All Forum Posts by: Alex Olson

@Anthony Steele You are doing the right thing - find a duplex, triplex, four plex and buy it using an FHA loan. You owner occupy that place and have the rest of the 3 units pay for your mortgage (probably more) and then, 1-3 years later you keep doing it until you are tired of having neighbors and then you continue to build your real estate investments. The key is doing an FHA loan on a 2-4 property. Around 3% down is all you need.

@Rob Bianco I think it is a good strategy...if you buy right (like anything). I would make sure you get a great deal on your heloc and shop rates. You may have to do a portfolio loan refinance vs a line of credit. You will want to make sure that you get it all under 1 bank. Depending on your risk tolerance you can leverage 80% as debt on multifamily purchases. A safer bet is 75% as debt. But, if you are wanting to pay back the heloc that fast you may want to speak to your banker about your strategy. They want you to be ultra successful so you keep coming back for more. 

@Jake Waslaski I would highly recommend registering an LLC. You will need it for any of the protections and other benefits - business credit, management, etc...You will also need it for a 1031 Exchange. You can do it as simple as you would like on incfile or talk to a local REAL ESTATE attorney.

If it is a good deal now you will be fine. What if in a few months you have a lot more competition because people are now back in the game and bidding on the stuff you wanted? I would not overpay right now but if it is a good deal you will be fine. You can also extend closing for 60 days to let the market setlle down. Then, if it seems like a bad investment at the end, pull back. Make sure you have a loan appraisal contingency in the contract. 

@Daria B. Is it seperately metered? If so, yes they pay water. If not, you can bill back a portion of the water or all of the water. I would take the average for the year and divide it by rooms or people or unit. Then, add that as part of their lease amount that they pay XXXXX amount in water per month. Be reasonable though. No one likes a bad landlord!

@Kyle Smith I would look closely at your lease documents and have your attorney review. I consider rent and bill backs all the same and so if they are late on any part of the total amount, it is considered late. But, my lease docs are set up to be that way. 

@Lynne Marquez I, too, used incfile. They have pretty good support. I would call/email/chat with incfile and see if they can provide you what you need. Get with your bank as well and make sure you know exactly what they need. Newer business owners need detailed guidance and I think these two institutions will help out. 

@JD Martin yes sorry!!!

@JD Martin walk away as quickly as you can. This seems way too complicated and much more than it should be.

@Dan Heuschele I would tell them you are not trying to low ball them. I would tell them you want to help them. Ask them what it is worth to them. Then, tell them what it is worth.