All Forum Posts by: Jake Thomas

@Michael Scott Welcome to BP! This site is full of great information. I am a local realtor and investor in GR. I would be more than happy to connect with you on any questions you may have regarding either flips or rentals. What kind of real estate have you been involved with for the last 4 years?

@Doug W. thanks for the kind words, the golf cart was a great investment. We drive it around town looking at properties we want to pursue in the future.  I just hope my CPA says I can use it as a write off :)

@Ben Leybovich What if I could afford to leave the money in the house that I already invested and not refi and still cash flow at $600-700+ per month? Rent should increase every year and the property will appreciate based on the area its in. I estimated my payments to be around $1,000/month based on the taxes and insurance I pay if I refi based on a $150K valuation at 70% LTV.

What would you do if you were me? 

@Cliff Harrison Thank you. The carpet no carpet for a rental was a topic of debate for 2 weeks. We got to a point where we can buy decent carpet and get it installed for under $1.30/sq ft compared to covering the whole house in Traffic Master allure at $3/ sq ft. (Installed by us). I can always change it between tenants if it doesn't work out.

Thanks again.

@Amine E. Thanks for the response. I have a few options here and I will see how this winter plays out before I decide fully which direction to go.

I throw the 50% and 2% rules out of the window when the property is under a mile from my house. If something breaks I have no problem driving the golf cart down and fixing it. Sometimes location is more important.

Thanks again!

@Shawn Maxey Are they parceled separately or two building on one lot? This makes a difference for financing in my experience.

I would also start by contacting a local bank for financing and get the process started. Most Realtors will want to see proof you can buy the property before they get to far into the process.

@Robert Guithues look on online at currently listed multi-family properties and see which agents and or brokerages have them listed most often. See if you can identify a pattern of a particular agent that lists several rental properties and contact them. They will understand what you are looking for and be better suited to helping you.  Usually Property Management companies are a good place to start as they specialize in rental properties.

Good luck!

@Shawn Maxey $2,000 for insurance? That seems high but maybe you are in a flood/hurricane zone? Those would cost me about $300-400 each where I live to insure.

Is the price $88K for both? Are they separate parcels? If not getting financing could be difficult as an appraiser would have to find comparable properties and I am guessing two separate duplex's on one lot are not very common (I could be wrong, again I live in MI).

Are 1 bedrooms easy to rent in your area? Do you anticipate a lot of vacancy's?

@Clayton P. I get 2-4 loans per year through this lender. I usually don't refi but the equity is really good on this one so its an option. 

The main roof was fine, the flat roof I had replaced was an addition to the house at some point. $1,100 for the flat roof. The $15K doesn't reflect my time spent but I don't know how to put a monetary value on my own time. I enjoy some aspects of the work, especially using the paint sprayer, I don't know why buts its fun. I will admit laying tile is time consuming and not as much fun but its all a learning experience. I figure one day when I can hire all the work out I will understand the scope of the work I am contracting and have a better understanding to what needs to happen and the costs involved.  

@Kevin Trumbull yes it was conventional 20% down. It was in fair shape just dated. 

@Linnea Minnema Property is located in Caledonia, MI right in the village. 

@Matt Leonard I don't buy based on the 50% rule. The numbers on this one make sense and its in my backyard. Rent will increase by $50-100 next year anyways. I may not even Refi it if I don't need the cash in the spring. 

Thanks everyone else!