All Forum Posts by: Jacob Benninger

I am a bookkeeper, so I cannot speak for managing tenants or property, but I do automate a lot of the bookkeeping for my clients by using Quickbooks Online and a couple of it's related apps. 

By linking an account to QBO, Setting up a receipt bank account, payroll and enabling class tracking and setting up QB payments, even small to mid-size business can reduce their bookkeeping down to under an hour of upkeep per month. 

Hey Gang!

I had a very interesting conversation with my Father in Law the other day, that opened up an opportunity. I'll give you the back story and then ask my question.

Backstory:

I am a recent college grad with my first real adult job. I have my first few paychecks coming in and I still live at home with my family as I am getting established. I have no debt, my fiancé has no debt and we both are sitting on 8,000 is savings. I have decided to go the house hack route and that's how I've gotten into real estate. 

My Father in Law has owned two apartment buildings for many years. He is a mason by trade and is very knowledgable about construction and managing tenants. He has done very well for himself and is a great resource. I have picked his brain from time to time. 

Here is the situation: I am looking for a small multifamily and he is looking to downsize to an apartment closer to his daughters.

The Offer: He will help me find a property, help with the downpayment and then occupy one of the units for 1-2 years as a renter. Once his daughter is finished with school, he will move into another house. The idea being he will give his rental money to us instead of someone else. I get help with the financing and total control of the property, as well as help fixing the property up. 

The Question: would you do this? Do you see any downsides to investing with family? Does anyone have any experience they could share? 

Hey gang,

I am searching for my first property. I have talked with several landlords in my area and met a local real estate agent who has started sending me listings. I was very excited to look at them, but then became quickly overwhelmed. 

How do I interpret this information in a meaningful way? 

I see the price, number of units, and a lot more data about each property, but I feel like I am looking at another language. 

When you were first starting out, how did you go about learning to use this tool?

Thanks for the amazing feedback guys!

You have all hinted at the big question I have been asking myself all day. Should I sit at the sidelines for a few extra months before I have enough extra money to feel comfortable jumping in? 

I have no personal debt, school debt or payments of any kind and for the moment, I am able to live at home with my parents. It's given me a great 6 month runway to save like crazy, get settled in my new job and spend lots of time learning about real estate and talking with every landlord who will take my call. 

I feel perfectly happy to take advantage and wait a little longer, but the desire to jump in is there. 

@Scott Trench what was your first property purchase like? You mentioned no one paying rent on day one. Did it require a lot of work before you were able to get things up and running? 

Hey Gang,

I am looking through some numbers this afternoon and seeing what properties I could possibly afford. The average price of apartments, based on a quick scan of zillow, in Albany, ranged between 150,000-200,000. I can get a mortgage with 5% down at 3.25%. 

This translates to a down payment between $8,750-10,000. I currently have savings of $12,000. My question is reserves. Should I wait until I have more money before I go ahead and buy a property?

How much money do many of you consider a safe place to jump into a new rental? 

Hello Everyone,

I am working my way through my first property analysis and I could use some help.

It is a 4 unit apartment building in Scotia NY. I was able to look up the property taxes, calculate my mortgage and insurance and some of the monthly expenses. I got stuck trying to figure out utilities and other monthly bills. 

Where would you find this information?

Specifically, Water, heat, electric, garbage or any other bill of that nature? 

Also, what sources would you use to try and nail down a market rent for an area? I used a quick google search and found rentometer and cragslist. Is there any other source people use?

Thanks

-Jake

Hey Gang,

I've been diving into seriously learning my local market for about a week now and I have come up with a to do list about my local area. I would love some feedback to see if i am on the right track.

I am from the Schenectady NY area and would like to buy a small multifamily property in Scotia. It is close to where I work (I'm going to owner occupy), has housing prices in my range and is in my opinion, a nicer part of town with a great school district. Because of this, I would like to focus on this part of town and find a deal. 

I am going to:

-Find out the boundaries and block of territory I want to buy in.

-Drive every single street in the neighborhood and write down every multifamily property I can identify.

-Take that list and look up the owners, looking for people that own multiple properties. 

-Call them and ask to talk about their experiences in the area and what they rent their properties for and what utilities tenants usually pay.

-Nail down a close market rent for the area and get a better sense of the realistic expenses 

-Analyze 1 deal everyday until I get comfortable doing it.

-Talk with local lenders and see what rates and loan amounts I can get.

-Find the property and make an offer.

Here are my 2 questions:

Is there an easier way to find this information out or am I on the right track? I want to be able to boil this list down so that I can put it on a calendar and tackle it bit by bit, over a months time, until I get it completed. 

I have finally let my family know of my intentions and their initial reaction was to put me down and say that my goal was unrealistic for someone as young as I am and that rental properties are so much work that I will not be able to handle it. Any advice on how to handle the negative people when just starting out?

Thanks again guys. 

@Allen Fletcher Thank you for the very actionable steps and advice! I have spent so much time gathering theory by reading books and listening to podcasts, that it's time to actually start doing it. I am going to follow your advice and find a realtor and start narrowing down that type of property that will work for me. 

@Jon W. I will have to do some digging into the 203k loan. I wasn't aware that the FHA loan had that possibility.

Thanks again guys!

Hello everyone,

My question is related to a house hack situation. I am a recent college grad with the ability to qualify for my first mortgage and move into an apartment building. 

I don't have a lot of money out of pocket for remodeling a property, but can afford the downpayment and closing costs. Does this limit the kind of distressed property I can buy? How could someone in my situation find a property that needs some work and then fix it up? Is earning money from your job and then fixing it slowly a way to go? 

There are a lot of articles about using the BRRR strategy and finding hard money for the remodeling, but what if that is to advanced for someone starting out? How would a first time investor looking to buy a fixer upper multifamily, to live in, make it work?

Hello Everyone,

I am a local accounting student with a desire to learn more about buying and managing rental properties. 

I have some time on the evenings and weekends that I would be willing to use to help any local investor   with their business, in exchange for some knowledge. I can help look for deals, organize data, help with paper work or any other routine task that is part of managing property. 

If anyone is interested in working with me, send me a PM.

Thanks,

-Jake