All Forum Posts by: Justin Willmon

Hey guys, Thanks for the replies. So had some crazy stuff come up and actually rented my home out. I had some friends that their home burnt to the ground about a day after posting this. Insurance was going to put them in a hotel, so I offered to let them have my house as they have a whole family including a 6 month old, and i couldn't imagine living in a hotel and raising kids. 

They ended up liking the house, and asked if I would consider renting it to them. Long story short, insurance agreed to pay me to rent it as they sort out the whole fire situation, and get a new house rebuilt. We agreed on $2500 a month, and I left my furnishings, which wasn't much other then a couch and some beds and a couple tvs, and i cover the electricity bill. So in all i ended up more then i thought for the house, they got a fully furnished house out of the deal, and insurance was happy with the price. So now just living back with my parents and saving up trying to purchase another home in the future! 

Thanks for that reply! That was my next question is how to properly vet potential tenants. I posted it up last night, and have 2 people already wanting to meet and talk about renting it. I will look into Smart move. 

and that’s what I’m not sure about and trying to figure out. I guess I worded it wrong in the beginning, but my $975 a month includes my taxes and on the home and then insurance runs me about $120 a month. Utilities would be paid for by renter. So essentially I’m in the home for $1,095 a month correct? 

I know eventually maintenance will be required, but I finished last October updating the whole house. Replaced all cast iron plumbing with PVC, new water heater, etc. and of course updated cosmetics as well.  so hopefully nothing major in the foreseeable future. 

So if I’m looking at it right, it will cash flow around $700 a month correct?

26 and my girlfriend is 21, but until were married we most likely wont be living together full time. I don't have a problem moving back in and they don't either, so I'm thinking that is the route I will take. Just wanted to see if anyone had any opinions on it. Thanks for the reply! 

Hey Everyone, 

So I currently own a home that I have had some people interested in renting out. Its about 1500 sq ft and a 3 bedroom, 2 bath that has been completely renovated. My mortgage each month is $975.00. 

Im looking into possibly renting it out and in our area I can get around 1700-1800 a month for it, or I could rent it out furnished with beds, couch, etc. for $2200 a month. Its not ideal but that means I would be moving back into my parents home for 6 months to a year. They have a separate guest house, so its not a huge deal breaker and they are okay with me doing that. 

My girlfriend will be finished with nursing school in May, and my thinking is I rent it out for a year, take all the money I gain from it and start saving for a down payment for another home in a year or 2 for the two of us? Would this be a good route to take? I want to get into rental properties, but in my town we have almost none or hardly any duplexes, triplexes, etc. so I kinda see this as my only option to help save and buy a second home. 

Haha yes sorry, that was definitely a typo. Definitely don't want to wait 25 years to investing in more real estate. Im keeping my options open and looking around, so hopefully something comes up that works with my numbers. 

@Gerald Demers, thanks for the reply. It sounds like my best bet with this property is to buy and hold for a couple yours and renovate as i live in it. The house is listed at 140,000 with hoes in the area selling for 205,000-220,000. I have about 20,000 in hard cash, so I'm thinking just doing a conventional loan and holding the property for 25 years and then selling for profit would be the best bet? And maybe by that time, i will have the 20-25% down to consider my next purchase an investment property?

Hey everyone, 

Benn listening to the podcast and reading as much as i can. When listening to the podcast i noticed some of the guest they have, are flipping or renting 60-100 houses a year. My question really pertains to the flipping aspect.

When flipping how do you go about getting financed? Im trying to get into my first home, and think there is some money to be made. But if i say I'm doing it as an investment property they will require a larger down payment correct? Also how do you go about the capital gains tax if your only holding the home long enough to flip it, and not the full 2 years to avoid the tax? 

Really wanting to get into something to flip and I have a foreclosure lined up with the down payment ready, just not sure the best way to approach things, to ensure i can purchase another home in the near future. 

Appreciate the replies everyone! The deal fell through, i signed my contract and was waiting for the seller to sign her contract. In that time she apparently decided to take it off the market and sell it to her ex husband and bypass all the fees of the listing agent, so not much i could do there. 

I did find another house today thats a foreclosure, that i may make an offer on. Any thing i should know about foreclosures before i make an offer? 

Stetson- Ive actually looked into moving to Lubbock, housing there is much more reasonable, and i have seen some pretty good deals. I have noticed homes in the 60-100k range tend to go under contract pretty quickly there, even the duplexes, so apparently the market is there to flip and rent those. My sister actually lives in lbk and has been trying to get me to move there, and i would if i had a job lined up there. Let me know how it turns out for you, i would love to eventually tap into that market. 

Yeah definitely not a problem with living in it and flipping it. Biggest thing it needs is paint, new carpet, new doors, new windows. The layout of the house is good, backyard is nice and big, the house just needs a little TLC. I would be going conventional on the loan. 

Im just wondering if this route is the smart thing to do or what? With rent and everything being so high in this town, i definitely want my own place that I'm not paying rent on, but right now i don't have the funds to have multiple properties, so just seeing what more experienced investors would do in my situation.