All Forum Posts by: Eric Blair

So with how expensive real estate is and how high the rates are and also extreme compition with investors with much deeper pockets than mine, I was thinking of maybe getting a duplex built. 

There aren't really any multi family homes in my area except for the bad parts. In order to have anything built I would have to hire out 100% of the work due to already being full time W2 and family with young kids. So basically just finding a contractor for a custom duplex. Maybe something bigger. Would the cost of the build, land and rates even be worth it? Renting wouldn't be an issue. The issue would be whether or not I cash flow, break even or end up cash flow negative. 

I am just trying to come up with some strategies since it's been years since my last deal. Thanks all!

Hey OP I can give advice but can't help you find a home. So I live in Prattville and can point you to some areas. If you don't care about schools, then you can live in Prattville, Millbrook, or Wetupmka. Personally, I like wetumpka because it's pretty. School wise though Pinelevel and Holtville will be top choice for public schools in the area. I only have a single rental in Prattville and did it exactly like you are wanting to do. But I got lucky and did it pre covid so it was cheaper. But I got a house and it didn't need a whole lot. Lived there for a couple of years and then moved. It's a solid rental. 

Also I would avoid buying in Montgomery. I was a cop there for a number of years and I've seen how bad it can be. Although tons of people build portfolios there, I just can't bring myself to do. Maybe if I didn't have kids. Anyways, feel free to send me a DM. You won't struggle finding under $300k

@Dustin Woodley Hello, I live in Prattville. Would you also be willing to help me find a property? I'm basically in the same situation as OP but no longer in the military. I'm looking to do conventional or possibly use my VA for the same reasons as OP. Thanks!

I'm gonna be honest here and that may not jive with most property owners. I'm in cyber security and very much take digital privacy seriously. Even if having a camera is legal, I would not do this. Privacy laws in America are seriously lacking. I just personally feel this is beyond wrong. 

Now from the tenants perspective, if I were in their shoes, it would be a cold day in hell that I get recorded and possibly monitored 24/7. Let's just say that the cameras would suddenly stop working with zero physical evidence to point the blame

Before I comment, understand I only have one property and am totally NOT a professional

But that being said, I'm kindve like you. I've got kids and a wife and we don't really want to move over and over to fix build our properties. It's too much. Plus I need savings for emergencies. So we are staying put until I can just save enough to buy a flip/ rental. Just my 2 cents

@Lindsay Davis thanks for the reply! Yea after reevaluating I've decided to pass. There's gotta be a better deal so I will keep searching. Thanks for your input!

@Seth McGathey thanks for your response! Also I love that idea of paying the HELOC back and drawing from it if I need it! I didn't even think of that. That's why I come here. That credit card thing sounds awesome. I'll see if my bank does that. As of right now I have not found a cheaper house. I'm ok with holding for a year or 2. I just need to get my 2nd property since it's been 4 years since I bought my first one

So I'm still new to investing. I have found a potential 2nd property. I'll list the details below

Owner died so it's an estate sale by the family. They listed this house at $239k, which is the going rate for any other house in the neighborhood. Upon further inspection I discovered that that roof needs to be replaced. It's leaking, which caused water damaged to the ceiling drywall. House smells like cigarettes, so obviously painting. 

I got a quote for the roof for $9500, which includes replacing the damaged OSB. The paint and minor repairs of the house I can do myself. I figure $3k - $5k for the repairs. So clearly the house is not worth $239k. I want to offer $215k.

Now because I do not have any capital (lost 35% in the market since Jan) I am getting a HELOC on my primary for $50k, which will be used as a down payment. Then either a conventional or DSCR loan, if that is possible.

Here is the house detsils

location is Prattville AL

$239k

1440sqft

$43k down

Loan was quoted at 8%

HELOC 7%

Up to $15k in repairs

House will only be worth $239k afterwards

Rent will be $1700 (could possibly be $1800 but that's a stretch)

Mortgage after PITA will be $1200 and then $300 for the HELOC (interest only payments for the draw period)

Cash flow $200

I'll profit nothing because any remaining money will be set aside for maint and CAPEX

So here I am asking you seasoned investors to roast my deal. I have not made any moves yet. If the seller rejects my offer then I move on because the numbers are much too tight. Thanks y'all

@Savannah Wallace thanks for clarifying this!

@Lindsay Davis thanks for the response. Really it's a mix of the 2. I don't have any capital (far less after today) to get a new property. Even if I could find a new property I was hoping to get in to multi door properties but those are so uncommon in this area