All Forum Posts by: Account Closed

Depends on what your goal is for investing.  Cash flow obviously like you said. But what strategy.  You buying a multi unit 4 or less and living in one to get the best interest rates or is this strictly a investment property?

Based on your statement of you already are a renter, I am going to respond based on it as an owner occupant. 

For me personally I wish I had learned about house hacking 20 years ago, I’d probably own 30-100 properties and I’d be retired by now. I would love to have had someone else pay the majority of my housing expenses.  

Go for it.  Do the math and make it work.  If you are house hacking plan to refinance out before you move again to get rid of the PmI

Good luck

I don’t allow tenants to do anything involving my properties.  For me I’d rather pay more then have any issues down the road. 

any profession that is stable and typically does direct deposit.  

Take my advice with a grain of salt.  Are there any tenant owned homes?  

What’s those lot rents?

I agree if they are run down you could give them away for 2-3k without putting money into them.  

I’ve been told and believe the hard part a turn around park is  filling the park.  

How many lots is the property?

Price per lot?

They on private utilities or city?

It all plays into the cost basis for the property. 

I am using excel.  Doesn’t seem to be an issue at the moment.  If I scale up larger I will probably move to some more organized software. But for my  size and seemingly yours it should be fine.  

I allow pets but I make it not worth it for them to have an animal there.  200 dollar non refundable and 20 dollars a month. 

As far as the lease violation I would make it hurt that much more for them.  300 dollars non refundable fee and 25-50 a month. Or if you want kick them out.  You said it’s a C unit so be firm with them.  Don’t bend your policy or make money from it.  

Yes it is more important with family then a business, would you do a business with a stranger?  Well that stranger isn’t going to be coming over for Thanksgiving dinner.  

Yes draft up a legal agreement.  One thing to take into account is that when he passes away (because death and taxes will happen) that the share of the property goes to you and you alone.  He can give his other assets to other family members but upon death your investment shouldn’t be diluted.  

Only takes a few searches in a county record to see the deed of people that didn’t plan for death.  My largest is 47 people on the deed with 7 estates listed. That property will never make anyone money and will most likely be lost to the fees of an attorney.  

So assuming the two units at 1,250 a month are you accounting for replacing furniture and items in the unit over time?

Things that bit me some.  The property tax is that based on your purchase price or the previous owners?

I don’t see any capex expenses allocated. And your repairs are super low for 8 units.  

How old is the building?  How old are the roof(s).  Two story or one?

What about property management?   You have to account for that for your figures or you are making it appear like a better deal then it is. 10% is pretty standard.  

Your numbers are thin at best and more then likely not remotely close to how it will actually perform.  If you want the deal go for it, but be honest with your numbers.  

you’re  using wishful thinking.  I have a similar property and the numbers are much thinner then you project.  You need a rent roll and actual balance sheet and a in depth inspection.  What you don’t know will destroy not only your cash flow, but you ability to get another property or the motivation to buy another one.