All Forum Posts by: Daniel Lioz

Kaelyn, can you please send me that name for modular builder as well?

Thank you!

I just looked up at mortgage and that is about $1100 a month on 235K for 30 years.

Your $3000 will cover the closing costs (title insurance, etc.)

I would also recommend to save cash for at least the first 2 months of being vacant, though you put vacancy into your calculation, if you are vacant the first month, you are out $1700 right out of the gate...and you don't want to accept the first renter that comes through the door, be careful who you rent to.  Depending on the house age, I think the $100 might be either right or too low for maintenance/capex costs.

I would actually recommend if you are 24 (especially if you are single), do a house hack with it (live in part of it and rent out other rooms to people).  Buy it with mortgage of $1700 (after all ins and taxes, etc) as a primary residence, and rent out parts of the house.  You will reduce your living expenses, do some improvements as you live there and bring the value up, plus you will eliminate your own rental expense....so you can probably live there for free, depending on the number of bedrooms, etc. 

In a year, you can re-finance it or rent it out as a whole or move out or whatever else that may work, while at the same time you will build equity in it on someone else's dime.

Just my 2 cents.

I have been seeing a lot of very nicely priced converted CONEX shipping container offices and homes on sale during this economy and also due to current economy nice falling prices for land.  I wanted to see if I get a good deal on both, how do I connect the converted shipping container to the utilities?  Electrical and Water/sewer?  In most of Houston, there is no zoning, so if I get a nice land and can easily put two or three offices for half a price of a single structure and rent them at half the cost of a regular small office, or buy a knock down house, level it and put up converted containers on it, possibly even add self storage components.  I am looking for some guidance on connecting and also on the price I might be looking at for these connections to utilities?  The land, the containers, the land prep, I got that covered.  Thank you!

@Ken Jernigan

So for the sake of easy math, say in a single transaction I want to buy Self Storage for $1m (504 SBA Loan 90% LTV), I will add $50K in Solar Panels (504 Green SBA Loan 100%), purchase $100K in Shipping Containers for additional self-storage capacity (which is 100% financed by the Container seller over 10 years or 504 SBA Equipment Loan 100%), so the estimated assessed value of the facility goes from $1m to may be $2m (because of solar and added storage capacity), what will my numbers look like from loans to out of pocket? the total cost being ($1m + $50k + $100K with 3 different loans in 1 transaction).

In today's COVID-19 environment and banks processing the SBA PPP loans left and right to support the economy, are banks still doing the SBA 504 loans?  I noticed recently that 504 loans are going for 3% or under for 20 to 25 years, which is almost unheard of.  With 90% down for something like self storage or equipment loans, it is pretty much free money after inflation.  Anyone has experience with this recently or any bankers here that are still working with this right now?  What are your thoughts?

You can always pay $500 for electrical work and set up a Tesla connector in the garage and sell it as a free car charger for the life of a house :)

Scott, how did the numbers workout for the mixed use area?  The offices and coworking space, did the increase greatly your revenue/profit per square foot vs pure self storage?  I am very interested in this kind of development as it diversifies the revenue stream of just pure self storage play.

Thanks!

Also consider appreciation, if builder is building a lot of these homes, you will have 0 appreciation until he leaves the area, so competition for rental will be higher....while an older home might be in the area where the lot appreciates.  Also, consider value adds with older homes, you can do little rehab or cosmetic item that will cause the value to increase.  Also look at rental incomes and schools, cheap rentals in new homes may bring down schools over several years, but again as you said, cheaper ownership in the first 5 years or so.  Things to ponder on.  Good luck.

So cash invested was >85K?  Since you paid it off with interest plus taxes since 2012, you just didn't invest in any additional improvements.

Why can't you do both if it just about money...time wise might be a little hard...school and RE, but money wise you can do both.  Use 150k to buy real estate, take student loan to pay for college, real estate pays for college loan and reduces mortgage.  When done with college in 3 or so years you have cash flow, free education, equity in RE and two careers....chiropractic and RE investor?