All Forum Posts by: James Allen

No way I would make this deal. Run. 

I really considered doing just that!! I can’t express how irritating that argument became. 

Thank you, Eric. I'll take a look. 

Thank you so much for your reply. I definitely want to be compliant. I felt like I was correct about the expense falling on the tenant. I shall proceed by allowing the wheel chair ramp at the expense of the tenant. 

Yesterday I received a call from my Property Manager. He stated that DSS had called and said he was required to build a wheelchair ramp for one of the tenants. This is still a POH. I told my property manager that the ramp can be built, but the tenant must pay for it. My property manager is arguing that I must pay for this because of ADA. This is in N.C. The tenant has lived here for over two years.

Does anyone have the correct answer? 

Chris, it's going to be very difficult to house hack with the VA disability payments alone. Some will take your untaxed and multiply it by 1.25, or some similar number, to give you an estimated taxable income. However, at that rate, you are still going to have a very difficult time finding funding for a 600k plus multifamily.

Another thing to consider is that VA lenders will often not lend on the 2-4 family homes that allow you to house hack. 

My recommendation is to rent and put some more money away for a down payment. Find yourself an out of state multifamily to brrrr and then rinse and repeat until you have yourself in a better position to take on the VA loan. Maybe even do a few flips to get some more cash in your pocket.

Purchased 50-unit mobile home park for $150,000 in probate. Put another $60,000 in repairs to bring the units up to livable conditions. Refinanced the park at $725,000. The park is at 90% occupancy and have been working towards moving to tenant owned. Estimated current value is $1,500,000.00.

     Derek literally had no money out of his own pocket and set himself up to receive positive cash flow from day one. This, plus a nice pay day within two years, if his tenants decide to take his option. Also, he immediately has access to the $34,000 in option 1 for another deal. The analysis is missing the key exponential effect of his deal. If he decides to use $34,000 at 25% on another deal of $136,000, he is now covering the losses mentioned earlier, plus receiving the additional funds. 

My undergraduate is in Computer Science, Master's in Information System's, and had about three years towards a Doctorate that I decided to stop working on along the way. It's definitely helped me to be a good employee, but the only education that has helped me with investing has been reading tons of books, following the forums, and just trying to make deals.

Looking back, I wish I had spent 200k on Real Estate versus education. 

Thank you, Nathan.