All Forum Posts by: Emmett Burton

I cover very large PE funds in my day job and I can confirm there are a number of giant sponsors developing here. I don't think I've seen any of them buying SFH though.

@Greg Szymbor

“You miss 100% of the shots you don’t take”

- Wayne Gretzky

- Michael Scott

@Daniel Lynch is this situation any different than if you two were splitting rent elsewhere and paying a landlord? I don’t think so. It’s all personal preference, but I would think that each of you would want the relationship to remain equitable where each person is contributing equally (albeit maybe through different measures). However you decide to split the mortgage with her, you still put down the initial equity check to acquire the property to advance your relationship with her.

I think you should rest easy knowing you’ve already been generous.

Have an update! I had been looking at a townhouse community in a booming neighborhood of Charlotte for a long time, walking through many units. This past Friday night, the nicest looking one I’ve seen went on the market. I walked through yesterday, put in an offer right away after hearing it had been shown over 15 times already and had my offer accepted this morning! It’s a 3bd/2.5bath and will be my primary residence and I will Airbnb the open rooms.

Although I was open to finding another out of state investment, I saw this as a great opportunity to 1) house hack and live for free; and 2) learn the Airbnb game so I can add another set of skills to my tool belt.

Closings are set for 6/28 and 7/14. It’s going to be a crazy summer and I can’t wait!

Great advice; that makes total sense @Marc Winter. 

Thanks for the advice, guys! 

Update: My second offer was accepted after the owner's initial counter! My inspector has fantastic reviews on google and he said his report will have nearly 100 photos so I think this will be comprehensive. One thing to note, I realized on the seller's report that the HVAC was built in 1988. I already got this property 10% below asking and asking was already well below market. Assuming I need to replace this, how receptive are sellers to concessions for something that should have been replaced long ago?

Thank you both for the advice! It was on the market for ~70 days and the tenants are month to month. Its a small town in Wisconsin I know decently well cause my parents live there; I live in Charlotte, NC. It’s a few blocks from Lake Michigan and has been updated recently. I think the thing that scares people away is that everything in the town was built in the late 1800s and one of the tenants has a ton of clothes thrown all over the place. 

My realtor thinks it will appraise for a lot more than I paid for it given the area and direct comps within a block or so, making it a solid candidate for a cash-out refi.

@Taylor L. as for how passive I want it to be, I don’t want to be thinking about it every day but I am fine with being the Sherpa to navigate it through this process. I’m in investment banking and work a lot, so even if I invested local, I’d likely need a PM.

@Alyssa Dyer I’m open to investing anywhere that makes sense. To start, I’m just targeting markets that I’m familiar with based on having family or friends in the area. Luckily, I grew up in the Midwest, which is where my family and friends are so that’s where I’ve started. I’ve noticed CIN, MKE, KY and KC are the best candidates.

Sorry for the long winded answer. I’d love to hear what you two are currently working on!

I’ve liquidated nearly 3/4 of my stock portfolio and recently acquired my first investment property - a duplex that is currently rented and doesn’t appear to require much work. I’ve found some other interesting small multifamily investment properties; would it be a poor choice to pursue these? I’m not over-leveraging my properties or depleting my overall liquidity, I just want to put my cash to work. I am also using PMs so I don’t find myself signing up for another job; want to keep this passive.

Am I getting out over my skis?

There is plenty of time to sleep when you’re dead.

I’m just starting out and trying to acquire my first property. I live in Charlotte and the numbers just don’t make sense out here so I’ve looked out of state.

I think I've located a duplex built in 1899 in a bigger city in Wisconsin that my parents live in so I know the area fairly well. The duplex is fully occupied with rents that are above what I was expecting. I did a virtual walk through with a reputable realtor and she said it looks to be in good condition with new floors and nothing cosmetic that seems to be terribly dated. Even using conservative estimates that assume expenses will be 50% of gross income, the property seems to cash flow. Additionally, this looks like a very attractive BRRRR given the price point and small touch ups that can be done. Are there things I'm not factoring in here? I've been doing a lot of research and reading a lot, but I want to avoid the proverbial analysis paralysis. This looks like it could be too good to be true — caveat emptor.

I know the first investment is more about getting into the game than finding the perfect property, but any suggestions would be much appreciated!

Emmett