All Forum Posts by: Jeremiah Dunakin

Quote from @John Morgan:

I've bought 5 houses by using 401k loans as down-payments. I've bought some houses with 0% interest for a year credit cards and a few with consumer lines of credit from banks. I use all the rental cash flow to pay these loans off asap, then repeat. I've also used a HELOC to buy a couple houses. And don't forget about tapping into equity if you have any. I bought 14 houses basically for free by harvesting the equity in my houses by doing 5 cash out refis. I use that cash to scale up and buy more cash flowing houses with zero $ out of pocket. That's how I've grown my portfolio of SFR without using hardly any of my own money.

 John I’m so glad to see others pursue this way. I have one single family rental now. I used 401k loan to get money for down payment and repairs. It is the best money I’ve ever spent. I can take two loans out and I am looking to do it again as my first loan is about paid for. I am paying original loan off two years early. Even if I do exact same thing I will have two houses instead of one to pay loan back. Again very nice to see others pursue this avenue 

First good job in addressing the issue. It’s not always easy to say you in debt. No shame in it.  Second I would do what I could to get rid of that credit card interest. See if you could apply for a zero percent balance transfer. There is usually a small fee like 3% but the amount you would save on interest would be more than enough to cover that one time transaction. Look at getting hyper focus on that credit card debt that is eating your money up big time on just interest. The 401k loan while it may stink at least you are probably paying yourself back(I think). Set a goal do your best to stick to goal, even if you fail keep going. 

Congratulations you are gonna do great keep up the hustle

I would say prioritize your life. Flipping channels on TV and Social media scrolling are thee absolute biggest time killers. People wake up and diddle around on phone instead of being proactive. Dont waste but redeem the time. My first rental was a gut  job on a 750 sq foot house. I was working 76-84 hours per week. I went in at 3am left at 3pm 7 days a week for years. At 3pm I went to rental property to drywall trim or whatever. It can be done. Gotta ask yourself how bad do u want it. Make a list of all the things that hinder you and set those weights down beside and take off. You can do it. 

Quote from @David Dobbs:

@Jeremiah Dunakin yeah but what does 'manage it' mean? Do you mean they need to do carry out the eviction themselves? that they over see an eviction? Are they also responsible for paying your mortgage from rent proceeds? etc. etc. ---- just a blanket catchall statement that they should 'manage it' is not quite right. Their management agreement should cover what they do and dont' manage, if it's not listed they probably don't manage it. But honestly it sounds like you are not willing or don't want to manage your properties but at the same time are also not willing to pay someone to manage it and I have news for you -- if you're not willing to do it or it's too much of a hassle or headache for you to do it ---- what makes you think they would do it for pennies on the dollar? 

You are making quite a few wild assumptions. I do not think it’s a hassle or a headache. Maybe an inconvenience once or twice a year. 

The very fact that you said that I’m not willing to do it is the most absurd unfounded thing I’ve ever read. You are just pulling statements out of the air to seemed enlightened. I remodeled complete rental myself. I lined up all contractors that was needed, as well as doing all doors flooring concrete trim painting cabinets etc myself.. I did this while working 80/84 hours every single week 12 hours a day 7 days a week. I take very good care of my rentals and treat them and tenants with the upmost respect. They are in great shape.

I run them like I run my house. When my air conditioning breaks at primary residence I do not pay someone to call someone for me. I look at AC and if I can’t fix it I call hvac. Same as refrigerator or ceiling fan. Do you pay someone to call an electrician at your primary house when your lights don’t work?

I have not had to deal with an eviction yet. When the time comes I will follow the local laws to do it. The process to start it is no harder for me than it would be to random Joe to start. I can google something just as easy as they can. 

If someone chooses to use a PM great. I just always get attacked when I say I think for local properties they are overrated for a smaller portfolio.people always say etc etc etc…… but can never actually tell me what that etc etc etc actually is. It’s like a politician saying they are gonna do this and that but never actually tell you how. 

