All Forum Posts by: Daniel Hoffmann

@Natalie Kolodij @Steven Hamilton II

Thank you for your replies.  I assumed as much.

So I just purchased my third rental property.  My first two properties still have their first tenants.  One has been there for 2 years and has already told me they would like to stay a third, and the other tenant has just signed on for a third year.  Both units were signed at market value and I have not raised their rents as they have been very good tenants.  However, it did take me 30-60 days to find each of them.

So for my third property, a condo/townhouse, which I just bought last week, during the time it took me from getting it on contract to closing, 4 more condos in the same complex popped up for rent. All are the same layout as mine, all include similar updates like mine, all have in-unit laundry like mine, one is asking for $850/month and the rest are asking $950/month, all from different owners/realtors. My expenses are around $880/month (PITI+HOA) since I purchased this with a loan and when I got it on contract I was estimating to get $1000/mo (the rental appraisal came out at $1,100 and my own research told me I could get $1000.)

My question now is, with my expenses at $880/month and a lot of competition at $950/month, what are your thoughts on renting it out for $900/month?  I'd basically break-even the first year.  I don't expect much for repairs since everything is in good condition.  I would like the extra $50-100 a month, however every day that I go vacant I am losing $30 of income.  With all the competition, I could be waiting a month or more to rent the unit out, basically eliminating the difference.

Would you rent it at $900/month, and then raise the rent back up to market towards the end of the lease?  That way I can look for market rent while having a tenant in the unit.

I believe PMI is no longer tax deductible in schedule A, but is it still a tax reducing business expense for rental properties?

I found this article on the IRS website but this cannot be true.
https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/rental-expenses/rental-expenses-1

Can I just add the PMI expense to my interest or insurance line in Schedule E?

I am interested in purchasing a property that could use about $8000-$10,000 in cosmetic upgrades (change carpet for laminate, retexture and paint walls + ceiling, upgrade appliances, upgrade countertops to granite, upgrade kitchen+bathroom cabinets). How can I structure an offer offering full asking price but at closing the seller gives me back $10,000 cash? Is there another way to do this? I would be purchasing as a Owner Occupied primary and can put 20% down payment. Houston, TX.

@Wayne Brooks - Thank you for the reply. My current loan is not FHA, it is conventional fixed 30 year.

I am looking at the FHA 3.5%-5% down as well as this Conventional 97 LTV loan. Are you saying that small multi families (2-4 units) are not eligible for conventional loans?

Also if the building needs some repairs possibly looking more into 203k FHA loans. Again, I am very unfamiliar with these different financing options. Just started Googling last week.

So I purchased a primary residence in the Houston, TX area back in 2015.  I lived in it for two years and at the end of 2017 I moved to Boston, MA where I am renting.  Since moving out, I have leased out my primary residence in TX and it has been a rental since January 2018.  I have just signed an extension to this lease until December 2019.  I purchased it in 2015 with only 10% down and I believe I have now somewhere in the 15% equity in it.

I am looking to move back to the Houston, TX area now and am interested in buying a multi-family.  My question is, can I qualify for another primary residence and can I put less that 20% down on it?  Ideally I would like to put 5%-10% down on the multifamily.  Is this possible?

Edit: I would be living in one of the units in the multifamily.

I am looking for lenders and advice for acquiring loans for new construction.  I am looking at buying a lot in Houston using owner financing.  I have enough for the down payment and monthly payments.  I am buying this through a Partnership Joint Venture with another experienced investor and an experienced general contractor who is looking to invest as well.  We will each put a third of all costs, flip the property, and then split a third of all profits.

My third of the construction cost will come to $50-70k. What is the best way of acquiring these funds? Will each of our lenders want first lien? Should we each search for our own funding or get one lender to fund the JV project? If anybody here has done something similar, how did you do it?

Any advice would be helpful.  Please post in this thread or PM me!  If you know any specific lenders please let me know!

Interested in fix and flip, hold, and selling using owner finance.  I have yet to look into other means like options.  Starting out and would really appreciate partnering with someone on deals.  My long term goal is to have large apartment complexes or communities with 100+ units.  I want to be able to point at a few buildings when people ask how my 401k is doing.

Hello BP! I am looking as well! I am looking for GCs that can do SF and MF, can do a new building on raw land, full rehabs of beat down properties, and touch-ups, and require little supervision.

These are some characteristics of what I find is a good GC:

1. Provides estimates of rehab works that come reasonably close to actuals (firm bids would be a plus).
2. Is able and willing to do cosmetic work as well as studs-deep rehabs.
3. Has a dependable crew(s) and is known to hit targeted completion dates.
4. Is knowledgeable of Houston / Harris County permitting and inspection requirements.

Please PM me or email!

Hello BP!  I am looking as well! I am looking for GCs that can do SF and MF, can do a new building on raw land, full rehabs of beat down properties, and touch-ups (I like the lipstick metaphor), and require little supervision.

I also really like @Johnie Hopkins original four points:

1. 1. provides estimates of rehab works that come reasonably close to actuals (firm bids would be a plus),
2. 2. is able and willing to do cosmetic work as well as studs-deep rehabs,
3. 3. has a dependable crew(s) and is known to hit targeted completion dates,
4. 4. is knowledgeable of Houston / Harris County permitting and inspection requirements.

Please PM me or email!