All Forum Posts by: David Barnett

If you are planning to BRRRR a property, I would bring the percentages for maintenance and Capex way down (depending on level of renovation). If you update most of the items during the rehab, you should have at least a few years with no/minimal repairs or capex expenses. I would also try to pass off utilities to the tenants, if allowed where you are investing. Vacancy at 10% is probably a bit high. I would ask a local, reputable property manager of the vacancy rate in the area where you are investing. I would also look at the property management fee in the area and back into it.

@Brenna Crowe Congrats on a successful first flip.  What is the blended interest rate of the student loans?  Was the flip in Boston, or somewhere else?  I'm a bit concerned with the values in Boston proper, and wouldn't want to take on really long projects in case the market shifts.  I invest out of state (buy and hold), and please let me know if there's anything I can help with as you move forward with your investing/decision making.

@Brenna Crowe Congrats on a successful first flip.  What is the blended interest rate of the student loans?  Was the flip in Boston, or somewhere else?  I'm a bit concerned with the values in Boston proper, and wouldn't want to take on really long projects in case the market shifts.  I invest out of state (buy and hold), and please let me know if there's anything I can help with as you move forward with your investing/decision making.

@Gus Muller I like the area, too.  I think you're going to have trouble cash flowing with the property, even with the tenants paying for all utilities.  I'd probably sink a few additional bucks into the kitchen and the light pink tiled bathroom and unload it.  The other option, have you thought about renting the house out by the bedroom?  That might get you an extra $100-$200 per bedroom.

@Austin Jacobus Am I understanding correctly that you are 100% going to college?  If so, I would use the $10k to make sure you go to college debt free.  I agree with Natalie that you should apply for as many scholarships as you can, and also agree with Dave Ramsey on his point that graduating college debt free sets one up for success right out of the gate.  I would keep a war chest of money aside until after you receive your diploma to guarantee that you graduate college debt free and then invest after your first full time job.  If you wait, you'll also be able to qualify for more of a property than if you were to try to qualify with part-time income while you go to school.

I wouldn't recommend investing in real estate if you're currently unemployed.  

I agree with Scott.  I would have them serviced and do a tune-up in hopes that it will get you through to when HVAC companies aren't in high demand.

Hold your remodels for 1 year and 1 day.  That would turn your profits into long term capital gains instead of ordinary income.

Based on the OP's summary of events, I vote C, none of the above.  I don't like what I'm hearing from either of the property management companies...  Good luck.

Why not work on fixing your credit?  I would talk to a credit repair company or a lender who could provide suggestions on how to fix your credit.  They should be able to look at the derogatory marks and offer suggestions in your case on how best to fix the score to be able to qualify for traditional financing.