.

How should I analyze this, with the property being hard to resell as a SFH because the price is above the comps due to the extra income-properties....? Will I be able to rent out the main house as a SFH with possibly 3 additional tenants in close proximity? How would everyone treat the access to the pool/hot tub if all 4 properties are rented? Any guidance from you "gurus" would help?

If I need to add any details to help, please comment. Thanks again BP.

So, we are looking at an easy way into the rental/rehab/flipping real estate world and though it's only a single-family home, we are trying to "house-hack" it by buying under value, with a good mortgage rate with low down payment... Here's the details:

List Price: $219K

Purchase Price: $190K

Rehab Costs (est.): $60K

ARV: $290 - 310K

Old Mortgage (P/I/Tax & Insurance): $2625

New Mortgage(P/I/Tax & Insurance): $1700

Details: Sought after, established neighborhood, close to schools and parks, in best ISD around, family friendly area.

I have a good income. Our plan is to down-size from our current mortgage + expenses and use the extra budget to pay for material and skilled contractor work. In the meantime we would be living there as well, so our holding costs would double as our monthly living expenses. We would attempt to lower the $60K rehab budget by inputting as much "sweat equity" into the labor portion of scope. 

Am I looking at this wrong or should approach this from a different prospective? Is this a good way to get my feet wet, learn the ins and outs of rehab/value-adding?

Any help is appreciated... Thanks.

CM