All Forum Posts by: Jake S.

Hey everyone,

I have a Condo complex under contract (18 of 24 existing units) that would give me 75% ownership of the current HOA. Eventually I would like to buy the other 6 units up, of which each are owned individually.

I have experience with Apartment complexes, but have never been in this type of scenario with 75% ownership of an existing HOA.

Can someone help explain this to me?

Thank you!

Hey Dave! Glad to hear your are back at it man.

2019 is good so far, in negotiations for an 87 unit deal.

Are you 1031'ing your 2 singles?

Hey! I think the main issue here is you should have paid 70-75% of the ARV value for the home minus repair costs/closing costs.

So the most you should have paid for the home is $48k MINUS the costs of closing and repairs.

So $10k in repairs (guessing)
$3.5k in closing

$48k-$13.5k = $34k purchase price

If you bought this for the purposes of BRRRR, than the above is closer to what you should have paid

You went wrong by not factoring in the repairs and closing costs into the equation

Hey Mark! Glad to hear everything turned out good and seems to be cash flowing well.

What are you looking for in your next deal?

Welcome to BP mike :D

@Bryan Mitchell I may be wrong, but I believe if the LOC is being used for business purposes, you can indeed write it off

Hey Curt!

That is definitely doable. I do that all the time.

Is there anyway you can go in within the first year, add value, and refinance to pull out your HELOC?

If not, use the surplus cash flow to pay down the HELOC as you go.

Hey John

It might be a bit more difficult to find tenants, but given that rental season is upcoming and kids will be out of school, youll have a few more families likely searching for a rental.

I think 5/2 rentals are harder to find, so in turn, you might get families with 3 kids contacting you quickly about it, especially in a B neighborhood!

Another plus is, they'll likely stay much longer than your standard renter.

Honestly not too sure, the thing is a tank though haha

Getting it inspected again today, very curious to what a new set up would be.

Thanks

@Justin F.

Hey Nick!

Is this a duplex? How confident are you, on the rental amounts?

I see you set aside 20% for repairs/capex, which is pretty high, but always good to over estimate on that stuff.

Does the property need work? How do you feel about the neighborhood?