All Forum Posts by: Robert Freeborn

So you only see 60 per chair in the salon as the landlord? Is that per week or per month?

Shawn, will Cindy be responding to email info requests over the weekend?

If not, could you send me the financials in a message?

Thanks for organizing it Julie. My Thursdays end at 6, but I'm excited to be there. 

The commercial driving market is definitely in for a tumble. Personally, I'm looking forward to sleeping! 

Welcome! We live in a unique environment and we welcome you to it.  If you have any questions or have a deal you'd like help with, I'd be happy to help. 

@Steve Vaughan thank you.  Yes, it is a college town.

My original thought was to do college housing, but the city actually as a policy about no more than 3 unrelated adults living in one house. I'm still learning how to get around that. If we can do it, I really, really want to.  So thanks for the reminder to jump back into it. 

Exactly. I'm just using that to illustrate the market up here. They are all way overvalued for how they perform.

I'm doing 20k as a conservative estimate, but I don't honestly see it going terribly higher. Assuming the bank will only want to loan up to 80% of the appraisal value, and that the appraisal comes in at 185, that gives me right around 20k to work with.

This would be in my hometown of Bellingham, WA. 

Hi Fam,

I have a couple ideas for how to invest in the upcoming year that I'm hoping to get some feedback on. 

For background, I currently have no RE investments, but my wife and I do own our own condo. We bought it two years ago, and owe $130 on a 30 year mortgage at 4%. Recent comps for the area, have two bedrooms selling for the $190 range (thought it has a carport that ours does not), and ours is larger 3/2. 

My possible strategies:

1)  Take out a home equity line of credit on the condo. For discussion's sake, lets say we get $20k. 

We would then use that 20k to buy two small manufactured homes for less than $30k each. The market in the area for these units is $750 to $850. I can then hold that property and cash flow it.

Issues I foresee: 

a) I don't know if I can get two properties. Maybe only one.

b) I don't know what my backup exit strategy would be.  Even renovated, I don't see these units being easy to sell. That makes me uneasy.

2) Take out a home equity line of credit on the condo. Lets say $20k again. 

We would then use that 20k as a down payment FHA on a multifamily, house hack one unit, rent out the other three, and rent out the condo.

Based on prior estimates from a RE agent, we could rent our condo for anywhere from 1.3k to 1.5k a month. 

Issues I foresee:

a) Being able to afford the mortgage with vacancies. (I realize you build a buffer into this with the 50% rule, but it is still an issue I want to list.)

b) Finding an affordable 4-plex in my market. (For example, one recently was listed for $600k. The monthly rents were $4k total.)

1) Assuming I find one at a reasonable price, it would probably need a good deal of rehab. How do people traditionally go about funding this when you just get started.

3) Take out a home equity line of credit. $20k again. 

We would then find a local investor and partner with them on a deal.

Issues I foresee:

a) Working full-time, I worry about not learning a whole lot on the deal and not being able to make sure the money is spent correctly. 

What ways to you work with your partners when occupied with other deals or full time jobs?

Thoughts, comments, and suggestions are welcome. 

Thank you!

Personally, I would go the 4plex option and owner occupy one side. That would create rent free living, thus increasing your "cash flow" by not having your existing rent.  This holds true even if the rent doesn't completely cover the mortgage. You'll still be net positive cash flow each month.

I don't know the SD market at all, so I'll leave that for more experience investors in the area. Its a very large down payment, so they may have some better suggestions.