All Forum Posts by: Kelvin Lozano

Hi Derick, welcome to BP. If ever you're in the Iowa City area, feel free to reach out.

@Paul A. haha nice add

Thanks @Chris Mason. Matches w/ other responses. It sounds like I am good so long as my intent to owner-occupy for a minimum of 1 year is clear.

Hi I'm looking for small multifamily homes in Iowa City with a current rental permit. 

It doesn't matter if it currently has tenants in it now.

I'd prefer C+ to B condition with value add opportunity.

Max price $400k.

@Charlie MacPherson and @Anthony Gayden, thanks for your answers. I'll make sure to openly talk to my lender about the possibility.

I'm listening to Brandon Turner's book "The Book in Rental Property Investing" where he mentions that a house hacker must live in the property for a minimum of 1 year in order to be able to "qualify".

What exactly does he mean by "qualify" and what happens if the investor/house-hacker moves before the 1-year mark? For me, the largest risk I foresee is job relocation.

Thanks,

Kelvin

Hi Prakash! Brandon Turner created this book list that was just updated this year.

https://www.biggerpockets.com/renewsblog/wp-conten...

Hi Sarah, I don't have any multi-families but I'll share the CoC and Cashflow minimums I've heard on multiple BP Webinars. 12% CoC and $100 CF/mo.

What are your current requirements?

Hey Matthew, I've done both month-to-month and year-long leases. As with many choices, there are pros and cons. I thoroughly interview potential tenants so I'm generally confident that they will be good for the long run and that's why I prefer leases... plus since I put in a lot of work on the front end finding the right tentants, I'd rather not be at risk for looking for new tenants for at least another year. It's up to you to consider your own preferences though.

Since we didn't intend for this unit to be an investment property when we first bought it, we never ran any numbers for cashflow. As a newbie, I thought it would strictly be income - (mortgage + HOA + Taxes + Insurance) = cashflow. If it were that way, the cashflow would be a nice $350. I even thought it was way better than that since $360 of the mortgage is going toward principal.

But since I've been on BP starting in the last couple of weeks, I've learned that is a big big mistake.

So, I was thinking. One way to decide if I should sell vs. refi is to analyze this property as if I hadn't yet bought it.

I'm going to assume 8% for vacancy and 8% for management fees (even though I manage it). The part I'm a bit confused on is the repairs and cap ex. The condo was built 10 years ago but the HOA covers maintenance of everything outside. How much would you reserve for these 2 areas? By the way, the square footage is 1350.