All Forum Posts by: Hunter Reed

Tomas, qualify for a FHA loan which should give you 300k - 450k to work with. Buy a 4plex live in one unit and rent out the rest. You could easily find a well maintained 4plex that passes the FHA inspection for qualification. The more units you have the better. Why settle for a 2plex or 3plex when you can settle for a 4plex. Overtime you'll create more equity and have a higher rent check each month. I'm moving to Fort Worth, TX in the next year and half and will be doing the same thing. Good luck, you got this!

Caden, first off congratulations on having 250k ready to be disbursed in this current market and society. If I had 250k at my finger tips I would find a 30 + unit apartment complex that the seller would be willing to carry the contract for a 10% down payment. I would then raise enough capital to rehab the property to raise rents. I would also agree to 5 to 10 year ballon. Before the ballon payment comes due I would refinance the property to pay off investors and the ballon. The trick is to find seller financing, which means building a relationship and explaining your WHY. Good luck on your investment journey!

Eric, Cost Segregation is a great way to defer and avoid paying taxes on your property. In the comments above no one has mentioned the cost of having an experienced professional asses the property. With that being said I would wait until you have acquired at least 10 units. If this is your first investment property then it is simply not worth accompanying a cost segregation. It cost anywhere from 5k - 10k for the study depending on the effusiveness of the property. With this being your first and only property you would take a loss. The cost segregation study would cost more than the amount you would save on taxes. Grow your portfolio and choose the property with the greatest value. This will ensure a higher return on your cost segregation study. Once you do this you will have tax money left over to roll into other properties. Remember, once you complete a cost segregation on the property you no longer can do it again unless the study is done on another property in your portfolio.

Enda, in order to find Tax Deeded properties you have to find them yourself. Drive around or use google maps and input the property addresses into the county's real estate property search. Once you enter the real estate address into your county's real estate property search find the tax data on the property. This will show if the current owner is behind on tax payments. Next, you'll need to see when your county is selling the tax deed. Hope this helps.

Sean, this is a question everyone asks who is getting their feet wet in real estate investing. I highly recommend finding a mentor that can help guide you through these incepting questions. I can speak on this first hand as first started. I highly recommend you read "Out of state real estate investing" by David Greene. This book will walk you through the steps on how to build a rockstar team. This book helped me out tremendously and allowed me to find the right people for my team. 

How many Square Feet is the studio? If there is room to add another bedroom than I would recommend adding another bedroom. By adding an additional bedroom you could easily raise the total rent. Make sure you have the reserves to add on. Hope this helps. 

You should weigh your options. Call up 10 property managers and 10 agents in the South Bend area and find out who provides the best service for STR. Based on the referrals you receive you can easily narrow down your options. Just because one person offers you a deal doesn't mean you should take it. It is the same principle for finding a real estate investment property. You are going to analyze 50-100 deals before you find the right one. The same rules apply for finding a top notch management service for your STR. Hope this helps.

These quotes are to high. I recommend building a Rehab Cost guide excel spreadsheet that will walk you through material prices. This will ensure that you have a relatively appropriate rehab budget. Try this, walk the property, and you'll find a lower rehab cost. Hope this helps. 

Dave, the listing agent explained to me that the property would not pass inspection because chip paint, insufficient windows, insulation problems, minor plumbing issues etc... After the showing I followed up with my lender and they basically said the same thing. I wished the lender would have informed me before on the issue. The seller wants to sell the property as is. The seller will not be responsible for any repairs pryer to closing. I will now be searching for property that is rent ready as is. What are some other issues with properties that could be flagged during a FHA inspection?

 Thank you Aaron for this information. I will defiantly reach out if I have any more questions. You are now in my contacts. Have a great day!