All Forum Posts by: Dan M.

I don't think that you would be able to. The bank is going to make you sign their contract, not the other way around. Your contract has escape clauses and the ability to resell the contract to a third party. I don't think any bank in the world would allow that, or have that in their standard contracts. 

I may be wrong about this, but if you own it by yourself that it is irrelevant. I think the initial contribution only matters if its a multi member LLC. This would deal with issues of bankruptcy/dissolution would the substance of the operating agreement call to access those numbers returning capital back to the partners if applicable.

Hello Melissa

You mentioned it twice your credit could use some work. Take a look at your credit report and see what you can fix over the next 6 months. Rates are coming down so it will be in your best interest to wait anyway ( depends on market area ). By fixing your credit it will save you a bunch of money in the long run. Did you talk to your bank about the possibility of refinancing , knocking out the lein and maybe taking 150,000 of equity out? If you can gift that to your daughter she should be able to have a low enough monthly payment to afford a home, especially if she buys a duplex and rents out the other half.  I don't know your market to know the numbers but its an idea.

@Alecia Loveless Thank you for responding. I truly hope that's the case with no depreciation payback. What about converting from an LLC to a personal name?

Welcome Davarious! I would start first determining where you want to live and house hack. If your staying in Memphis then start researching rents and market values of homes. Decide if you want to try to get a 4 family to start, or one single family and rent rooms to friends, or maybe a duplex and live in one side and rent the other. Then the best part

THE MATH!

I assume your smart enough to calculate it all yourself or look up how to. The math is the critical decider. Keep all your emotions out of it. Start analyzing houses and do whats the best for your pocketbook. Don't listen to your partner or friends on why its better to live here then there, or you like the landscaping, or the garage, or whatever. The math will always give you your best option. Remember - you don't have to live here forever. Your just trying to get experience and see how this whole thing works. 

Say you buy a 2 plex, and live in it for two years or so, you can get a single family home and rent out the other side after you move out.  In that time you will have made x dollars to help fund your next property. If your after financial freedom do the best thing that's for your wallet. 

Hello all,

Has anyone done this? If so what are some things to consider. My biggest question really is do you have to pay back expenses and depreciation on the conversion, or does the basis just stay lower when you go to sell for primary residence exclusion ( Assuming you live there long enough to qualify ) Any help or pointing me in the right direction would be great. 

Hey Troy,

It looks like that trim has already been painted over. Personally I would replace or at least caulk the existing. 

I'm not there, but from what I hear tenant laws are a nightmare. 

Hello Alexandra,

Usually a bank wont offer traditional financing on a BRRRR, generally BRRRR properties are unlivable/ in need of a lot of work. THATS how you add the value, by repairing the defects, kicking out squatters, painting over spraypaint etc. In general the worse condition it is in, the better it is for you to add value.

Super important that you know what it will be worth once repairs are made, and that you know what the repairs will actually cost ( many people underestimate and get burned ). Why its so important because the appraisal better come back with at least 20-25% equity left over so you can pull the money you used to purchase it and do the repairs.

That said, you can use cash, get ahold of a hard money lender ( most expensive option), or get seller financing.  

What about orange/ulster/sullivan county in NY?