All Forum Posts by: Justin Bioc

Hi! Not sure if this is the right forum to be posting this particular question, but my parents have a plot of land in Kissimmee that they want to make some money off of. They bought it years ago with the intention to eventually move there, but at the end of the day, ended up staying where they are now. This plot of land has been costing them money in taxes, maintenance, and other all kinds of fees. It's essentially been cash sink hole. 

We don't know anything about developing or even how the market is doing there. They are trying to sell it, but no one seems to be biting. The realtor they last hired to help them sell it was asking they pay around $600 to get the land surveyed and assessed to see if it was buildable. Is this normal? 

Any advice would be much appreciated. We wouldn't mine someone who could develop and split the proceeds or just paying a builder and using the land to generating income with a rental. If you need more details, just let me know, and I can get them. Thanks!

@Christopher Richardson

Hi Christopher! The idea of a 3-family definitely sounds better, and the investment looks way better. I like the idea, but after analyzing this "deal" and really reflecting on how it's been so far, I'm not so sure multifamily is the way to go for someone like me.

You mention purchasing farther away, and I'm already looking into getting into turnkey. If you have any suggestions, please let me know. Would love to connect.

 Thanks for the input! You're definitely taking the words out of my mind. 

@Nicole Jones

I'm rolling the rehab into my mortgage with a 203k loan. I've been looking for almost 2 years now on and off. Boston area is crazy. If this doesn't work out, I'm thinking of considering a different strategy. 

Just looking to get some second, third, and fourth opinions before I blow it on my first deal. Buying a 2-family rehab deal to house hack in a highly competitive and highly sought after town.

About the property:

It a 2-family with two 1bd/1br units, ~1450 sqft total living space. Looking to convert one of the units to a two bedroom. Rents in the local area go from 1450 for a 1bd/1br to 1800 2bd/1br. It's old and needs a lot of repair. The pros are that it's in Melrose, MA, a very sought after town for its distance to Boston, easy access to public transportation and major highways, and school system. Major con is the house needs major repair including de-leading, removing asbestos siding, water damage, and redoing the electrical panels. I'll be self-managing the property. This home only got a few offers despite other homes in similar condition the area getting a ton, and selling for tens of thousands over asking.

The breakdown:

Price: 395,000*

Rehab estimate: 100,000

ARV: 500,000-550,000 (no good comps in area)

PITI monthly: 3,413 (financing with a 203k loan, and hoping to refinance after rehab)

Cash to close: 25,165

Rental Income: 1700 (estimated based on someone I have already willing to rent contingent on a successful conversion of the one unit to a 2bd), renters pays all utilities except water.

Monthly payment: $1713

* after home inspection, I'm wanting to negotiate this down to 365,000 based on some serious negligence by the seller

I'm kind of stuck on how to look at a house hack. On one hand, I'm paying quite a bit of the mortgage still, but nothing in my area is going to be able to fix that. It doesn't fit very well into the rules of thumb, but I do have the potential to build some initial equity. Criticism wholeheartedly welcome as I'm trying to avoid a major financial mistake. I'm having major doubts, but I'm also a total noob. Would it make a difference if I was able to refinance out in 6 months (only way this would happen would be if the property appraised to 563,000) and rent out (1700 + 1450 = 3150) for the estimate refinanced mortgage payment of 3078?

Hi David! Welcome! I'm working on my first deal right now, and concern #4 is the biggest issue I'm running into right now. Not only is it deferred maintenance, but also "quick fixes" from the past that have turned into big problems now. But don't give up. A great deal is a hop, skip, AND a jump away, but it's there.

I'm currently working with Kathy Vasel from Sage Bank, a recommendation from @Robbie Reutzel. So far, she's been amazing in terms of keeping me informed, staying on top of my expectations, and having a lot of experience with these types of loans. Definitely put her on your consideration list. DM me if you would like her info. 

Hi everyone! I will hopefully be working on my first deal. *cross your fingers*

I will be financing it with a 203k loan, but I'm confused about what I should be looking for, in both lenders and contractors. For lenders, should I be completing multiple applications? Am I looking for a different contractor than someone who did a job 50/50? I'm interviewing a couple of banks/credit unions/brokers tomorrow and not sure how I should compare them other than experience with the 203k process and rates. Any guidance/experiences/referrals appreciated. Thanks!

I have a couple of opportunities on the horizon to invest internationally, and I was hoping to connect with some people who have been doing this or are getting started. I was thinking of doing a mix of Airbnb type properties as well as just traditional renting with prospects in the Philippines and in Colombia. 

Some questions that I have right off the bat:

• What do you taxes look like?
• Do you repatriate your money? Do you have to?
• How did you get financing?
• How often have you had to travel to see properties?
• What kind of team will I need (i.e. lawyers, international banking, accountants)?

Mostly looking to vent and see if other people who are investing in the area are feeling the same sentiments. Been looking for a while now for a MF property to house hack my way in real estate, but homes are low in inventory, way overpriced (and over paid for), and generally poor quality. I get anxious being that person that never gets started, but I can definitely see how much of a mental exercise making your first deal is. Thanks for reading :) Any suggestions/tips/frustrations appreciated.