All Forum Posts by: Dan M.

Hello Fran,

Its just my opinion but there are a few advantages to managing it yourself. You will gain valuable insight and save on the fees which will make it easier for your first one to succeed. Good luck!

Damn thats pretty deep. I think its something you have to meditate on and answer for yourself. Real estate investing can certainly be a game changer in ones life if your disciplined enough. 

If you look into wholesaling it could be a great way to start as long as you know how to analyze a deal, and that takes very little money to start. Especially if you have a buyer waiting to purchase something you find after its under contract. Real estate is creative there are a ton of strategies to employ just keep reading the forums. I have to agree with Jonathan though unless your really ambitious and ready to take the plunge having money ready makes it a whole heck of alot easier. 

Thats tough Manilla but don't get discouraged stay the course. Do you have a mortgage on the property or is it paid for outright? 

@Justin Yen Yeah it can be tough if you live in an expensive market especially if your budget is only 50-60k but do not be discouraged money isn't everything you can find hard money lenders to help you purchase just make sure theres enough meat on the bone of the deal so you can actually appraise at a bank when you pull the money out, and you don't over spend on the rehab itself otherwise you could find yourself in trouble losing the home to the hard money lender if you can't complete the work.  Maybe start in an area where property values are not as expensive this way there is less risk of not completing the project or losing your money and you can gain valuable experience this way. 

On the other side of the coin if your confident in house hacking as opposed to BRRRR and it pays the bills and you live for free/possibly cash flow thats a nice win there so you can continue to save up for those larger properties. Infact since this would be your primary residence you could sell it tax free on the gains if you live there long enough * disclaimer -talk to a qualified tax professional*

Congrats on the purchase! I waited a year for everything to stabilize personally between my first, second, and third.  

Hello Valerie,

If you are getting a 10% cash on cash return you wont be using your own money to make any repairs as they do not need really any work. Once the tenant pays the mortgage down a little, or your market has some appreciation and your home value goes up, you can get your cash out by refinancing the deal and do it again. Not sure if your analyzing the deal correctly if you can share some of the numbers we can help you find out :) 

You can do either. You can get a HELOC and keep your FHA or completely refinance out of the FHA. So looking at your numbers if your appraisal is accurate at 100,000 you could go either route for about 80,000 and "pull out" around 28,000 ( 80,000-52000). HELOC is nice because you can keep it open and use it / pay it down whenever you want. Though the closing costs of the refi you have to bear in mind too, hopefully what you would save in terms of interest rate reduction pays for those costs in a year or two. Hope this helps!

The key to this I think is knowing the cost of the central air installation and also the market rents with central air in your area. Do you feel as though the central air is necessary? Would it give your property more value compared to those in your area?

Even if it won't boost the rents it could impact the selling price when and if you guys sell, plus add an amenity to a tenant to potentially reduce turnover long term. I assume the tenants are paying the utility costs for this unit? 

The only way I know how to do this is you would have to sell the property to your LLC and record it on the deed and close out the mortgage in your name and transfer the new one with the LLC funding. Obviously there would be closing costs with this. Speak to the bank doing the refinance, though they likely will charge you more in interest because it is in an LLC and you no longer live there.