All Forum Posts by: Jamie Nason

Hey all,

First post here. I just bought a Lake House in Maine this past summer. Got a very good off market deal and have quite a bit of equity ($250k+) in it. I bought under a secondary mortgage (don’t have a primary mortgage but 3 hours from where I live) and I put 10% down at 6.25%. It’s a nice place and I hope to rent it out weekly from time to time to help cover the mortgage ($1,850/mo w/ taxes, etc.)

I just found out from a personal conversation with the owner that a Lake House down the road will be going for sale and I was given the option to buy it off market. Haven’t discussed pricing yet but probably won’t get as great of a deal on this one but it is a beautiful log cabin with big windows and fireplace overlooking the water. Much nicer than the lake house I just bought. It will likely still be a great deal and I don’t want to pass this up. 

I was looking for advice on what to do to be able to afford both. Not sure how the STR is in the area yet, also have only had the current house for 4 months and still getting the property looking nice. Will likely have it for a year before the other deal would happen. I'm not sure if I can sell it and do a 1031 on it to avoid taxes, or would it be better to try and rent it out as much as possible and buy the other one too and try and rent them both out.…

Wife and I make around $200-225k/yr. Investing about 25% of our income in the market though. Don’t really want to stop that, but just looking for someone to coach or assist me through my options here so I make an informed decision! 

Wife and I would prefer the lake house we haven’t bought yet as it checks all the boxes, but might be worth having 2 properties right next to each other. 

Thanks for your time!

@Linda Thomas I don’t know if your going to get an answer on here. It is a personal decision. People from more liberal cities and areas are more likely going to lean with verbatim compliance and people from conservative areas are going to do the opposite. Personally I see the thin masks or neck sleeves everyone wears as pointless. Flu particles are much smaller than water droplets and when I can pour water through 90% of masks I see the false curtain of “safety” our government and the CDC are giving us. Sure they help a little bit at the end of the day do what makes you feel comfortable... mask/no mask vaccine/no vaccine.

Don’t hope for a concise answer from a diverse group.

@Peter Nikic why? If point of entry is $300k in your local area and you can find a solid realtor and PM for an OOS investor with a $50k entry... why should you “buy local” first. Many people have disproved that notion.

@Levi T. with the hard 💪

@Kevin Romines any reason you suggest SFH over MFH?

@Andy Pham did you hire a property manager and contractors through your realtor? What’s the PM’s % and what are you cash flowing if you don’t mind me asking? I am a numbers guy.

@Lynnette E. Thank you! Both your posts make sense.

Most don’t buy 50% off but they find something maybe 20% below market value that needs work and build in that extra 15-20% equity with repairs.

@Bill Brandt so how do all these BRRRs work on here where people get houses for almost 50% off then renovate to 70% ARW? This place needs some work. Maybe $15k to have a good renter. Even at $100k purchase price it wouldn’t turn a profit renting it.

This is why I have a hard time seeing all these successful BRRRR stories where people are finding houses 50-60% below market value because I see so many people saying that the banks won't let them go for more than 15-20% below market value.

I know people house hack and buy a house with a conventional mortgage and live in one side and rent out the other, but if I were to buy a duplex with a conventional mortgage, rent out one side, and move my stuff and mailing address there but rarely actually stay there... is that considered illegal?

So current situation... I am temporary living with my parents while my in-laws built a house for retirement. They are not moving in right away...I am taking care of it for them until they move retire so I don’t really have the option to leave.

Can I buy a MFH in need of rehab and sleep/work in this duplex a couple nights a week and rehab it for 12 months then rent it?

It already sounds shady writing it but I would like to know the actual laws.

I have no intention of doing it if it is not legal, which I am probably leaning toward it being either illegal or a gray area but any advice on the matter would be appreciated!

Could be a "good" way to get a low money down without having to find a steeply discounted place to BRRR

I just found a 1BR 1BA 650 SF Condo in my area that is a short sale for $100k. Did some digging and 2BR 1BA 850 SF units in the same place are selling for around $120-140k in the past year. HOA fees are $350 a month and include heat. Taxes are $1100 a year.

I found it on Zillow and it said accepting offers until March 1st. Still no offers.

I looked up the owner and he died in 2018 so I am assuming that the family didn't make payments any longer or something like that. The post did say that the seller may be responsible for back taxes and HOA fees. I also looked up his mortgage and it looks like he took it out for $95k in 2007. Don't know the terms or down payment or anything but safely assuming $70k left on it if he didn't refinance.

My question is:

I have cash and am crunching the numbers to see if it's worth it but if he owes $70k and they have it listed for $100k, what are the chances I can come in with a $65-70k cash offer contingent on them paying HOA back fees and inspection/contractor walk through?

This would be my first property I h e ever bought and not sure what to do. Do I write up an offer based on a template? I don't know if I want to BRRRR or flip yet but I do want some advice from others that have experience in this area.

Rents are $1000-1200 but it’s an up an coming area and my friend who is a PM says he lists a rental and has 60-100 inquiries on the first day.

Any help is appreciated.