Quote from @Tim Silvers:

Just got quoted $3500 for labor only for replacing the cast-iron pipes and replacing them with 40' ABS/PVC. Does that sound reasonable? Anyone know the cost of the pipes?

12 years ago I had 40’ of cast replaced to road with pvc. My yard was sandy. They had to dig a 12ft deep by 6 ft wide hole to replace. It was 6000$ then. Materials won’t be that much a couple hundred maybe. 

Quote from @John Morgan:

I self manage 29 and it’s easy. 10 are out of state. And I work full time. It saves me around 30k/year to self manage so it’s worth it. When something breaks, I text someone to go fix it. Pretty easy so far.

This is the thought I always have. I have one place 25 minutes away. I manage it. If there is a leak I look at it. I fix it or call a plumber. I always hear about how I need a property manager. I just can’t for the life of me understand why they should make as much money as me and I assume all the risk. If the tenant calls and says my door lock don’t work I deal with it nor I call a handyman. 

Hello. I am thinking about offering a friend a land contract. I have no idea how to do it or what to offer.He has a existing mortgage on it that is not very much

1.Can I take over his mortgage at his rates? If I can and house is worth way more than owned example(mortgage remaining is 30k house is worth 150k) could I take the 30k loan over and then pay the 120k on the side?

2. How do terms usually work? How much does someone usually put down 10%? And then what are usual terms as far as repayment? 
3. Who owns the title? 

If anyone has any experience with land contracts please feel free to add. I would like to offer but I also want to make sure we both are taken care of and everything is legit. My reasoni g for wanting a land contract is for a lower down payment, cutting out realtor, and hopefully saving some intrest. 

I don’t know if it matters or not but it’s a duplex

Quote from @Bob Stevens:

Quote from @Jeff S.:

Elderly woman in her 80's needs to remodel her 2 bathrooms. A representative from Kohler came out and gave a bid of 38k for new showers which does not include any other work like new flooring, vanity and toilet etc. The rep said only Kohler can install their products and they do nothing else which means she is on her own to find another contractor to finish the remodel. She likes the product and wants top of the line but not really good at negotiating with another contractor. Trying to stay at arms length (close to relative type deal) but want to watch over an elderly person. Any thought?

 38k for shower fixtures, this HAS to be a misprint , thats insane, 

We did this for about 10k, 

 I agree Bob, I’ve tore smaller bathrooms 5x8 down to studs and did rebuilt it for 6k in a week. A little elbow grease goes a long way. Bathrooms are mostly the same. Toilet tile sink and tub, with water lines. A faucet is a faucet just because one is over doesn’t mean you get charged more to install it. We use delta fixtures as they have warranty a couple times even when it wasn’t thier fault. People over pay for things and think cause they did they got better deal. Your bathroom looks great by the way

Quote from @Bob Stevens:

Quote from @Jeff S.:

Elderly woman in her 80's needs to remodel her 2 bathrooms. A representative from Kohler came out and gave a bid of 38k for new showers which does not include any other work like new flooring, vanity and toilet etc. The rep said only Kohler can install their products and they do nothing else which means she is on her own to find another contractor to finish the remodel. She likes the product and wants top of the line but not really good at negotiating with another contractor. Trying to stay at arms length (close to relative type deal) but want to watch over an elderly person. Any thought?

 38k for shower fixtures, this HAS to be a misprint , thats insane, 

We did this for about 10k, 

 I agree Bob, I’ve tore smaller bathrooms 5x8 down to studs and did rebuilt it for 6k in a week. A little elbow grease goes a long way. Bathrooms are mostly the same. Toilet tile sink and tub, with water lines. A faucet is a faucet just because one is over doesn’t mean you get charged more to install it. We use delta fixtures as they have warranty a couple times even when it wasn’t thier fault. People over pay for things and think cause they did they got better deal. Your bathroom looks great by the way