All Forum Posts by: Jordan Thibodeau

Aggregate cash flow( first month - current) / Cash invested (down payment ,closing costs + equity build up).

You could add appreciation but it would be tricky at times, that's best used when you sell.

Fisbo...use escrow company for clearing payments. Added liability if due diligence is improperly done.

He could refinance the house to cash out the other family members and take title and assume the liability of the note.

Consult an accountant...but assuming the house is in a trust if the estate is smaller than 5 mil...he shouldn't face any inheritance tax issues.

REI groups, rentometer, zillow, and agents.

Looks good so far. I would do a walk through and talk to the tenants to see what they think of the place.

I would ask the selling agent what the owners motivations are. When I bought my duplex in December, the owner wanted to move out of the state to retire so he was motivated to unload the property.

I would say that middle to lower tier areas typically cash flow higher due to the suppressed valuations due to the negative stigmatism.

Typically sfhs appreciate faster than duplexes due to the diverse reason involved in sfh purchases ( finding the perfect school, cuteness factor, commutes etc). While people who buy duplexes are typically investors who only focus on NOI.

Congrats on the first purchase. Are you confident you can find 3 quality tenants for your new property while working full time? Also, do you have any vacation time that you could use in case you needed to spend time at the property?

As far as cash out refi, you uusually have to wait 6 months before doing so.

Hi Ryan welcome to bp.

Are you including a repair budget in your estimates and a vacancy rate? BC scenario 1 doesn't leave you with much wiggle room, you barely break even and not to mention you're sinking 20k into this house; i would pass and do for an index fund. Don't forget the value of your time...you want to be working hard on this property while earning a $1 an hour doing so ( if you would like to do that, I can pay $2 an hour to work on my property :p).

Scenario two: same concerns as mentioned but I would contact a local real estate attorney to see if this feasible. Worst case scenario it isn't, and you pay an attorney fee but save yourself the pain of a tax surprise. If it is possible to make this happen, and without knowing utilities and other expenses..I see some daylight in the deal.

Walk...too many moving parts. Finding tenants for a rental is one thing...dealing with commercial leases and trying to run a business while you're levered to the hilt seems like too much work.

Hmm. Based on the 70% rule and deducting rehab and carrying costs the purchase price should be around 318,500. But being that you're a fellow bay native, we both know unless you're buying a shopping cart that ain't happening. If you're confident with your Arv, contractor, and your Realtors ability to sell, go for it.

I would say walk. You have a lot of leases expiring and youre inheriting tenants you havent screened. It seems like you have too much uncertainty about the deal and I would continue researching other deals, plus this deal is out of state so I don't know if you're going to be able to personally manage it.