All Forum Posts by: Josh Engelhart

I have an upcoming rehab that needs siding, gutters, soffit repairs, floors, drywall, HVAC, a kitchen, and a bathroom.

Ideally I'm looking for someone to take on the whole project. I have subs and can piece it together if that's the best route.

Please reach out if you think you can help or know of someone who can.

It's in Columbus Ohio. They are all under rented right now but should go for around 1300 each. Mine is empty one is 1100, one is 1000, and the other lease is ending in a week so I can shoot for market rent.

We just finally got moved into our new 4-plex! It was a very bumpy transaction and our unit required a bit more reconditioning than initially expected, but we couldn't be happier. Combining FHA, a large seller credit, lender credit and tax pro-rations we were able to bring less than $6k to closing on a 380k purchase price. I wanted a good outlet to talk about the deal and bigger pockets was the obvious choice.

No matter what happens to the value it's going to cost you a lot to hold plus any repairs.

If the price goes up 200k who cares about the holding cost.

If the price goes down 200k because we are at the top of another bubble you will either have to keep paying for a long time or take a huge loss.

I hope and feel like the current price increases we are seeing are natural growth. A lot of people say we are heading for a correction. Either way I'd prefer to be in something that cash flows.

The best way to start is with an owner occupied multi family. Obviously you have to live there, but it's one of the least expensive ways to get in and it spreads your risk over more doors.

Single family is great too, but something you might want to incorporate after you have gotten started.

Any asset class can be great if you are buying below market value with an opportunity to cash flow. Any asset class can be terrible if you pay too much or have to hold while your expenses are greater than your income.

Too late on this one. You have to have it set up ahead of time at closing so that all of the proceeds sit in the bank account of a qualified intermediary until you close on the new purchase. It has to go towards a new purchase as well and can't be used to pay down another debt.

Ideally figure out the financing first. It will be a lot easier to know what you can do and get an accepted offer if you have a prequalification/ preapproval letter.

I wouldn't pay off any of them. Those are all good rates and terms. If you are ever going to borrow money later it will likely be at worse terms than the three loans you outlined above.I would invest any money you were planning on using to pay these debts downs on opportunities that pay greater than 5.49% returns. The higher the better.

If you you are just going to accumulate it in a low interest bearing account I would go solar, car, house.

Check your local laws, but I don't see how you could be required to tell them.

An egging wouldn't be something I'm required to disclose where I would live. I've seen  reference to prior fire damage, violent crime, warnings about lead paint, etc.

If it helps you sleep at night or you feel some type of personal obligation you can warn them.

I would just wash off the eggs. If it got egged again I might set up cameras or contact the police.

The 50% rule isn't exact but will likely be your average over time. That appreciation is great, it sounds like that investment is performing very well right now and will likely continue to do so.

Some things I don't see listed in your example are vacancy and capex for the big expenditures. Vacancy is more of a reduction an income than an expense. If you can pre-lease it or have a 3 day turnaround this will never come up. You'll also probably need to make a number of small repairs between tenants. There will be other large ticket issues that pop up as well as big things that will eventually need replaced like the roof, furnace, plumbing issues, etc.

If you have enough properties for enough time the below or worse will eventually happen and repeat itself. You will also hopefully have plenty of mild years with almost nothing happening.

One year you may have a $10,350 new roof expense (or other major repair), full month of vacancy ($4,050), and $3,000 of minor repairs to get it rent ready wiping out your $250 per month repair budget. This would leave you at $0 profit. Any other potential expense or longer vacancy would push it negative.

You are fortunate to have not had any large expenses yet and I hope that lasts as long as possible for you.