All Forum Posts by: Evan Bellingar

Heather,

Welcome! I think you are off to a great start, and consistent house hacking over time is a great strategy to build massive wealth.

Good luck,

Evan 

Wow, a 101 year lease for a cell tower! That's a new one!

Good luck!

Evan 

Hi Chris,

Your expenses seem high, as they total 69% of gross rents (see 50% rule). Insurance is listed twice, and taxes and insurance seem high, but you know your market better than I do. Do you have sources for these items? Nothing wrong with getting the property under contract then getting quotes on insurance, estimates of taxes, etc. if you are in a hurry.

In my market, the 1% rule works well for me. 

Let us know if you move forward. 

Evan Bellingar 

I use Shannon Moxley out of Tigard (you can google her or PM me for contact info) she has been good for us.

Evan 

Nick,

You should maximize the redundancy in your plan/process/finances. Buying below replacement costs is one layer of redundancy, large down payments to keep your payments low is another, large cash reserves, geographic diversification, other sources of income, etc. etc.  all add layers of redundancy.

Depending on how you count, on average, there has been a recession every 5 years since 1790 in the US. So we should neither be afraid, nor surprised by the next recession, but we can be prepared. 

Evan 

Hi Chris,

I agree with several posters: you make an offer that makes sense for your business, and see what they counter with. You can go through the math you used to arrive at that number, but you don't have to. Ultimately it is their choice to accept, counter, or decline. Their asking price is just the opening salvo.

What are they asking, what do you think rents will be, and what are you thinking of offering?

Good luck,

Evan

If you like Pizza, Portland has Ken's Artisan Pizza.

Evan

Hi Glenn,

I would highly recommend saving up a good down payment for your first property, and buying a property that doesn't need tens of thousands of dollars in repairs. 

There are two reasons people want 100% financing: 

1. You are a real estate super star like Ben Leybovich or Brandon Turner and you are getting great (or infinite) cash on cash returns because you can.

or

2. You don't have the money for a down payment and you need it. 

If you are in group number two, the power is with the hard money lender and the seller to name terms, and any deal will be challenging. 

If you don't have the money for a down payment, having reserves will be a challenge, and any problem with the property turns what you thought was a blessing into a curse. 

One idea: save money every month and invest in a Real Estate Investment Trust. You are still investing in real estate, (so you don't feel like you are losing more time) and as that money grows use it to fund your down payment and/or reserves. 

Good luck!

Evan

Hi Joey,

A lot of great advice provided by other Bigger Pockets members. 

Have you considered getting a property manager? Obviously they take a cut of gross rents (8-10% in my area), but having a pro manage your unit for a year could give you some peace of mind. You would see their lease and screening process from the owner's perspective and get more comfortable with the mechanics of these arrangements. 

Nice job on the duplex.

Evan

Nice! How did you finance the deal?