All Forum Posts by: Ken M.

@Ken M. we live in one, it has an attached unit, but with a door that passes through from both units. They are designed particularly with mother-in-law or next generational living in mind. The one that we live in has a kitchenette, but not a stove because then it would have to be zoned multifamily. We do have a tenant in ours but have closed off the pass through door. The unit shares the same heating and cooling as my own house. That is one of the issues we noted AFTER moving which is annoying. Luckily our tenant is easy going.

his entrance has a different front door but not his own house number.

OP, keep in mind not having access to heating and sharing same water heater and etc will require an easygoing tenant in the nextgen. Pay attention to what's connected.

we also use the same mailbox. On Zillow, we simply call it #A with the same address.

Learn something new all the time.
I don't know the layout, but code calls for two exits in case of fire.
Be careful on "closing the pass through door" if it's designated as the second escape route.

1 Vote

Phoenix, Arizona

Quote from @Leslie L Meneus:

I would like to connect with like minded individuals. People who want to do multi-family deals of all sizes but I have yet to meet anyone who have similar ambitions all-be-it this is my first post as such. Any advice? Anyone want to connect?

It's really a matter of how much money you have to put into the deal. At a minimum I'd suggest $100,000 cash. Less than that gets you in the door, but doesn't get any attention. No serious investor is interested in smaller amounts. If you aren't in that club yet, do a few flips and build some bank.

1 Vote

Quote from @Khon Kounbandith:

Investment Info:

Single-family residence fix & flip investment.

Cash invested: $60
Sale price: $365,000

Sub-to deal with homeowner pre-foreclosure

How did you find this deal and how did you negotiate it?

My partner went door knocking and negotiate on a cash deal

What was the outcome?

fix and flip and now on the market for sale

Amazing. How'd you do that for $60? Escrow and title alone are $3500?

0 Votes

There is plenty that goes into flipping. But to be successful and profitable, takes some distinct characteristics:

1. There needs to be demand. Are other flippers working in the area or will you be the only one. Don't reinvent the wheel, flip where others have made money flipping. It isn't rocket science.

2. Are Days on market shortening or stretching out in the neighborhood. Obviously, you want areas with short DOM.

3. Are hard money lenders active in the area. They won't be if it's a bad flip area. Let the guys who risk their money help you focus on good areas.

4. Is there a significant amount of difference between what you can buy a fix for and what you can sell the finished flip at?

5. When you add purchase price, carrying costs for at least 6 months, materials, labor, real estate agents costs and taxes, do you have at least a projected 10% profit?

6. You can go to Redfin or Zillow and see the level of finish houses with short DOM have in the area, can you at least match that quality?

7. Now, with those out of the way, you can worry about the roof, foundation, sewer, HVAC, pool, etc, because these don't matter at all if you can't get the property sold.

8. Is the property under a high tension power line or down wind from the horse rendering factory or on a main thoroughfare or some other obstruction that you wouldn't want to live near? Well, others won't want to either.

You get the idea. Think before you buy. What is the end product of your effort and where is it located, how long will it take to sell?

2 Votes

Quote from @Guillermo Perez:

Does anyone have experience with seller finance? There is a house near mine that is abandoned. I got a hold of the owner by looking up his information on the county website. I asked if he was willing to sell the house cash? I was planning on doing a BRRR. I would use my HELOC to make the purchase and rehab. The owner said he would sell but at a very high price. Here's the details:

ARV- $210- $220K

Rent: about $1,900/month

3 beds/ 2 baths

Needs: New roof, New HVAC, New fence, Minot touch ups inside like paint and cabinet touch ups.

Rehab- About $40k

I offered $140K and he countered with $190K. Should I stop pursuing or is there a way to get this deal through seller finance?

He isn't a motivated seller.

If it will rent for $1900 a month, that means to make money you have to have a payment that includes, principal, interest, prop taxes, insurance, at less than $1400 a month.

$190,000 at 3% interest is P&I $801 + prop tax plus insurance a month. I'd offer him his $190,000 if he will take payments at 3%, NO BALLOON, you'll make good money and get tax write offs.

2 Votes

Houston, Texas

Quote from @Zach Rumfield:

Been doing some comps in Houston. I'm am running into a lot of properties that the MLS says it sold for less than $5,000 dollars. How could this be possible? Does it mean something I am not understanding? Would this be due to a foreclosure?

Texas is non-disclosure. You can't be sure what a property actually sold for because they don't disclose. What you can do is get a report what the properties were listed for, on the MLS and take a guess.

If the property sold for less than $5,000 it's likely a small piece of land that is home to rattlesnakes and other interesting creatures.

0 Votes

Houston, Texas

Quote from @Jason Baker:

I’m A 11th Grader And I’m Committed To Being A Young Real Estate Investor After HighSchool...Just Trying To Seek Advice

The average person who went to college carries $40,000 in debt. But, they do get to eat a lot of pizza.

Debt prevents you from becoming an investor.

Household Debt Rose by $184 Billion in Q1 2024; Delinquency Transition Rates Increased Across All Debt Types

May 14, 2024

0 Votes

Quote from @Nithin Kumar:

New to Arizona and I am seeing a few properties with next gen configuration. In CA, there used to be two different house numbers and it was straight forward to rent them as a separate unit. Trying to understand the strategy for investment properties with next gen configuration from the experienced. tysm in advance.

Go ahead & explain "properties with next gen configuration" so we know what you're talking about.

0 Votes

Phoenix, Arizona

Quote from @Jimmy Rojas:

I will be a 1st time home buyer , when getting a loan from a bank how do i show them proof of income from my 1099 form/s. I work at my brothers business as a independent contractor , he has an accountant for this business is necessary for him to to this job or i can do it myself.

You show them your bank statements and tax returns

0 Votes

Phoenix, Arizona

Quote from @Maxwell Robertson:

Hello everyone, my name is Max, and I’m an aspiring real estate investor focusing on bird-dogging and wholesaling. I’m motivated, eager to learn, and looking for a mentor whose insights and expertise can help me grow and scale my business. I deeply value the experience seasoned investors bring and would be happy to provide support through research, sourcing deals, or other tasks in exchange for your guidance.

I would knock on the doors of every local investor I can find and find one to work for to get started. I'd also join the local REIA and make connections.

1 Vote

Raleigh, North Carolina

All Forum Posts by: Ken M.

Ken M. has started 60 posts and replied 770 times.

Post: Nextgen Properties in Maricopa county

Post: Networking? What do I do now?

Post: Sub-To Pre-foreclosure Deal

Post: How To Know If Your Flip Might Be Successful

Post: Seller finance question

Post: What does it mean when the MLS says a Single-Family sold for less than $5,000 Dollars

Post: Going To College For Real Estate The Right Move?

Post: Nextgen Properties in Maricopa county

Post: How to show proof of income with 1099 form

Post: Aspiring Real Estate Investor and Future Developer