All Forum Posts by: Jack Wyatt

If I rent out rooms in my house do you count shared space when filing taxes or would it only be the rooms they rent?

In David Greene's BRRRR book recommended by BP he suggests buying the first property and rehab cost with cash. Is this the only way to get started?

@MarieChele Porter I own a rooming house in Memphis Tennessee that helps individuals trying to reestablish their lives. I have had nothing but a good experience so far. My situation is a little different though. One, I have experience working with this population. Two, these guys pay by the week and have no contracts so if they mess up I just put them out. I don’t know if there’s someway you can admin your contract to say any sign of trouble or delinquent payments (because of your past) you have to go. Also, like other have said check plenty of references and with his employer. My guys always pay on time because they know they don’t have many other options. As you can see from this thread most people are not very friendly towards this population. 10 years ago I was homeless living on the streets and ended up in jail myself. Today I am in charge of the alcohol and drug prevention efforts of Memphis Tennessee, I’m a researcher for Columbia University for the opioid crisis, and I am now a real estate investor. I received 2 degrees from the University of Memphis and was the commencement speaker for my graduation. People do change and deserve a second chance. After everything I have read from you...I’d say give him a try. Feel free to call me if you want to talk more about the situation. The more details I know the more I could help you feel out the situation. (901)417-1982

@Will Fraser thanks Will! So you went to two different schools essentially?

Can someone please tell me what are some of the best (accredited) online real estate schools?

@AJ H. I just want to make as few bad decisions as possible on my REI journey! This year I would like to buy another rooming house and a four plex. Long term I think I just want to focus on multi family.

I started with Rich Dad Poor Dad. Second, I took the beginner course on BP. Third, I read Brandon Turners The Book on Investing in Real Estate w/ Little or No Money Down. Fourth, I read The Book on Tax Strategies by Amanda Han. What should I read next? 

Investment Info:

Other buy & hold investment.

Purchase price: $120,000
Cash invested: $120,000

This property is a rooming house. 13 bed 7 bath. I am turning the laundry room into another bedroom and adding a 1-bed room with 1 bath in the basement. It will be a 15-bed room 8 bath when finished. When covid passes it will have the potential to cash flow really well. I paid cash for it and now I am going to do a refinance to buy a second rooming house. I have a waiting list of about 20 people at all times. I treat my tenants well and in return, they stay and pay on time.

What made you interested in investing in this type of deal?

This deal just kind of fell into my lap because I was doing things for my community and the owners wanted to see me be able to help more people.

How did you find this deal and how did you negotiate it?

The previous owners are friends/ work colleagues.

How did you finance this deal?

Cash.

How did you add value to the deal?

This house is for individuals wanting to get off of drugs and alcohol. I promised the original owners that I would continue to help people with the property.

What was the outcome?

I got the house for a really good deal. They sold it to me for the same price that they bought it in 2007.

Lessons learned? Challenges?

Closing the deal was stressful because financing fell through 2 days before closing and had to raise the cash but now I'm not scared of the closing process anymore for the most part. Just trying to learn all I can about different ways to put together future deals.

Also, I find that having a house meeting once a week gives them an opportunity to voice concerns and makes it easier to manage. I also have a community cookout once a month. This helps me to get to know my tenants better.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Both parties only had lawyers present.

Investment Info:

Other buy & hold investment.

Purchase price: $120,000
Cash invested: $120,000

This property is a rooming house. 13 bed 7 bath. I am turning the laundry room into another bedroom and adding a 1-bed room with 1 bath in the basement. It will be a 15-bed room 8 bath when finished. When covid passes it will have the potential to cash flow really well. I paid cash for it and now I am going to do a refinance to buy a second rooming house. I have a waiting list of about 20 people at all times. I treat my tenants well and in return, they stay and pay on time.

What made you interested in investing in this type of deal?

This deal just kind of fell into my lap because I was doing things for my community and the owners wanted to see me be able to help more people.

How did you find this deal and how did you negotiate it?

The previous owners are friends/ work colleagues.

How did you finance this deal?

Cash.

How did you add value to the deal?

This house is for individuals wanting to get off of drugs and alcohol. I promised the original owners that I would continue to help people with the property.

What was the outcome?

I got the house for a really good deal. They sold it to me for the same price that they bought it in 2007.

Lessons learned? Challenges?

Closing the deal was stressful because financing fell through 2 days before closing and had to raise the cash. The good news is...I'm not scared of the closing process anymore for the most part. Just trying to learn all I can about different ways to put together future deals.

Also, I find that having a house meeting once a month gives them an opportunity to voice concerns and makes it easier to manage I also have a community cook out once a month. This helps me to get to know my tenants better

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Both parties only had lawyers present.

Investment Info:

Other buy & hold investment.

Purchase price: $120,000
Cash invested: $120,000

This property is a rooming house. 13 bed 7 bath. I am turning the laundry room into another bedroom and adding a 1-bed room with 1 bath in the basement. It will be a 15-bed room 8 bath when finished. When covid passes it will have the potential to cash flow really well. I paid cash for it and now I am going to do a refinance to buy a second rooming house. I have a waiting list of about 20 people at all times. I treat my tenants well and in return, they stay and pay on time.

What made you interested in investing in this type of deal?

This deal just kind of fell into my lap because I was doing things for my community and the owners wanted to see me be able to help more people.

How did you find this deal and how did you negotiate it?

The previous owners are friends/ work colleagues.

How did you finance this deal?

Cash.

How did you add value to the deal?

This house is for individuals wanting to get off of drugs and alcohol. I promised the original owners that I would continue to help people with the property.

What was the outcome?

I got the house for a really good deal. They sold it to me for the same price that they bought it in 2007.

Lessons learned? Challenges?

Closing the deal was stressful because financing fell through 2 days before closing and had to raise the cash. The good news is...I'm not scared of the closing process anymore for the most part. Just trying to learn all I can about different ways to put together future deals.

Also, I find that having a house meeting once a month gives them an opportunity to voice concerns and makes it easier to manage I also have a community cook out once a month. This helps me to get to know my tenants better

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Both parties only had lawyers present.