All Forum Posts by: Dustin Little

That is substantial amount of needed repairs. A few things to consider, is it viable to put that much into the duplex? Could you go lighter on the repairs now so that you could get it rented without contributing such a large amount of cash toward it? Then over the next few years continue to improve the property?

If you go with a HELOC be sure you'll be able to pay it off as soon as possible. It is looking highly likely rates will be going up over the next months and perhaps years. HELOCs often come with variable rates and these conditions could take your monthly payment up. The cash out refi may be the better option. You'll be able to get a fixed rate and avoid the unpredictability of what may be in store for us in the coming future. Just pay attention to early payoff penalties.

In the past year I attempted to secure a HELOC; however, it is difficult to do with more than a few properties. Also, difficult to do with rental properties.

In either case, I think putting that equity to use is a good idea. Put the money into the duplex and then refi and continue on to another property.

If you have been depreciating the property over the past 12 years you'll need to recapture those taxes as well. I always have a CPA handle my taxes. Each state has different tax laws. I see you are in Seattle, WA. Washington has an excise tax, ~1% depending on the sales price. A few hundred dollars each year to pay a professional to do my taxes protects me from any chance of getting myself in any trouble. In reality the CPA saves me money by ensuring I receive the highest tax deductions possible. All my properties are managed by a well established PM firm and I use the same CPA as the owner. I would suggest reaching out to other local investors and PMs to find a good CPA.

Hi David,

I have a LTR in Huntsville (Owens Cross Roads). We bought it in 2018 and it has appreciated greatly. Rents are good on that side of town as well. However, entry point is increasing. But, a lot of areas are as well. Our tenants moved due to the military this month and my PM was able to find a greatly qualified tenant to replace them with only a gap in occupancy over a weekend. We also increased rent by more than 10%.

What was the status of the house you sold in Nashville? I have never done a 1031; however, from my understanding the properties need to be like kind. Was the Nashville house a rental? If not, and you lived there I think you'll have to 1031 into a personal home. Anyone who knows better please clear that up, thanks. 

Hello all,

The military is moving my family and I to Fort McCoy Wisconsin. I am looking for an agent who is familiar with working with an investor. Does anyone have any recommendations? I will be likely looking in the La Crosse area. Ideally a duplex or a large square footage that could be converted into a duplex.

@Jay M. That is what I was most curious about, the RTAs. I viewed a flipped home the other day it had what appeared to be RTA cabinets with all the features, slow close under draw slides and hardwood draws with the slotted cuts.

Then I went into a higher end new construction that had most the same features except the draws were plywood and only nail and glued assembly.

I was hoping to find a RTA dot com store that could provide a similar quality cabinet that was in the new construction home hoping it would be cheaper than the online RTA stores I have found that only catty hardwood draws.

Thanks for the reply

@Louis A. Thanks for the detailed info.

Wondering what cabinets flippers and BRRRs are installing. Hardwood, MDF, Plywood, etc ? What is best? What is most cost efficient? Any advice on which RTA dot com to source? I am working on my third buy and hold BRRR which will be a live in flip and the kitchen will need to be redone. I am also thinking about doing a DIY concrete countertop. Any advice in regards to sellability/rentabity based on experience with concrete countertops would be much appreciated.

Everyone knows foreclosures are a great way to get a house at a bit of a discount. However, often times banks will not pay any closing cost or if you ask for them, say up to 3% of purchase price, someone else may not and their offer will get accepted over yours. I have now seen these costs reach more than $4,500 on a $60k purchase, that is a big percentage.

So, I was wanting to ask all of you how much you typically see closing cost and maybe fill us in on the details of the loan (ie. conventional, FHA, owner occupied or investment property).

As for me, the loan I am currently acquiring is for a HUD/owner occupied/foreclosed home. My offer was accepted at $61k and the closing cost for my conventional loan at 4.85% with 5% down payment is projected to be $4,541!

Yeah, I have a pretty good credit score and was just approved for 5.25% conventional for a personal property.  In the past year or so I have purchased two investment properties and they were for 5.125% and 5.25%.  Rates are climbing.

I have had terrible experiences with PMs in the past. I now interview my potential PMs with questions such as:

How often do you conduct inspections?

If we experience a large storm will you inspect the properties?

Are you willing to lower your fees as we add properties?

I now work with two PMs in two states and they have been great. The one offers a discount for assigning leases due to multiple properties.  I also buy through my leasing agents which helps build our relationship.  They know what I am looking for and they are able to provide the best assistance.  The whole idea, at least for me, behind having a PM is to remove myself from the management process as much as possible.  In past experiences, I found myself managing my PMs rather than them managing my properties.  This is not ideal.  So, working with a PM you trust and allowing them to make the call on repairs under a certain amount (ex. $300) works well for me.  I am an active duty Soldier and recently I was out of the country when a water leak coming from the hot water tank was discovered in one of my properties.  My PM handled everything to include the insurance company.  They earned every bit of their 10% of repair cost fee.

Find a reputable, like-minded PM who provides value to your company.  If the fees work for you then do business.  If not, then negotiate.  Once you find a PM that is willing to provide the necessary assistance at a price that works for you then try them out and do not be afraid to fire them.