All Forum Posts by: Jason Hill

@Jon Kelly. My mistake, not very clear.  I bought the properties with the intent to do just that.  I’m just throwing out the idea of going full time since it is an option, although scary one.  I’m panning on getting another W2 and continuing my plan.  However.  I’m asking to see if anyone presents a compelling case for making the jump.

So far, consensus says: keep on keeping on finding a new job.

Yeah that's my thinking; that's why I'm 100% looking for a job.  However, if you don't look for opportunity, you'll never find it.   When in a situation like this your first instinct is to only look for a job.  I want to make sure I'm not missing something.

Let's call this a thought exercise for you, but real for me.

I'll try to be succinct and I completely understand that this is very much up to me.  Still, I'm interested in what the community has to say.

Had a six figure job that evaporated with COVID. Literally two months before I lost my job I purchased two properties with generous hard money I planned to BRRRR. I have one other LTR with dream tenants that cashflows about $180/mo. I have options for income which *may* just cover our expenses such as being an adjunct at a college, consulting, and renting my RV (it was profitable this year even with COVID). We have reserves, not as much as I would want but, enough that we're not desperate. Also, my wife and I have done over eight live in flips so we know well the material and time cost of renovations but, haven't hired many contractors since I'm very handy.

Ok, the deals:

Total cost: $70k (Again both houses, or you could say $35k each)

Renovation cost House 1: $30k (contractors)

Renovation cost House 2: $25k (contractors)

ARV House 1: $75k

ARV House 2: $120k

LTR: House 1 - $750/mo House 2 - $900/mo

One addendum is that these houses are in a very desirable up and coming rural area near state and hunting land.  Based on AirDNA and other sources my estimate is that House 2 could gross ~$1100/mo from AirBNB.  

My reality: I have a mortgage, $45k in debt, a toddler, and a wife with a part time job.

My dream: RE full time.

What would you do?

The reason you haven’t had replies is because when you say “zoning says X but I want to do Y” your immediately hitting on a very very local set of rules that only a real estate lawyer, not ANY lawyer, could help you navigate.  There well may be a way to “creativity” subdivide but it would require a very close look at your specific laws and ordinances by someone who knows what they’re looking for.

I know that’s not what you want to hear but, paying a lawyer $1000 to vet a strategy is better than paying a $30,000 fine.

I've been reading as many forum posts as humanly possible about mobile home investing as it is a huge market in my area.  With that said I think I've decided on a couple strategies but, want to make sure I'm not missing any gaping holes.

Strategy 1:

Purchase individual mobile homes on land not in parks, as there is a swath of these in my rural area, for cash.  I would then owner-finance the mobile home to a buyer using a MLO.  The buyer would then pay the note on the mobile home only and a also pay a lot fee.

Pros:

• I would own the land and therefore benefit from any appreciation.  - Appreciation is not the goal, it's gravy.
• I would receive lot rents for said land resulting in my cash flow.
• I would receive payments on the mobile home.  If they default: foreclose, repeat.
• The buyer pays their own utilities.

Cons:

• If the buyer is able to satisfy the mortgage on the home, then defaults on the lot rent I have only one real option.  Move the home.
• Without proper analysis, lot rent alone may not cover operating expenses and still provide sufficient cash flow.

Strategy 2:

Simply owner-finance the home and lot using a MLO. Pretty much the same as a SFH but, technically two separate titles.

Thoughts?  Which approach is best for cash-flow vs. long game?

Matthew - Awesome information I'll look into a service like that.

On the CRM integration it could relatively easily be done, good suggestion and I'll look into that.

I'm a small scale landlord but, I am constantly having to call a number of plumbers/electricians/handymans etc. because, "oh, I can't get to it til X".  I had an idea and was wondering if anyone else would be interested enough for me to pursue as a business opportunity.  

My day job is IT so I thought it would make my life easier to have all the plumbers, electricians, etc I use to be on a single number and when I call the number it gives me an option (press 1 for Electrician, 2 for Plumbers, etc)  Then it would dial all the plumbers and electricians that I use at one time.  Whoever, picks up first would get my business.  Would that be something that would be useful to anyone else?  I was thinking the professional could be charged for the call since they're the one making the money if I turn this into a business.

I appreciate your reply and you've said pretty much what every lender has said. I'm planning on living in this house for quite a while and at some point it will be paid for. I would love for my name to never be associated with it, however; it is what it is.

This may not be the correct forum but, you guys (and gals) have consistently amazed me on your knowledge of RE in general.

I'm purchasing a Freddie property for my personal residence. I am using the homepath mortgage option. I have been told that I cannot get a homepath owner occupancy mortgage with the deed titled to a trust.

Is that true? I would love to be able to purchase the property using homepath but, not have my name on the public records.

Great that answers my question.

We're not moving for work if that's what you're asking and it will not be over 250K.

I appreciate your time.