All Forum Posts by: Dustin Dummer

I'm putting together my investment plan. I currently have a primary residence. (If I had known I was going to get involved in real estate investing I'd have done this completely different but it is what it is). If I understand correctly, you must own a home for at least two years of 5 years or I'd take a significant tax hit. Is there a possibility that if I purchased another home that I could rent out my current as long as I move back in for a total of 2 years? My thought here would be to purchase the other property and rent out whichever home rented first and live in the other so that I could bring in immediate cash flow. My current house actually has higher cash flow potential than a smaller rental home. But obviously it would depend on what renters needed at the time. I'm trying to figure out the most flexible way to move forward. Thanks in advance for any advice.

@David Stafford @Andrew Johnson Thanks for your replies. 

I've been analyzing a 4-plex investment opportunity. The property is in a small nearby town. This entire surrounding area is a vacation driven economy with small populations, and not a lot of professional jobs. The 4-plex is in a lower income (rents $450), downtown area. It is the nicer of the multi-families units in the area. On one hand since there aren't a lot of high income jobs, there is a need for rental units.  On the other hand, low income can create vacancy and potential eviction issues. I understand the importance of tenant screening and management. My question is specifically on the the potential or lack of the investment area based on the location, population, and economic factors. I see this as an "entry level" opportunity but am I better to invest in a lower priced single family home in a different area or just wait for a multi-family opportunity in a different area?

I'm in the process of putting together my investment plan. All this entity stuff still seems confusing. I want to buy and hold, might wholesale some, and me be getting real estate license. I may go at it alone or may include my wife in the entity. I currently have a job  (W2 earner?). Does anyone have advice on entity type and/or recommend a good resource for learning about the different entities? In the meantime I will continue to search BP. Thanks. 

BiggerPockets has got me all fired up but now I have to figure out a way to make something happen.I've found a property, actually 2, but for now I'm focusing on the financing for a 4-plex. I'm interested in further understanding financing options. Here's my background: Excellent credit but my money is tied up in two properties that I own (mortgaged) so my debt ratio is too high for traditional loan at this time. I have some options: I may have access to some private lending money; a 401K loan is possible; and I have equity in one of my properties so I could possibly get a line of credit (which I would use for emergencies but don't think I'd use for financing). I'm investigating but believe the property is owned free and clear. I'm open to owner financing, full and partial private loans, lease to own, etc. I'm not keen on the idea hard money loans and then refinancing simply because of the higher interest rates and closing cost but I'm open to listen. In regards to private loans, what options are there? How does a private promissory note work if the person does not get the loan outright? Like everyone else I'm in search of the best way to obtain the property, minimize risk, and profit. To keep it basic, let's use $100,000 as purchase price and a goal of including the financing of 20% down. I know there is a strong argument that if you personally cannot put down 20% then you have no business purchasing. That is a fair argument. But I want to understand all possibilities. If I came in with an offer, I'd like to present several options. And if now isn't the time to purchase then perhaps it will help myself and others in the future. I look forward to your responses. In the meantime I'll be reading as many forum postings as possible on the topic.

The most important aspect of wholesaling (or any business transaction) is making a profit. One topic I haven't seen specifically addressed is factoring closing cost on wholesale deal. Am I correct that typically the wholesaler is responsible for the closing cost for both the seller and the investor correct (unless you're able to do a simultaneous closing)? Therefore I imagine to make any money, all closing cost have to be included in your assignment fee when determining your maximum purchase price? What are realistic changes of being able to do a simultaneous closing? What are typical cost for a back to back closings? I know my closing cost for my personal home was over $2500. Thanks in advance for any answers.

I found a foreclosure for $53,000. It says "Live bidding is ACTIVE for this property". I'm learning on the run. How do I make it happen? Any advice is appreciated.

Thanks Jon. Yes utilities are paid by renters. I'm fairly certain it is zoned multi-family but I'll verify. As far as pricing I know Brandon Turner would say he has to get a great deal not a good deal. In case study for a 4 plex he got the property for $110,000 and $10,000 repairs which is a great deal. I will certainly try more negotiation but a typical single family home typically cost more than $120,000 so unless a multifamily complex is in headed to foreclosure I would think it would be pretty difficult to get that kind of price. Again I have to better research financing options.

I'm looking to 'dive into the waters'. Don't know even know if it's possible yet but let's call this a case study just for fun. Here's some numbers: multifamily unit (4 units @$435) = $1740. They are smaller 2 bedroom, 1 bath units. Lets call them B to C ratings (don't look like they need a lot of work but a lower income downtown location. I haven't seen them yet but pictures looked better than I expected and don't indicate a lot of needed repairs.  IF I could get the units $135,000, $1200 yearly taxes. Would it be worth considering or does a property have to be purchased for much lower price? I'm sure a lot depends on financing options as well. Which at this point I haven't worked out either. I could possible get a second loan on some property that I own to cover the down payment. Any advice on other figures that I need, financing options, would a much lower price be necessary to even consider, etc? All advice is appreciated.