All Forum Posts by: Gia LaForge

The tenants moved out of our rental over 2 weeks ago, and I have not heard anything from property management about it, no is it listed on their website as available. I realize it takes a little time to clean, repair, etc., but if the PM knew their lease was up, why wouldn't they list it as available on a future date or at least notify us? We live next door, so we know no one has been there to clean, mow, etc. What is a reasonable expectation? We have planned for vacancy of course, but we would also like to see them working to get it rented in a timely matter. Am I being too crazy? TIA!!!

I am from Bozeman, and since Bozeman has exploded over the past 20+ years, you're right that a lot of the houses here are new. Although I'm sure there are deals out there somewhere, everything is receiving multiple offers for over asking. One agent just told me she received 12 offers on a 1.1 million property, it went for over asking, and many of the offers were cash. She also said a lot of what she is selling are being purchased as second homes. Nothing is sitting on the market for long. Development in the valley here is pushing as far west as Whitehall right now, so I'm wondering if Butte might see growth next. There are lots of older homes there to rehab, but also lots of inventory for rentals it seems.  

We just found out the the other half of our duplex will be coming up for sale in the next few months, but as a rental, it would basically be a break even after expenses. I know we can't buy and count on appreciation, but watching the market over the past few years, I can't discount the possibility of purchasing it. Then we would own a duplex in Bozeman, and I just don't see that being a poor investment. Then again, we would be purchasing high and taking out a mortgage. I'd love to know your thoughts about that too. 

Just one week ago I was going over options for my first investment property with a lender, and she said this was coming down the pike. Maybe it's just not a good time to get into REI right now. Although I do keep hearing, the best time to plant a tree was 20 years ago, and the second best is now. Is it a good time to for deals or a better time to wait it out?

Yes, thank you! I'd love help exposing anything I am not thinking of correctly!

1-Umbrella Mortgage payment=3,000 and Rent = 2,400
If we bought the property with the umbrella mortgage, I don't think there is cash flow, but rent certainly would help pay our mortgage at a reduced rate.

2-Or we could use existing mortgage cash-out refi to cover down payment of the other side, so just thinking of the numbers a different way.

Mortgage 1 payment-$1,400 and Mortgage 2 payment-$1,600 with rental income $2,400.

The property is 15 years old. Other comps are selling for over 1 million in about 2 days, so we would have immediate equity as well as an exit strategy. Obviously we should have bought the other side in 2016 when it was listed for 260K! Thank you for your help!

Hello BP, 

We have a couple of opportunities opening up, so I'd appreciate your advice about these:

1. Option 1--buy the other half of our duplex-- We currently live in a duplex, but we've been told that the other side of the duplex will be for sale this summer for around $450K. We currently owe $200K for our side. I know real estate is going crazy all over the country, and it is crazy here too. I ran the numbers, and we would be cash flowing around $600/month. My husband is worried that with both properties, our mortgages would be $730K if we used equity for the down payment, and that just seems like a lot to get into for a first deal. I know some people can house hack and have their whole mortgage covered, but that wouldn't be the case for us since prices are so high here. How do we save for CAP Ex and maintenance when not all of the umbrella mortgage would be covered by the tenants on the other half? How do you handle the split between the business and personal?

2. We have a friend who flips houses about 2 hours from here. He offered us a property that we could BRRR, but it has mold and hasn't been touched since 1980, so there is A LOT of work to take on. That seems like a lot to take on for us, especially when the property would be vacant for 5 months during the rehab, and we'd have to pay the mortgage. It would also be harder, but not impossible, to self manage a property that is a few hours away.

I know in REI, we are all in it for the long-term benefits; how do we know which will be best? It's great to have options, but it's also not really helping us take this first leap! Thanks for your help in advance!

Hello,

Thank you for this! Through a really weird--and in my opinion--divine twist of events, we are suddenly on the real estate path. I don't know much about meet ups, but I would love A and B. Many times over the last few weeks I have wished I could find people in our area to talk to! Thanks! I'll keep an eye on this post to see how it unfolds!