All Forum Posts by: David A Lisowski

@Josh Zigler

Go with a VA loan. You should have full entitlement, and could be 0% down.

If you can also house hack, that will unlock some more potential for income and borrowing in the future. Live in one unit and rent the other(s) to assist with or even cover the payment.

Check on the VA for specifics regarding multi-family units. I am embarrassed to say I don't know off hand. It's been a while since I did a VA loan.

That doesn't necessarily solve your income issue. Do you have a letter stating how long you will receive the GI Bill payments? If you can prove for the next 3 years, that could be enough for some lenders to get you qualified.

The rental income might not be used in the qualifying purposes either. You'll have to check with the lender.

I don't know much about the Phoenix, AZ market. Is there anything keeping you there? Or are you looking elsewhere to purchase?

@Gilberto Silva Barreto Filho

Sounds interesting. Are you looking to have initial investors or wait to start the REIT?

@Bryan Crawford

Congratulations!

And welcome to the neighborhood. My wife and I are over by Deer Lake State Park on 30A.

We are looking to get into other investments down here now that we are full-time residents.

We moved into our previous investment, and plan to lease it for our next move. Then we'll have another investment, and so on.

I think what's scary or intimidating about the local market is it is highly competitive, there's tons of cash offers, price-point is high, and there is low inventory. But that doesn't mean deals don't exist!

I saw a meet up for real estate investors posted. It's in Niceville. Could be a good start. It looks like they meet monthly.

Well, it sounds like the problem might be the flow of the unit as you described.

Do you know how long it takes to get a tenant when it's not staged versus when it is?

I mean, if it's staged and rented out two weeks sooner is that okay? A month sooner?

Does it or can it influence the type of tenant you will have or the price- point for rent?

Staging it for photos is one thing. Staging it for renters to view is different. I'm assuming it won't be furnished then. So something to consider - making sure the tenant knows it won't be furnished.

@Alan Morales

I would definitely seek advice of professionals: real estate attorneys and title attorneys.

The SPS bank closing a loan on collateral that their borrower does not own is their problem. Not yours to worry about.

But yes, if their is a lien on title, then it would be interfering in your ownership rights.

However, the lien shouldn't be enforceable if the person who took out the loan has no ownership in the property. If it's not secured to the property, it shouldn't show on the title report.

You should be able to do a little information gathering on the property if you know the county it is located. Do a search for "____ County real estate taxes," and you should be able to get information regarding title, deed and taxes (usually). It may take a little more digging.

@Matt "Roar" Gardner

Sounds great! Where can I get details?

So how much does a plumber cost each time?

Is the toilet and installation $1,000? Or just the toilet? Are there other costs with installing the toilet and "disposal?" Like are they going to chop up the subfloor or jackhammer the slab? What's the maintenance costs of the toilet and the components? What would a future plumbing bill cost once that's installed?

Lots to consider for one tenant. Unless you plan to specialize in these types of tenants, it's probably cheaper to find a new tenant...? Depends on the market, I suppose.

Some others have made the point of not making your tenant's problems your problems. And that is true. But it's also easier said than done.

Consider a new tenant, and at the very least, figure out how much it will cost you while the tenant is there based on the current plumbing costs. Like if there's only a few months left on the lease, you might be okay. But if it's a fresh year or more on the lease... I don't know.

@Evan Polaski

Awesome explanation, Evan! I appreciate the write-up.

I figured that was the case with most of these. Almost the "too good to be true" kind of scenario.

@David A Lisowski

*Old house, managed from a different state...

I apologize for my typos.

@Steve W.

Thanks, Steve.

This is what I was looking for. I looked again, and my analysis is closer to what you have here. Barely breaking even.

I also don't anticipate this area to appreciate as much as other areas. But I'm no Nostradamus.

To get this to work, the PP and loan would have to be a lot lower. And yeah, an old house manager from a different state would certainly add other hidden costs or possible budget busters.