All Forum Posts by: Jesse Hodges

I am about to go under contract with a local Credit Union in Alabama to purchase a foreclosure from them. The property will still be eligible for the Right of Redemption for another 6 months. My intent is to BRRRR the property so if the original owner comes back and wants to buy it back, my understanding is I will have to sell it at the current mortgage meaning I would lose any money I have put in for renovations. I am buying for 105K and with 35K, should be worth 200K. Is it worth pursuing and loosing any money invested for rehab? Any thoughts or advice are welcome.

What are your overall thoughts on homes with pools? Worth the extra hassle or not? If it’s worth it, do you make it the tenants’ responsibility to clean it or do you higher that out? How do you insure yourself to avoid liabilities.

I have a potential deal for an 8 unit apartment complex and I am having a hard time using the BP Rental Calculator since it seems to be geared more for SFH or small MF. Is there a BP tool for larger unit deals that can help me analyse if its a good deal or do I just need to be a bit more creative in how I input the numbers into the Rental Calc?

@Andrew Syrios

Thanks for the feedback. So say you form an LLC together, how do you split up the cash flow/profits? I know a lot of people do 50/50 but I guess I'm trying to figure out how people manage the actual mechanics of the partnership and the flow of money through it.

I have a family member that is interested in being involved with my real estate deals. However, while I was thinking more of him doing private lending for my deals, he is more interested in doing deals as partners. What are some good ways to structure deals for a partnership for buy and hold rentals or BRRRRs?

@Scott Dongjin Lee welcome to BP my friend, finally. 

A house I placed an offer on has a septics tank for sewage. What can I do as a landlord to make sure tenants don’t destroy it and can I hold them liable if they do?

@Jon Reed

That’s exactly what I’ve been thinking through recently. My plan was to buy and hold pretty much forever. But your right, if something changes and I needed to sell, I’d be in the same spot unless I dropped some serious cash to get it lifted. Thanks for the feedback!

@Jon Reed

Thanks for your thoughts. Part of me agrees with you and wants to walk a way but the other part of me knows that this is scaring others off too so there’s more potential for a good deal with less competition...

The lack of the wood infestation report is making it hard to get financing for it so that’s another hurdle to overcome both for me (and others) that I think I could maybe negotiate down the price.

The owner of a single family home I was going to place an offer for in Alabama is asking me to sign a hold harmless. It states because there is less then 18 inches to access underneath the house, an inspector will not be able to provide a wood infestation report and therefore the seller will not be held responsible for any wood damage in the house. Is this common/reasonable to sign? I feel like knowing if the house has termites is a big part of getting a home inspection and knowing if it has large underlying issues. Thoughts?