All Forum Posts by: Derick Hanna

Thank you! That’s super helpful. 

I want to purchase a value add duplex. The seller is a friend and would like to owner finance. PP:260k, 5% interest, 10% down, 20 year mortgage. The property needs around 30k repairs. ARV: 320k. What I would like to do is put 30k of my money in escrow for repairs instead of doing a down payment. My thought is that the seller still knows I have "skin in the game." If I default before the repairs, they keep the money. Alternatively, if I default after the repairs they benefit from the rehab and get the house back. Assuming I can convince the seller to do this, does it make sense? Will a title company be able to do that? Thanks in advance!

A close family member just had their home appraised and it came back 855k. They have 600k in equity. I am relatively new in my real estate journey and my family member has no experience other than renting 2 ADUs on the appraised property. I currently have a 4plex that I got with the VA loan that I am house hacking. My plan was to use the rest of my VA eligibility to get another small multi family next. My family member wants to get into real estate and is open to lending or partnering with me. Should they HELOC or cash out refi? Feels like there is a big opportunity here. Neither of us want to waste it. Ideas/advice would be great.

Hey guys,

I just saw this today otherwise I definitely would have attended. I live in wasilla and would very much like to meet other investors in the area. I moved from GA about a year ago. 

Hey guys, we are closing on our first real estate deal this week. It is a 4-plex and we will be living in one of the units and renting out the other 3.  We inherited 3 tenants. All 3 tenants signed year long leases about a month before we put in the offer on the property.  We intend to self manage and are unsure about what we can do when it comes to new rules, or payment systems (we want to use avail), etc.  Can we make a new lease agreement and have them sign it?  I am assuming the rents cannot be raised until their previous lease expires, but can we change other things?  We are fast approaching closing and I don't know the best way to make this transition.  They all have newly signed lease agreements with the previous owner...and now we own the property. What is the hand off process like?  Any advice on this issue would be greatly appreciated! Thank you.

 Yes, I generally agree.  It is the sellers responsibility, but it is still our problem at the end of the day.  I am not doing a ton of deals.  This is my first real estate purchase and it is a house hack.  The deal is really good and we are having a hard time finding anything that comes even close to it in our area.  We really want to close on time and move in.  Good news is that it looks like the tenant will be out in time.  Final walk through is tomorrow so we shall see! Thank you so much for the response. 

 Very Helpful! Thank you.  It looks like they are going to be out before scheduled closing time after all.  Final walk through is tomorrow. 

Me and my wife are a week out from closing on our first 4 plex.  We are going to be living in one of the units and renting out the other 3.  However, the tenants in the unit we are supposed to move into have not left yet. They were supposed to be out 15 days ago and were granted a 2 week extension by the previous owner.  All the paperwork is done and the only thing holding up the deal (and our planned move into our new place) is these tenants.  The eviction process is going to take at least a month...is there anything that we can do?  A few of our friends have suggested that we offer them cash to just leave, or pay for a week in a hotel.  What is the best way to approach this?  

 Conn,

Thank you, that's encouraging! If we can't get the VA to do a loan because of inspection issues we are considering trying for a 203k rehab loan. If we did that we could fix up the property and hopefully raise the rents in 2 of the 3 units. I believe that 203k has 3.5% down as well which is more than the VA but still such a good ROI. Thanks again!