All Forum Posts by: Jake Miller

 That is good to know!

Thanks so much! All my questions were answered in knowing that lenders are okay with it being a STR but they don't use all the income, just a projection of maybe half to cover a mortgage. You can do 10% down and they can't be in the same area.

Hey!

I know that you are able to purchase a home as a "second home" using 10% down but was looking for some answers to some more questions in that area.  If you put 10% down it isn't allowed to be a rental but I would imagine you can use it as an Airbnb?  But is that something that you can be upfront about when purchasing the house or if you try to get another property in a different location using that same strategy that would come up on on tax information and was curious how that works.

Seems like a great low down way into the vacation rental market but was curious how that worked. Thanks!

The maintenance comes and goes but it honestly isn't that much. 

You are right, the whole concept of selling this and going backwards just so I can do something different with that money.

I think as I thought more trying to use a HELOC or something to pull some of that cash out and use that would be the best because I am looking for passive income.

 As the title reads I am need of advice for my next step. I currently am house hacking a quadruplex and have been in the unit for almost 2 years. I will be moving out and buying a personal residence in the fall and don't know what to do with the quadruplex.

I bought my quad for 325,000 (about 309k remains on the loan) with an FHA loan at 3.75% interest and 3.5% down. Similar properties in the area have sold for 450k-480k. About a month after I bought mine a quad two doors down sold for 400k.

The quad doesn't do bad financially. Mortgage + water/sewer/trash comes out to about $2450 a month and I bring in $3250 with rents and me living in a unit. When I move out it should be $4000 a month. It is also in a gentrifying neighborhood and I just spent the past 2 years replacing two AC units, 3 floors, 2 counter tops, 1 roof, adding plumbing clean outs and windows for two of the units.

I was looking to refinance but because it is a multi family and me only putting down 3.5%, I could maybe get 10k out of it. I then thought that I would sell the property because I could avoid capital gains tax and I own one real estate property out of state and love not having to manage it. But I recently found out that the tax exemption would only apply to 25% of the gain. My hope was to be able to take the money from the sale and put that into either BRRRR deals or maybe a larger complex, like an 8-10 unit.

Today I was looking into HELOCs and don't know much about them but they seem like a viable option as a way to not sell my property and begin to BRRRR and easily cover the cost of interest.

I've currently been buying one property a year but it could take me 3-4 years to save enough to BRRRR using my own cash and want to go quicker than that. All opinions and thoughts on what would be the best choice are helpful and appreciated!

Thanks!

Hey!

I'm currently in Phoenix and am house hacking a quad right now. The market here is getting out of hand and so I'm beginning to look elsewhere for my second property. I have an older brother who lives in Kansas City and figured I'd check out that market. I've looked at a few forum posts already about the area and begun doing research and it looks like the area has become a hot spot for solid cash flow.

This will be my first attempt at investing out of state. My preference is duplex to quads but I guess I could be open to turn key. I was looking for someone who is in Kansas City and looking to partner as I get comfortable with the idea of long distance investing or some recommendations on agents, lenders, and property management companies that I could begin to talk to and develop relationships with there.

Any information is happily accepted, Thanks!

I have an A/C unit in a quad that will blow cold air for about an hour and then overheat. I've had two people come out to look at it and say I needed to replaced it as it was a refurbished unit when it was installed when I bought  the property last October. I tried to have the home warranty people come out at the recommendation of my realtor and as expected it cost me $60 and they can't do anything until it is broken and will just put bandaids on until it is completely broken.

As he was leaving though he stated he knows a guy that can give me a used a/c unit if I needed. Obviously this situation alone should scare me off of that but it'd be 41% cheaper than buying new. I'm wondering what peoples experiences or recommendations are? I know I should go new but that would essentially knock out all the money I had made since owning it and was hoping to start using it on cosmetic repairs.

Thanks for any insight or advice!

@Corey G.. Hey! I'm also in the Phoenix area and was just about to go through the same decision. I'm curious what you ended up doing and how much it cost? thanks!

I'm looking to hire a handyman to do some work around my 4 unit. As I am looking around I am seeing that some stating 'Not a Licensed Contractor'. This may be a dumb question but I assume I would want someone with a license just for some liability sake. 

Also, any recommendations for the Phoenix area?

Thank you all for the input! I definitely felt that I had given them enough notice but was wondering where the fine line between being firm and understanding is. I also was the one that emailed them checking in to see how the move out process was going and that is when they told me. I will let them know that they can not stay and the eviction process will begin on February 1st.