All Forum Posts by: Evan Haslund

@Mitch Messer, thanks for answering so fast!

Yes! The last thing I want to do is hurt my relationship with my family. I'm not looking to get a deal of the century, in fact, I'm happy to pay right around asking. The house is in decent condition, it just needs a couple minor repairs, paint, and updated appliances.

They don't own it free and clear, I think they're 10 years into a 30 yr mortgage. I could be wrong though. We need to sit down and talk details, I'm mostly looking for what my options are and what's the best way for both parties.

I was reading about being able to be put on their title, and refinancing in a year or two and getting them off, thus paying them the equity and paying their mortgage off. Is this something I should keep looking into?

And lastly, thanks for the question about medicare/Medicare. I'll check in on that.

I have the opportunity to purchase a relatives home because they'll be moving into an assisted living community later this year. I just purchased my 3rd home in February and I'm about to rent out my second home.

My strategy so far has been to occupy the residence, then move out after a year or two and rent it out. I'm at the point where I don't want to move out of my new home for several years (mostly it's my wife begging to stay in one place for more than a year or two, I don't blame her lol). The new house was purchased for 77.5k with a down payment of $7750,and it appraised for 106k.

I'm thinking of possibly seeing if my relative is interested in seller financing, they've owned the home for 10 years and purchased it for 62.5k. I'm really early in the stages of this, so I don't know exactly how much equity they have in it yet, but let's say they have 20k in it. Would it be smart to try and get a line of credit from my current house since it appraised for a lot more? I could pay them the amount of equity they have in it, have them hold the note, and refi into a mortgage in a couple years. Does anyone have any thoughts?

Good call! I've been planning on going to my local REIA group to get some advice

@Cole Swartz, I plan on saving all profits for a year or two until I have a good savings built in. After I feel I have a good savings set up, I'll still stick to the 10-15% towards repairs. I'm basically trying to figure out if this is a "deal" to most investor standards.

Sorry if the title is confusing, but I have quite a few questions regarding a potential rental property and about getting a partner.

Let me give a little background...I am self employed and my wife works very part time. We just closed on a condo to live in about two weeks ago. Since we have been in the process of buying this house, I have been doing my research about getting into rental properties. We don't make enough to take on a second mortgage, so I would want to bring in a partner because as I've heard multiple times...50% of something is better than 100% of nothing...

First, how do terms normally work when partnering up. I would do all the work, and could even do a portion of the financing. All I want is for someone to take on the mortgage with me and that is it. All I'm asking is for the partner to take on some of the risk. So my main question is; What kind of financial split is normal? Do we do 50/50, or since I am doing all of the work, do I get a bigger cut. I'm not trying to sound money hungry, I just want to know what is normal and fair.

Second question/topic is whether these numbers work or not. I spoke to the owner of the house, their situation is the owner was a 90ish year old lady who passed away early this year. Her son and daughter in law are getting it cleaned up to sell it. I am the one who went in to clean it because she got someones number, and they gave her my number, so I went in to clean and asked her a few questions about her selling it. She is not interested in seller financing, they just want to sell it and cut ties. Her mother in law is the only one who has lived in it I'm pretty sure, and its from the 1950s. It is deceptively larger on the inside. It's a 3 bedroom, 2 bath. It's a little over 1,500 sq ft and she said she was getting it appraised and she would call me before she did anything else. She originally said they were looking to get around 50-55k. Before I arrived, she was talking to a realtor and he told her they could probably rent it out for about $750 a month. The mortgage should be around 280/mo for a 30 year loan, and taxes + insurance should be around 120. I bought my house for about the same price, so the numbers should be pretty similar. The neighborhood looks like a mix of C and B. It's not in the ghetto by any means, but it's not the nicest part of town either. It is maybe 1/8 of a mile from the main road in town. I don't think it would need much work, the place is a bit aged, but it looks very well taken care of. I would just need to get the wallpaper off the walls, paint, and I didn't notice anything that looked damaged. It looks like all appliances including washer and dryer would be included.

With that said, I know this is a very lengthy post, but any advice would be super helpful. Thanks for reading guys!

PS. Here are the numbers that I've run, could anyone tell me if I'm missing anything or if I should fluctuate anything?

Mortgage $55,000

EXPENSES

Monthly Payment-$280 ($3360/yr)

Taxes-$60 ($720/yr)

Insurance-$60 ($720/yr)

INCOME+750/mo ($9000/yr)

Monthly Profit=$4200

Taking in account potential damages, I wouldn't want to touch any of that for at least two years. After two years, I don't mind accepting the rest as income. I'm guessing that profit would be taxed at 15%, which brings it down to $3,570. If that were split two ways, that would come out to $1,785 per person. So would that be worth it?

Thanks Lee!

I was planning on going to the Warner Robins meeting this past Saturday, but I had to travel to Chicago last minute for a funeral. I'll be sure to make one of the next ones.

Hello BP Community! 
My name is Evan Haslund and I recently just closed on my first house. The plan has been to live in it for about five years, then rent it out and get a bigger place. In the process of buying this house, I've been looking at ways to pay it off as quickly as possible, and as an avid listener of podcasts, I found BP. 
I've always been interested in buying a few houses and renting them out, but since I now have "the itch", I want to get more serious about getting into real estate investing. 
I've always been one to do my research before I make any big fecisions, so I'm looking to learn as much as possible. I'm currently finishing up my BAS in Business Management , and I run my own residential cleaning service, which I am also in the process of expanding. I will most likely wait until after I finish my degree to take this on, but in the mean time, I want to get involved in my local REIA and get familiar with my local housing market.
I'll be sure to ask any questions as they come. I look forward to getting involved here and meeting you guys!