All Forum Posts by: Justin Heitter

wellcome , I am in coeur d alene. Tons of great stuff on here....

Hello everyone, I bought first duplex a couple months ago(in  coeur d  alene idaho) for a house hack and down the the block is a very dumpy duplex that is vacant, has a bad roof, siding has holes in it, garage doors are bad.  I always drive by it and i wonder if I can buy the place (its not on the market). I looked up the property on the county records and found out who the seller is, he lives in California and is a RE agent.  

Although not having a clue what I am doing.  I called the guy and told him I was interested in buying the place from him.  He said he had insurance and it lapsed, and ten days later he had a horrible flood/leak in the house.  A local contractor told him it will be $70k to fix it. And he said he didn't know what he was gonna do with it.  If he was gonna sell it or  not.

He didn't tell me this... but I found out some details about the property.  In 2005 he paid 219k for it .  One unit is a 4 bed 2 bath, and the other unit is 3 bedroom 1 bath.   (I could probably get $1200 for rent after its rehabbed, thats what I am charging for my 2 bedroom down the block). The other unit is a 3 bedroom 1 bath. and could probably rent for at least $1100.  

Total Rent $2300.  

Total Rehab $70,000

After Repair Value $250 possibly more 

My offer Price ???????

What would you guys offer considering what this guy has on his hands. 

I wanted to cash out refi so I could get my next property... I am just trying to figure out how to do this...

I posted the same thing on my last two posts...my question is therr

I have posted the same question 2 times...(my previous post) not one single answer. can someone help?

(this is a repost I didn't get any answers from the other forum)

Hey guys I have a quick question. I recently bought my first duplex for $315,000. (10,000 down) (mortgage $1850) Its under owner contract right now but I am switching it to a bank financed property in may. (due to not being at my job long enough to qualify yet)... It was built in 1975, although in great shape, it was extremely dated. 2 bedrooms 1.5 baths on each side. I put 8 grand into one side. I updated all the lighting, put new sinks and countertops in the bathrooms, and kitchens, (nice backsplashes), I put brand new stainless appliances in. And I re rocked and tiled the old fireplace to make it look nice and updated. I was able to get it rented out ($1200) right away.

I moved over to the other side of the duplex(receive $1100 from my roommates, and I had a room professionally built in the garage for myself) and this side has not been updated.  Now one side of the duplex is a 3 "bedroom" (2 legit, and one with no window). I am thinking about remodeling the half bath downstairs to a full bath as well.  I close on may 1st with the bank(I don't need a downpayment do to a refinance) and as of now my credit score is only 595. My question is this. Should I spend a few thousand more dollars on my side to do the same updates and try to get cash out at the refinance date. (could I even get money out, idk?) Or should I pay down my some of my debt to improve my credit by may.  I would like to get cash out so I can put it into my next deal.

My personal income is $7200 a month (including rental income)

My personal expenses are $4100 a month (including mortgage payment)

Total personal debt $27,000 (obviously not including the total mortgage)

Whats the move??

Hey guys I have a quick question.  I recently bought my first duplex for $315,000. (mortgage $1850) Its under owner contract right now but I am switching it to a bank financed property in may.  (due to not being at my job long enough to qualify yet)... It was built in 1975, although in great shape, it was extremely dated.  2 bedrooms 1.5 baths on each side.  I put 8 grand into one side. I updated all the lighting, put new sinks and countertops in the bathrooms, and kitchens, (nice backsplashes), I put brand new stainless appliances in. And I re rocked and tiled the old fireplace to make it look nice and updated.  I was able to get it rented out ($1200) right away.  

I moved over to the other side of the duplex(receive $1100 from my roommates, and I had a room professionally built in the garage for myself) and this side  has not been updated.  I close on may 1st with the bank(I don't need a downpayment do to a refinance) and as of now my credit score is only 595.  My question is this.  Should I spend a few thousand more dollars on my side to do the same updates and try to get cash out at the refinance date. (could I even get money out, idk?)  Or should I pay down my some of my debt to improve my credit by may. 

My personal income is $7200 a month (including rental income)

My personal expenses are $4100 a month (including mortgage payment)

Total personal debt $27,000 (obviously not including the total mortgage)

Whats the move??

Here's my update. I have rented out one side of my duplex,(one year lease) and I have obtained 2 roommates for my side(6 month lease, and month to month) and I have rehabbed the garage for a quick room for myself. All renters and roommates have lease agreements and a definite paper trail. The ending numbers on this place , I am cash flowing close to $200 ( I will post actual number a year from now) and I am also living for free ($500 monthly savings).

Mortgage $1850                                         Expenses

Rent Unit A -$1200                                     W/S/G -$110

Rent Unit B roommate(s) -$1150             Electricity my side -$150 (estimated)

Total-$2350                                                  Internet - $75

=$500 over mortgage.                                = $335      

Total cashflow $165

(When I move out I can eliminate/pass down these expense to my tenants)

My plan over the next 6 months is to pay off all my bills then start saving for my next investment property. However I am also thinking maybe I can just find/create a deal that will allow me to pay off my bills.... 

Here's my update.  I have rented out one side of my duplex,(one year lease) and I have obtained 2 roommates for my side(6 month lease, and month to month) and I have rehabbed the garage for a quick room for myself.  All renters and roommates have lease agreements and a definite paper trail.  With your help (some of very rudely), I have figured out the right way to do this.  Now I can show the underwriters in my future projects income from this property. 

The ending numbers on this place , I am cash flowing close to $200 ( I will post actual number a year from now)  and  I am also living for free ($500 monthly savings).

Mortgage $1850                                      Expenses

Rent Unit A                       -$1200                    W/S/G                     -$110

Rent Unit B roommates -$1150                   Electricity my side -$150 (estimated)

                                                                          Internet                   -  $75

=$500 over mortgage.                                   =  $335 

Total cashflow $165

 My plan over the next 6 months is to pay off all my bills then start saving for my next investment property.  However I am also thinking maybe I can just find/create a deal that will allow me to pay off my bills.... 

I have recently house hacked my first duplex. I have managed to make it cashflow. Now I am getting the bug to make more moves. I have a friend who is a very competent contractor, so I want to try some flips. My ideal plan is to buy, hold, and rent. BRRRR or something.

My concern/question is this.  I have a guy who can (and does) rehab homes.  I want to do it myself.  Is there a way I can talk to some hard money lenders before the fact, so I can proceed with confidence, before I get something under contract? Basically I want to know that if I get something going I can and will be able to fund it.