All Forum Posts by: Erin Church

I'm likely in the sell boat also. However, is there an opportunity for you to owner finance them? People will often pay much more for a property (even a fixer upper) if owner financing is an option. This could still get you some cash flow, but release you from any issues with the houses. 

Now, that may or may not work with you having two mortgages you need to knock out in a month. Is it an adjustable rate? Is it a balloon? If you have the full balance of the mortgage due in a few weeks, you may need a wholesaler to buy the properties that have mortgages so you don't lose them to the bank. 

Hey Tiffany,

So sorry to hear you're burned out. As a person who also does live-in flips and renovates rentals, I get it. I think there is a chance that you don't actually hate your rentals, but rather, you hate where your mental health/stress level/amount of free time is. The rentals are the easiest thing to ditch and your brain has decided that you need to let something go... which is easier if you hate it rather than still love it (as you mentioned you previously did). 

I think once you are over the remodeling hump, take a pause, enjoy some "free time" and less stress, and then decide a few months after that if you want to sell. It's just a matter of getting through whatever remodel(s) you're doing. 

For now, it sounds like you're making enough money that you can pay people to do the tasks for you. Forget the immediate money and pay people to take care of the things that are feeling heavy. That can look like having a "complete" property manager or just calling reputable companies for all issues that come up. Also, maybe use a couple of vacation days to just "be" and try to recharge.

When you have a little extra "water in the well", things like broken light fixtures, random animals, and so on aren't a big deal. If they are, keep the full service PM. 

All that being said, if you are at "the very end of your rope" do whatever you need to. Sometimes there just isn't enough gas in the tank to get over the next hump and if you've hit that point, do whatever you need to to lighten your load. 

Love that you're always looking to improve! I will say that while I did fill out for one of the podcasts, I would have been interested in leaving some feedback on other podcasts (but I didn't want to fill out the entire survey again). 

With the current survey, if there was a podcast that wasn't the most listened to because someone didn't like it, there isn't an easy way to collect those opinions. So, I think you'll get the feedback from folks that love each of the podcasts, but may miss the biggest areas for improvement from those that don't.

I would have tweaked the survey to have a final set of questions "anything you want to share about... and mention the "non-chosen" podcasts.  Adding some prompts such as "If there's a podcast you just don't love, we'd appreciate hearing that too."

 Hey Christian,

I have a feeling you're going to have a tough time getting the lender to lend if they know it needs a new furnace. Does the current one work? I'm wondering if you could offer them $110k and have them do the repairs first (some contractors will wait until close to get paid or offer financing) and ask for 2% in closing (what seems to be the most conventional lender will allow on investment). Most conventional lenders won't allow repairs to go into escrow. You could potentially bump up if you needed to, but having someone else do the work could be good and the lender will prefer having a higher mortgage amount. :)

@Jason Cox

If you have in your lease that the tenant is responsible for bugs, your kind of setting a bad precedent.

I would let him know that you’ve tried to be kind by helping, but you can no longer pay for things clearly stated in the lease are the tenants responsibility. You know there were no pest issues when it was rented 1.5years ago. I’d tell him he can pay for an inspector. If he is uncomfortable, let him leave/break his lease. It will save you in the long run.

Good luck :)

@Rufino Padilla

I’m going to share what plenty of the “big boys” around my area say - if it’s a screaming deal, you can find a partner :) Are you in local FB investing groups, attending Meetup’s, looking through BP for experienced folks in your area? That would be a good start. :)

I know a new lender that will partner and provide 100% funds on purchase and rehab as long as it is 70% or less of the ARV. It's expensive money though. However, if expensive money/partnership gets you the deal, then it's worth it :)

@Chadwick Cotner

I got my husband onboard with a live in flip and a super cheap rental that made a good return. Can you do a live in flip first for some extra capital in the long run?

Hey Tyler,

Are you an experienced investor and/or do you have trusted folks on the ground? I ask because not all wholesalers (or any group of people) are on the up and up, and pictures can hide lots of flaws. 

That being said, look for "we buy houses in [city] NC" and see if you can contact them. Also, look on facebook for investor groups as well as real estate for sale groups in those areas. Wholesalers will often post deals there, and you can also post to ask for wholesalers. If you see a deal, post your email address under it in the comments - other wholesalers will end up adding you/reaching out as they have deals. The investor groups can also be a good place to ask for contractor recommendations, or at least ask if anyone has used someone you've talked to.

Best of luck finding a great deal! :)

What are you using for financing? If it's cash, ignore the next parts. :)

Is it possible to wrap the rehab into the mortgage? See if the lender will allow money to go into escrow for some of the bigger repairs. If not, then see what amount the sellers can contribute (likely 2%), or see if they're open to having the furnace replaced by a contractor that will take payment from the sellers' proceeds at closing (and add the cost onto the purchase price). 

I think you're saying you can bring in $24k per year. Seems like there's a good potential for delightful ROI assuming there aren't other "crazy" factors and you can put a limit on utilities. :) Is the duplex metered separately? If so, then it seems like tenants could put them in their name and work out the split. If not, I would put a clause in the lease that utilities for the building are expected to be a certain amount. If they are over, then the overage will be equally divided among all residents. (If that's legal where you are.)

Looks lovely! What do the unit rent for? Are you having to renovate the other unit also or did the $15k cover both (because you're magic)? :)