All Forum Posts by: Karl Denton

Samuel,

I have never went down this path however it sounds like you may have some capital if your thinking of this route. Either way in my opinion you would have to gauge your market to see if Duplexes are the way to go or a mobile home park. Usually iv seen the mobile home parks work out extremely well, they require less capital and can have equal returns to a duplex if you building from scratch. Good Luck, would love to know what you decide to do!

Karl Denton

Fred,  

Your math is correct at 2.98%, however thats really just a good tool to quickly look if it could work out. This has the potential to work out, now using the quick 50% rule you'll take half of that for monthly expenses but NOT the mortgage. Taxes and insurance are included in that 50% rule, so that gives you $6203.50. Next you'll want to subtract your monthly mortgage out of that. So far its looking good, your biggest factor is CAPEX. If its not move in ready you'll need to maybe account for RENO costs. After that you'll have to do a evaluation on the age of everything from appliances to the roof to paint. Usually 8-15% could account for CAPEX monthly.

Seems from the number side of things this could work, not knowing what condition this is in. If its move in ready it seems like a deal you may want to get involved in. Use the bigger pockets calculator to run more numbers.

Always a lot of factors for sure, there's a article on how a 40k house that seemed like a great deal at the time never made any money due to constant repairs. 

Good Luck on your deal, reach out if you have any other questions!

Karl Denton

Have you seen the ones here on Bigger Pockets? I basically used that as a sample lease and changed it to make it mine. I then emailed it over to my lawyer and he made some changes and now that's my go to lease for my properties. 

Karl Denton

I would start looking at attending some real estate meetups, you can talk to people there who are wholesalers and get on a call list. Its very competitive, but you can also try driving for dollars app where you send out mailers to homes you would like to flip that may be distressed. Good Luck!

I had a friend have a issue where he wanted a professional opinion for peace of mind, he had called this company Torello Engineers they are out of Essex, CT. Worth a phone call and conversation with them. My friend was on a hill on ledge and his addition had been pulling off his home since the purchase of it. Heard good things about them,professional, organized, and responsive. Good Luck! 

I believe it is about 75-80% but I would use local banks, they will be able to give you the better rate and term/LTV %. I'm in CT and I find Liberty Bank has been great. Check credit unions as well.

Hello Walter, 
 
There's so many ways you can go about this and feel free to message me. But what I got is your goal is to purchase both of these houses, not sure if your parents will still live there after the purchase or what the plan was there. The value, is that the appraisal or what your parents want for them? The one your going to move into has a remaining loan of 160k and the other is paid off? SO, you want to buy both of these and then cash out refi on both to then have capital to purchase a 4-plex? 

Your strategy depends on what your parents are looking for in the sale. I'm going through something similar currently. You can use hard money to buy the property cash, they get a big check and then you refinance and get a mortgage without using your own money, which then hopefully the rent covers your payment. You could also take over the payments and do a subject to loan. You could also put 25% down and do a conventional investment loan.   Many things you can do, need more insight to lead you down the right tracks. 

Feel Free to reach out if you like. 

My opinion would be if you want your real estate license, then great go for it. However if you simply want to get involved in real estate then your best bet may be if you need a place to live as well or want to get into real estate cheaper, then house hack a multifamily. You can live in one unit for a year, have less of a down payment and then after a year move on to the next deal or get into your single families. However just getting your first multifamily what would be your plan? BRRR Method? Investment loan(%25 down)?

Need a little more info on where you want real estate to take you really. Hope this helps. 

Hey Alex, 
       
For your heating situation I would immediately separate the hot water to a separate hybrid Rheem Hot water tank 50 gal. They are $1700 with a $750 rebate back making them $950 out the door before any other discounts. Costs to run this unit is about $105 in electric per year, so cheap. Now you can have those tenants just pay there oil for there heat they use respectively. (If you separate the panels you could get 2 smaller water heaters but iv run numbers and its just cheaper to setup a 3rd meter as a owners panel and you can pay for the water heater, However if there's really no need for a owners panel for common lighting and such then get 2 small cheap water heaters and they can pay the electric bill.) 

For the separate panels that's easy but will have costs up front, get an electrician out there, the electric company can run another set of lines to your house and then you would need the electrician to install another separate meter and spilt the panel to that meter for unit 2. 

I use Wilcox and Reynolds out of Mansfield, CT Kathy over there has been great and theres another gentlemen that deals with my commercial insurances. Best pricing iv found and service with any issues or just running numbers. Another great broker is Brooks, Todd & McNeil Agenecy Est. 1839 when you call talk to Noah Plen and tell him Karl Denton sent you, he will make sure you are taken care of. If he cant offer the best he is honest and will let you know. Brooks Todd McNeil Insurance.