All Forum Posts by: Dave DeMarinis

You can also try @Zachary C. from Astro - I’m not sure if he handles that area, but he’s very helpful and active on BP and is a good property manager.

Hi Vernon - I'm an active investor and lender in Huntsville. Have you joined the REIA meetup there? What is your day job/prior experience so we can get a better idea of where you might fit?

Yes, Darrin is a great resource there. If Dayton Capital Partners can’t do it, he will refer you. Actually - confirming, is this in Ohio? I’m following on to Joe’s response but I don’t see the other Ohio reference. @Gary B.did you get a lender?

Check out @Brandon Hall The Real Estate CPA - he and the firm specialize in real estate and they are all investors. He’s nationwide. 

@Account Closed Great points Elliott and I also somewhat agree. As important as PM is, I actually think the people and process to estimate rehab costs and execute the rehab as the most critical. Followed closely by PM but contractor is the key. To your other point, asset class and investment strategy will “cause your mileage to vary” for sure. For example, if someone is doing Turnkey - that really narrows the scope of risk and makes it easier to verify the “contractor” (Turnkey company) - so contractor would still be important but not as important/risky as in a value add strategy ...

Thanks again for the thoughtful response!

@Jeff P. Welcome to BP Jeff. I grew up in Ohio and now live in California. I invest in Ohio, Huntsville and California. I actually love Utah and nearly bought commercial property there in 2017. I have a slightly different take - I think the team is MOST important. I think OOS investors can easily get analysis paralysis trying to select the best area/city. I don’t really think there is what I would call location arbitrage because there is so much attention on OOS. Meaning, any area with great dynamics is very hot and the demand basically normalizes the opportunity.

I would go through a one week analysis and data gathering on markets - pick your top two or three (you won’t go wrong) and then start making contacts. You’ll be fortunate to start to build a team in one market and wherever you take hold, I would dive in and develop your team and start investing there.

Welcome Robert. Are you looking for a wholesaler to buy a property or are you looking to start wholesaling yourself?

@Travis Stern Can you clarify the debt stack and the Purchase/Rehab/ARV? $6K from Purchaser/flipper, $X from you in 2nd position and $Y from HML in 1st position? Usually, HML is for purchase and 2nd (if there is one) is for rehab. This will definitely effect rate and term. I think Tim is guesstimating terms for the 1st? What are the terms the HML is providing? If you would pay off HML in a rescue, you might consider loaning the whole thing because in a sense, you are "tying up the money" for the 1st in case it goes sideways. Also, are you lending to the investor or to his LLC?

A lot depends on what state you are in also. In general, the title company/closing attorney should record your trust deed/mortgage at closing (can’t do it before hand). You will likely need an attorney (could be closing attorney) to draft a promissory note and trust deed/mortgage. There can be some pitfalls on this so you want to make sure attorney and title company review and are happy with it.

@austin sweetn and @David Fairall Option 3 should be exempt from capital gains because of Section 121 (Primary residence for at least 2 of the last 5 years) Of course consult your accountant and all the normal disclaimers. Another option is a hybrid of #1, 2 and 3.
You could rent your place out AND move in to a rental yourself. That gives you a chance to rent your place out (while preserving your Section 121 exemption ... insert disclaimers) for a year and then decide if you want to do #1, #2 or #3.
However, I don't like the numbers and agree you probably wouldn't buy this at market rate for cash flow. However, your CAPEX will be lower than SFH because your HOA is responsible for a lot. You also get increased depreciation benefit because condo's are nearly all depreciable. Still, if you can find a house hack small MF that works for you, that is DEFINITELY the way to go. I don't know your area so that is a big IF you need to determine.
Another option would be Short Term Rental on your place in the hybrid. That might be much better cash flow if legal in your community and HOA ...

The best news - you are thinking about this and asking all the right questions.

Brandon Hall and the Real Estate CPA is a huge Bigger Pockets contributor and definitely worth considering. The whole firm is focused on real estate taxes, very creative and all investors themselves. The firm is set up to be remote. @Brandon Hall