All Forum Posts by: Jaron Walling

@Andrew B. Really great response! As a landlord you cannot wait for tenants. Staying diligent and proactive before they stop paying rent, cause property damage, or move out unexpectedly is really important. 

This question will not be answered without numbers. I would sit down with wife and hash out some numbers (purchase price, local rents, rehab costs) and see what's possible in your market. Some people above mentioned going the REFI route and taking the equity. That's a great plan unless you live in Boston (Jamaica Plains), like my friend, where he can't even buy utility shed.  

Good luck man! 

Adding to what @Brandon Reed said, 203k loans are not easy acquire. Even if you find a local bank that offers them, there's a bunch of hurdles they require and they only work with certain contractors. I would consider looking for hard money lenders, family, or HELOC if you have another property.

Good luck man! 

Location, Location, Location. That's all that matters because people won't pay a premium for property in bad locations. Networking with more REAs in your area may be helpful too.

You need three things: deal, money, or knowledge. If you have 1 or 2 of these the other will fall into place. Take money for example. How much equity do you have in your current home? How can you leverage it to purchase another property? What are the cap rates for your market? 

You made a point about "loving house hacking but my husband doesn't". I've seen people talk like this before. Something has to give so you can agree on the investment otherwise you're just wasting time.  

@Benjamin Seibert That's a lot more clear. Either way it showcases you need a good deal! If you over pay for the property the BRRRR strategy doesn't work because you end up with tons of cash "stuck" in the investment.

If you're planning to hold this property for the long haul I would listen to @JD Martin and go with vinyl or wood flooring. It may cost more install upfront but the durability wins, year after year, tenant after tenant.  

I'm a little skeptical on @Benjamin Seibert example unless you have a great deal and get massive equity from the gun. Don't see how you turn a $100k house into $167k with only $10,000 in renovation. I state that because the numbers are similar to my market. Knowing what a realistic ARV by comparing comps (sqft, rooms, location, date of sale) is VERY important.

Are you borrowing or is she gifting the cash from your mother? That can be a big red flag. It's very easy to make a friend your enemy when it comes to large amounts of money. I would run the numbers on the property to see if it cash flows. I don't see how you could lose money on the deal unless you pay for an inspection. 

ARV = After repair value?.. Sounds like you have a great off market opportunity if the numbers make since!

I would definitely research individual costs for rehab projects (floors, bathrooms, kitchen repair, etc.) You need an idea of cost per item; example how much is a bathroom vanity, or how much is a new garage door with installation? After that you'll have a capital cost figured out giving you a better offer price.