All Forum Posts by: Duane Gunkler

Done.

@Nicole Dunbar - I wasn't expecting to buy anything until next Feb/March when my current lease is up, but I'm chomping at the bit, which is why I want to act now, rather than sit on the sidelines. I knew that I needed to have my ducks in a row first, but just didn't expect to want to jump into the fray so soon after starting to learn more about REI on BP. I will definitely check out Fidelity and Movement Mortgage. I briefly looked at Movement's website tonight and I intrigued to learn more, so I will reach out to them this week. I definitely don't fall into the first time buyer category as I have purchased 5 SFH for myself over the years, and 3 properties I bought pre-construction, but walked away from my deposits because the market dropped while they were being built.

@Lisa Thoele - Definitely good practice to run the calculator and go through the steps.  Each time I learn a little more and gain confidence.  I try to analyze at least 10 properties a week, just to help myself realize the numbers.  I wouldn't waste anyone's time.  I know when I am ready to move forward, and when I'm "just looking".   I'm getting to a place where I have a lot more confidence in my numbers, which is why I am bummed I missed out on this one, although it is still showing active...

Anyone want to partner...?  ;)

@Nicole Dunbar Thank you for the encouragement! I hadn't gotten any of my financing in order yet because I wasn't planning on acting on anything yet. I was analyzing properties because I wanted the practice, etc. Problem is, I am not the type to sit the bench! Put me in coach!!! I have started the process of getting my financing in order, but just not there yet. Since I'm looking to purchase as a buy and hold strategy, I'm not looking to do private money or hard money. If I were looking to flip or even do BRRRR, I would consider those options. In my case, if I don't have the financing ready, then I'm not in a position to get the property yet and I need to bust my tail to get in that position so that I can. I am definitely going to start pursuing off market deals too, but at this stage I am going to get all my finances in order first. I am definitely learning a ton through the process and can't wait to officially get my first one under my belt!

@Logan Allec  Working on that now Logan!  ;)

@Brandon Battle Fair question -- but the Realtor in question is actually my ex-wife (who just got her license after the divorce) and all I had her do was write the seller to get some questions answered, like current rents on the units, etc.  She spent no time on it, and I wouldn't tie up a Realtor going to look at properties without having my ducks in a row first (although you're right, a Realtor should screen any potential clients first before getting to that point).  I wanted to go to the local meet-up this past month, but was out of town for work that day.  Definitely plan on attending them when I'm available!

@Jerry W.  I realize that.  One can dream though, right?!?  ;)   I'm working on bettering my financial situation now so that I am in a better spot when an opportunity like this presents itself.  Like I mentioned, I need to be patient while I get my ducks in a row, but I'm very eager to get that first one under my belt!  I'm working on learning as much as I can now to better capitalize when the time comes.  Thank you for the input and encouragement!

So I've been doing lots of reading, watching lots of webinars, listening to blogs and I found a property I was really interested in purchasing. It is a 4-unit property that I could either purchase and rent (all four units have tenants currently in place), or house hack once one of the current tenants moves out. If I were to pay full asking price, keep the rents the same, and put no money in to rehab -- the Cash Flow would be $620/mo and a CoC return of 13% after figuring in vacancy, repairs, capex, and management.

For me, this is a no-brainer that I wanted the property, but I don't have the funds to get it.  I've been trying to figure out my options, but don't really know where to begin to find either the money to do it myself, or a partner to do it with.  I have read the posts and info on doing it with low/no money down, but I just couldn't get my ducks in a row fast enough this week since finding the property.  My realtor said that they updated the notes on the listing to say that they've been getting lots of offers and that they were going to take the highest offer as of 9/1 at 5pm, but it is still showing available, so not sure if they actually accepted an offer or not.  

I know there will be plenty of other deals that come along, but I am frustrated that I wasn't fully prepared yet.  My original goal when I came to BP was to begin my real estate investing when my lease is over in February, but I don't want to keep sitting on the sidelines.  I'm eager to get in the game and learn through experience.  Back to the books I go...for now!

@Tiffany Allen As long as you meet the requirement of living in the house for at least 2 (of the past 5 years), then yes - you are protected from the capital gains up to $250k/$500k (single/married). If you sell before Dec 18th, you won't meet the requirement and will be subject to pay the tax on any gains on the property. Obviously I am no tax professional, but that's my understanding. 

I suppose you could list the house now, or in Oct, but delay closing until after he two-year mark?  Maybe a buyer would be willing to either delay closing or build in a two month lease back before the official sale date?

@Tiffany Allen  If you list in October and get an offer right away, are you going to sell prior to the 2-year mark and pay any capital gains?  If not, then I probably wouldn't list in October.  Homes priced right seem to be selling pretty quickly.  Just my $0.02.  How much profit do you plan to make on the sale?  It looks like you paid $370k and the Zillow estimate (not that those are necessarily accurate) is $411k, so after closing costs and fees, it seems you would would be somewhere around $20k-$40k in gains, which would be well below the allowed $250k ($500k for married couples) before you're responsible to pay capital gains after the 2-year mark on Dec 18th (my older set of twins birthday I might add).  :)

I was out of town this month and couldn't attend, but looking forward to making them in the future if I'm in town! 

Hello BP community!  I am excited to be at the stage I am at where I feel ready to start trying to put in offers on small multi-family housing units to generate capital and long-term wealth!  

My issue is with the financing. I have a solid W-2 income of approximately $115-$120k. So far, so good. Now the challenges -- I filed bankruptcy 7 years ago (hasn't dropped off yet -- Chapter 7 has another 2-3 years left). I got divorced in March of 2016, so my ex is still in the house, and I am still on the mortgage (although it is her responsibly per the divorce papers). So, between Child Support/Alimony, and that mortgage, I think it will be difficult for me to get financing. 

I have found a four-plex that I think works out for my cash flow and CoC return desires, but I don't have 25% to put down, and don't know if I would qualify for a conventional loan even if I did.

Looking for advice/suggestions. 

Thank you in advance!!!

@Nathan Churchill -- I second that emotion with the support found here! And I agree with the benefit of analyzing properties on a regular basis. It helps it become muscle memory, and it helps me get more efficient at finding the information I need to do the analysis. There are still some things I am sort of "guessing", like the expenses (insurance, sewer, etc), but it's helping me learn where my gaps are in the analysis so that I know what I need to focus on. I went PRO last week and have been running the calculator on a few properties a day, just to get in the habit. I think you can use the calculator like 5 times for free without the PRO membership, but for me, the $232 (20% discounts are given on all the webinars, etc.) -- it was well worth the price since I am 100% committed to getting involved in REI.

That's awesome @Sterling Anderson!  Congrats on landing that first and best of luck with it!  Very encouraging for a newbie like me to see other's finding success!