All Forum Posts by: Keric Allen

Chris, Thanks for the info. That’s great news. When is the next meeting? Is there a membership cost or a set cost per meeting? I will let you know when we have some thing set for everyone that has responded above.

Looks like we’re growing. How does everyone feel about meeting on the weekend or the weekday? Respond weekday or weekend so we can figure out what works best for everyone and their busy lives.

Awesome. 4 is a start, hopefully we get a few more responses of the Thanksgiving weekend and can get something scheduled within the next two week.

William, Option 1 - pay close attention to the fees and regulations with HOA/COAs. Sometimes they can make the property negative cash flow or in a worse case scenario prevent you from even leasing the place to anyone but family members. Beware of “special assessments” which can creep up out of nowhere and wreck your whole year if you don’t have some cash reserves. Option 2 - Best Option IMHO. You can move to the new area, get the lay of the land so to speak and not be rushed. However, as other people have mentioned, househacking and having neighbors below/above/in the next room will definitely take some getting used to and can strain relationships! Great cash flow potential this way! Option 3 - A safe and good way to go. Can’t really go wrong if you do it the “tried and true” way of saving money for a down payment and conservatively building your portfolio. Good luck and let us know how it all works out. Keric Allen

Hello,

I’ve been searching for a real estate investor club in the Covington, Mandeville, Madisonville, Louisiana area but it looks like the only thing on BP and from what I’ve googled is in the New Orleans and Baton Rouge area. It looks like we have quite a few members on the Nortshore. Anyone interested in meeting up before the years end or maybe setting up a get together for the first of the year?

Feel free to message me, colleague request, or reply to this thread. Looking forward to hearing from you.

Keric Allen

You say she's a great tenant so I'm assuming she has treated your property with respect and pays her rent on time.

I too would be offended if you accused my significant other of living there when she was not.

If I was the significant other, I would probably tell you I'm not living here and don't need to or am I required to sign anything from you.

Personally, I would not lose a great tenant over this non-issue. 

If you cannot get over it, which it sounds like you cannot from updated posts, dont renew her lease and .....

get ready to pay a months mortgage, screen dozens of tenants, show prospective tenants the property, move utilities into your name in the interim, pay service/connection fees to the utility companies, etc., etc.

Good luck! You've got a lot of great info from previous posts. Let us know how it all turns out.

Ashley,

You are correct! Multifamily properties in Mobile are very old.  Most affordable (bargain/cheap) properties will have several issues (HVAC/plumbing/electrical/roof/flooring/rotten siding/termites/wood rot) that will need to be addressed prior to making the home safe and desirable for you and a tenant. You will also need to allocate a larger percentage of the money you bring in for major expenses, because those older homes will continue to have issues until they are completely gutted and rebuil, which is a whole other endeavor. House hacking is a great way to get started but those multifamily properties in Mobile have a lot of issues. If you do find one that needs only minor repair work, it will definitely cost a premium.

Depending on your personal situation, maybe you could purchase a small affordable SFH, preferably a 3/2 with a garage, in a great school district (Elsie Elementary, Bernice Middle, Baker High) and slowly fix it up over a year while you continue to save and learn. Sell the property after that year or move out and rent it out. You just have to be ready to live in a construction zone for the next year.

Maybe you can rent a room to a close friend to increase income.

Just keep learning and reading.

Keric

Ashley,

Good for you in taking the first steps to investing in real estate. You've already got some great advice. Start thinking about why you actually want a multi-family property in Mobile? Every market is unique. What type of tenants are you hoping to attract? Will multifamily properties attract that type of tenant. Start to identify how much a multi family property in Mobile will cost you, which will vary depending on what areas you want to invest in.  Keep in mind single family homes in Mobile can be very inexpensive in that area! You have a lot of time so keep learning and saving. 

Keric

Paint and caulk can go a long way when it comes to making a house look good in pictures. I always get and recommend a property inspection. 300$ to identify a $10,000 problem is well worth it. Who knows, this property may have 0 issues but eventually you will come across a property that "looked good" in pictures yet had some major issues. Protect your money by inspecting the property and using that report to renegotiate the price of the house or have the seller fix the issues! Good luck.

Gigi,

Gregory has some great advice. The thought of starting a real estate investing career is exciting but costs will come up. Having a solid emergency fund as well as eliminating any unnecessary debt will allow you to put more money aside for REI and will make you a more attractive borrower to lenders. If you can't come up with the 20% down, maybe you could move out of the house you own, rent it out, and find a property to purchase as a primary residence that doesn't require the 20% down.

You can always ask the seller to lower their down payment requirement or allow you to spread it out!