All Forum Posts by: Erik Williams

@Daniel Lopez, I think your plan is doable, however I wouldn't recommend  it for a first time investor.  Properties at that price are in low C or D neighborhoods.  That means you will have lots of crime, high turnover and/or evictions, and lots of damage to your property.  Plus getting a loan for a $50K property could be problematic bc banks just don't like to loan at price point. On top of all that, you will be managing it out of state, it seems like way more than a new investor should take on.   I should know, I jumped at investing in bad areas without knowing what I was doing, and I paid for it.  I still made a little money, but I don't know if the time I putt into it was worth the trouble.  

I would suggest that you work on your credit and your cash reserves.  Once you are able to qualify, I think selling you condo, and using that money to house hack a multi unit place in state, where your team is already established, would be your best options.  You will gain experience as a landlord, and equity, with only a little bit of your money invested.  Plus with $50k down, at 3%-5% down, you can get a very good, cash flowing property in Colorado. Do that a few time over the next 10 years, and you will be very well off.  

 I know what a lot of us are saying here isn't what you want to hear right now, because you are excited and ready to go, but getting that strong base set up is key to a successful investing career.   Remember the long game, 

Make sure you test for meth in those units also.  That is a huge problem in the Springs.  

I think it is a great idea. I wish I could go back and house hack my way to riches. The one thing I would suggest is that you house hack a new tri or 4plex every year if possible. Currently you only have to live in a house for 1 year before you move and new house to hack with the low down payment. Like Ralph said, make sure you include you PMI in your modeling. Good luck on your way to riches.

Thank you Kevin and Dave for your help.  It is much appreciated.

I am currently under contract to buy my first Multi-Family (4plex) property and actively looking for my second property. Because of 1031 exchange rules, I have to make the purchase of the property under my own name, but would like to put it in a LLC to protect me in the future. My questions, does anyone know how long I have to wait before I can transfer my property over to the LLC? Also, would transferring the property (by quick claim deed possibly) violate my 1031 exchange rules? Could the transfer be seen has a sale? Lastly, how will the transfer affect my financing (will be putting about 30% down). Thanks for all your help.

I am also interested in deal in the Denver and Colorado Springs areas.  

Thanks to everyone for all your help.  We are still debating what to do, but you might be receiving a call from me in the future.  

I was wondering if anyone could answer a couple questions about 1031 transfers.

1. Does the 1031 transfer have to be for the complete sale price of the property, or can you take out your original investment and just transfer over the proceeds on the property to the 1031?  (ie: bought the property for $100,000, sold it for $200,000, can I take the $100,000 of proceeds and put it in a 1031 transfer while using the $100,000 of original investment for something else and not pay any capital gains on the sale of the property?)

2. If the property is a rental property that I put into a 1013, can I by a vacation property that I will also rent out has my next property and use the 1013 transfer for that purchase.  

Thanks for any and all help.  

So just wanted to know what some of you all thought of this deal for a buy and hold rental condo.

Purchase price: $105,000

Improvements to get it rented: $7000

Value after improvements: $120000

Monthly rental: $1150

HOA: $277

Insurance: $60

Taxes: $40

Interest: $271

Vacancy: $115

Maintenance: $57.5

I am using my Helco to make an all cash offer.  I have not yet decided whether to refi this property or just pay back the Helco.  If we just pay back the Helco, then the cash flow will go directly back into the Helco to pay off the loan.  If I refi the property, then the P&I will be about $450 a month.  All these numbers are conservative.  My estimate for the improvements was only $5000 and I am sure I can get about $1250 monthly rent.  Also, the vacancy rate I used was 10% but the area rents well, so I would guess that won't be the case.  But this being my first investment property, I wanted to make sure I was conservative with my numbers.  Just want to know if I am missing something or if anyone had any ideas.  Thanks for all the help. 

I am just getting started with real estate investing and had a thought about how to finance my next rental property. Do you think it would it be easier to get financing for the property if I first bought the rental property with cash, then refinanced it later on once I had a renter in the property? I currently have money in my HELOC and some cash saved up to make this happen. My thought process is that I could buy any property I wanted without dealing with the whole loan process and all the hoops you have to jump through with them. Also, I would have a stronger offer with an all cash offer. My only concern is not being able to get financed later and having all my investment money tied up in one property.Thanks for all the help and knowledge.