All Forum Posts by: Jonathan Pavkov

@Ivy Liu you should be able to find those types of deals in any big Midwestern city (Kansas City, Indianapolis, Columbus, Cincinnati, etc). You could also look at Turnkey rental providers in the Midwest, but you’ll likely pay a slight premium in purchase price 

Hey Everyone,

I've been a Pro-member for a year now and just obtained my Massachusetts real estate license. So finally, I have built the confidence to ask a question. (A pretty long one)

My previous landlord passed away and left the property to his wife. They live out of state and allow my father and I to manage the property in their absence. For some time now I've been planning to reach out to them about purchasing the property, but just don't know what to say. She recently transferred the property to a relative of hers through a quitclaim deed and this has happened twice in the last 7 years. I have the new owners address and number, but what should I ask him or tell him? I really would like this to be my first property because I can obtain an FHA loan as I already stay in one of the units. By purchasing this property we would be making things easier for him as we already take care of the property and he lives out of state.

Should I write him a letter or should I first check to see if I can afford the home? Please advise if possible. 

This property is not on the market. 

Good afternoon BP,

I am seeking some advise to get started in BRRRR investing. I am hoping someone can offer some advise on how to approach my first deal, and hopefully subsequent deals, financially, using the scenario below as a starting point. I have read several of the BP books as well as a few others. I have met with a CPA and am working on building some portfolio of vendors and contractors that I have used/will use on any projects in my area.

- 80k cash saved
- Great credit
- Great Job in Commercial RE and Construction with low DTI
- Already own a Primary residence but in my wife's name

Looking at BRRRR properties for less than 150k to start.

Any input you could provide on what sort of financing I should look for (loan types), how much to reserve for rehab costs, and how much I should put down of my own cash.  Is there a sweet spot using these stats understanding rehab can be a big variable.

I appreciate any thoughts you could provide to get me moving in the correct direction. I'm anxious to start vetting properties but keep getting stuck on how to structure the money to get the best (maybe fastest) turn on my investment.

@Joe Splitrock Correct on our current net worth part, but fortunately we have no debt other than our primary mortgage. The LLC isn't for the house hack, but for our second house we have under contract that is going to be 100% rental. We also have a pretty high income which is why I am focusing on the liability side so much. I do work in commercial insurance so I admit I do tend to overthink the liability side of things. If it turns out we can't get an insurance carrier willing to write the policy if the property is held in an LLC, we will just make sure we get an umbrella policy with high limits to cover us. I will discuss with our insurance agent to make sure it would sit over our homeowners, landlord, auto policies, etc.

@Jonathan Pavkov I have made my lender aware that we plan to transfer to an LLC after closing and they said it wouldn't be an issue, they just don't have anything in the actual wording that says its okay. I was thinking the best move is to just get through closing being as clear with our intentions as possible and then worst case we have to refinance later if any issues come up. We anticipate being long term holders so if immediate cash flow gets cut down we are okay with that since we are in it for the long game.

Thank you both for your advice. 

Welcome Spencer! I'd reach out to the guys at Reafco.

Hello Friends

I’m looking for a great CPA how can help us navigate through the investment journey. Please let me know if you have any recommendations. 

Hello!  I have a home in the Denver area and am looking at options to purchase a second with hopes of making this one an investment property. I don't love my current mortgage broker so I am looking for rec's on investment specific Mortgage Brokers as well as types of mortgages that I should look into for this type of purchase!  Thanks in Advance!