All Forum Posts by: Hannah Joy

This could be problematic, HELOCs on non-owner occupied rental properties are not each to come by. Do you have other ways to fund the rehab? Also $2500 for a bid is extreme, if this is what it takes to just get someone to walk your job I’d be concerned on the kind of premium you’ll need to pay to get the work done.

@David A. I would need to establish residency I believe

0 Votes

Quote from @Natalie Schanne:

@Hannah Joy - Do the deal. Figure it out. It will be worth it. Make sure your partnership agreement is upfront about who owns what, who is contributing what money and time, and who has the final decision if you two disagree on anything. It should also include a divorce / buyout clause.

I am crushing rentals right now and I am hearing my friends getting incredible rents from long term and short term furnished like Airbnb - if the 2 bedroom apartment is $1900/mo plus utilities at the apartment complex, on Airbnb it is renting for $4000/mo (furnished, utilities included) on a 4+ week stint.

Good luck to you and your partner. For what it’s worth, consider taking personality tests so you know how to best communicate with one another.

Good to hear you are crushing it! Bravo! And thanks for the advice, mixing business and friends is tricky for sure

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Quote from @John Bartlett:

@Hannah Joy you might not be the money partner, but you NEED to put money in. You only need to put in a nominal amount like $1000.00 into the deal. You you be much happier at tax time, it will change your portion of the deal to capital gains from a higher tax rate.

Check with a CPA, but I believe if you only put labor into a deal, the income is treated like self employment income instead of capital gains.

Thank you! I didn't even think of this! I'll be sure to check on it

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Quote from @Joshua Janus:

Quote from @Hannah Joy:

Good point @Joshua Janus, I scheduled one but should probably get multiple. Its tough because each estimate is 2500

Who is charging you 2500 for a walkthrough / bid? That is crazy. Contractors in my market charge 100-300

That would be a complete estimate, But good to know that sounds high

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Quote from @Brian Plajer:

who is paying for the rehab?

Im planning on a HELOC, either the subject property or my rental

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Good point @Joshua Janus, I scheduled one but should probably get multiple. Its tough because each estimate is 2500

1 Vote

Quote from @Kevin Woodard:

What's the rehab budget? What is the ARV? What is the exit strategy?

Good questions! Just scheduled an inspection, I'm thinking it'll need 100-150k in rehab, ARV - I'm guessing 6 or 7 conservatively, no exit strategy at the moment - just hold on to it for cash flow and leverage.

1 Vote

I'm partnering with a friend - she put an all cash offer for 350k on a multi family in Northern Cali: four one bedroom units built solidly with concrete block construction. Units do need renovation in all four bathrooms, new flooring and some interior wall repairs, also need new sewer to the main. Great location, seems like a gem that will need sweat equity. I'd be the sweat equity, she'll partner 50/50 either revenue or equity or a split of both. How should I structure this? Need advice and fast! We didn't think the offer would be accepted!

4 Votes

@Chris Mason I “acquired” as in, the cash is in my account ;)

1 Vote

@Steven Foster Wilson oh good to know, thanks!

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All Forum Posts by: Hannah Joy

Hannah Joy has started 26 posts and replied 88 times.

Post: Offer accepted - do I go through with it?

Post: Offer accepted - do I go through with it?

Post: Offer accepted - do I go through with it?

Post: Offer accepted - do I go through with it?

Post: Offer accepted - do I go through with it?

Post: Offer accepted - do I go through with it?

Post: Offer accepted - do I go through with it?

Post: Offer accepted - do I go through with it?

Post: Hard Money Loans - going rates and terms

Post: Hard Money Loans - going rates and terms