All Forum Posts by: Brant Richardson

It sounds like you both have some responsibility. There was already warping so the tenants are certainly not responsible for that. If there was already warping then perhaps there was an ongoing leak right from the start. The leaking valve was your responsibility. Any damage caused by the washing machine (which is probably most of it) is the tenants responsibility, but it is going to be tough to prove. I'd say maybe split the costs since there was already warping. If you have good pictures of the area before they moved in that would help your cause.

That's an interesting plan Jerry. I don't think I would purposely enter a deal that I was cash flow negative or even break even on, despite being no money down, with a few exceptions. The exception would be a property that was very expensive, if there was a small percent in appreciation it would pay off big in equity and the monthly principal pay down would add equity quickly (hopefully more equity added than cash flow subtracted). Another exception would be if I was very confident in appreciation or the property was undervalued and I had immediate equity to flip in the not too distant future. You say that coming up with a down payment is a difficulty, but adding negative cash flow will make it even more difficult. If you have several of these properties the maintenance could eat you up. I am working toward 10 properties that make 10+% ROI, at that point a years worth of cash flow will bring in enough for the next purchase and my snowball will start rolling.

There are renovation loans which will let you chase the deals that need rehab. The lender gives you a loan for the purchase price as well as the repairs, you need to put down 25%.

If the property is close enough to do the management then you definitely should. It is a good learning experience and obviously you make an extra $1000. If you get good tenants it is pretty darn easy with only one rental unit.

I would stick to your offer if you aren't at $100 cash flow. It was looking good till you hit me with that HOA fee. Look into the HOA further and see if you really need the insurance, HOA may have you covered. Prop management should only be $1008.

Like Alan Russel said to do. If you do not need the cash from a flip to live on then keep it. Rehab, rent and refinance to get all your cash out to put into the next one. Build your portfolio up. Flips will give you a chunk of cash but once you have built a nice portfolio of rentals the cash comes in every month.

Welcome aboard, Bigger Pockets is an incredible place to learn. Check out the podcasts and the beginners guide. Santa Barbara is a tough place for real estate investing unless less you have a big chunk of cash to work with. I am currently investing out of state, let me know if you are interested in going that route.

The rent in my investment is more than 3x the cost of the mortgage. It blows me away that renting would be something a person would consider there. Coming up with a down payment and qualifying for a loan are a real barrier for people.

As is said in the pocasts repeatedly is "what sets apart those that succeed from those that fail...persistence". Don't give up on that goal to buy 10.

Yeah the tax strategy books are definitely more time sensitive. It takes a while to get published in the first place. Then by the time a lot of people have read them to give good reviews they are even older. Working with a professional is important but I would still read books so you can bounce ideas off them. There are pros reading on BP who will answer questions too.

I think one of the major questions about whether to go with a turnkey company is how serious you plan to get with real estate? If your thinking along the lines of "I want to diversify my investing and get a rental unit, maybe another in a year or two", then turnkey would make since. If you're thinking "Real estate is my game and I'm going to make my stand in market X. I'm going to grow this portfolio to 20, 30, maybe more", then you need to learn that market and set up the team. It would be worth the time investment to learn and network and maybe make mistakes right from the start.