All Forum Posts by: Jason Munger

It's always interesting to see the licensed realtors respond to "wholesaling" questions.  Take that with a grain of salt.  In general...they don't like it because they aren't getting a cut of the action.  It's like asking a taxi driver what they think about uber.  While they may have some valid points, confirm with your own research.

@Kerry Baird to add to the confusion a little, the owner property I want to use is in FL and the property I want to buy is in MI. Lol

@Jack B.

How? He didn’t lock the door. He is in the home his lease gives him the legal right to occupy. Being naked in your home isn’t illegal.

You would have a REAL hard time making a case with that.

Pun intended?

Looking for a lender that offers HELOCs on an investment property.

We have an investment property that we own outright. Approx $180k value. We’ve owned it for 14 years with stable rental history the entire time.

Looking for $110k to purchase and renovate the next property.

Open to other options as well if you have other ideas.

Forgot to mention this point... ^^^^

Two things.  

If it is a desirable area (like next to the beach or Disneyworld or whatever) this can be a great opportunity if you have the financial means to pay cash and you are looking for a short term rental property.  First check that they allow short term rental!  The rental doesn't care if the property isn't owner occupied

Also, there is a difference between "non-owner occupied investor property" and simply "non owner occupied second home".  So look into that.  I've toured properties before in the off season and they looked like ghost towns - although well maintained.  I thought they may all be investment properties, but they were mostly used as weekend getaways/vacation homes, not rentals.

People will caution you about condos because of the HOA and uncertainty or future assessments. While you have to be aware of this and financially plan for them, there are several "pros" that balance out these "cons".

First lets start with the "con" of an HOA

Usually this fee will include things like lawncare, water, trash, cable and insurance of the structure. If you add up all those expenses that you would otherwise have with a home, the HOA fee usually isn't all that bad.

Second, unexpected assessments...sure they can happen.  But a tree can fall through the roof of your house too.  An AC can fail, foundation can crack, driveway needs repaired, etc.

The "pros"...

Comps are usually pretty easy to get because there are several identical units (sqft and layout) to compare to.  

The property is managed and owners must follow certain rules so you know the neighbor isn't going to install an above ground pool and start a muffler repair shop in their front yard

You generally only have to insure the "paint in" or the "drywall in", so other than your contents, you don't have to carry a large $$$$ policy. Of course you are paying for it in the HOA

They are quicker to flip because you only have to worry about the stuff on the interior.  You aren't fixing driveways, roofs, structures, landscaping, etc...

Will be faced with a similar situation soon.  I'm doing a rehab job on a 3,000 sqft house from 1930's that has been used for student housing.  MANY, MANY repairs on the walls from over the years.

I will keep this as a rental, so I'm making my decision based on what is best for the long term, not just short term profit margin.

I'm leaning toward tearing down the drywall so that I can redo the insulation.  I'm assuming it is decades old.  So this should help with the insulation of the home (less wear on furnace, lower heating/cooling bills).  But this will also let me inspect the wiring, run more outlets where needed and make the walls look nicer.  They probably have a dozen layers of paint!  haha

They own the home free and clear.

Home is vacant, 100% equity and needs a LOT of work

I'm looking to house hack and live in the home while I fix it up.  Then 1-2 years down the road put it up for sale.  Ideally I would like to sell it back to the current owner (long story, they can't afford the rehab themselves).

What would be some best ways to structure this deal?

Ballpark numbers, just so the conversation is easier.

Current value: $75k
Repair costs: $125k
ARV: $300k

*I would do a lot of the work myself

I want to be the "home owner" throughout the project for the various reasons, including have financial security that I'm not dumping a ton of $$$ into someone else's home.  Plus there is no guarantee that they will be able to (or want to) purchase the home when I'm done.  Also, I could claim homestead on it and change the insurance policy to owner occupied/primary residence and save a lot of money there.

On the flip side, that requires two closings and also risks losing some grace on current building codes that the home is currently "grandfathered" for.  OLD home.

This is part of my "struggle". I want to be able to use the condo for my family occasionally, which is one point in favor of STR. But I like the consistency of the LTR cash flow. They aren't completely hands off, but much more so than STR.

I have another property in the area so I'm pretty familiar with the rental market there...just trying to decide what I want to do with this unit.

Thanks for the input BP family!