All Forum Posts by: Kyle Falkenstein

I'm curious as to how HMLs work:

-with getting paid once approved? do they just deposit the full purchase and rehab costs into your account?

-How do monthly payments work if there are any or is it more of a balloon type loan? if so on balloon could someone explain a little more on how that works please.

-Is it possible to get a HML with no money up front or very little upfront?

Thank you in advance for your patience with my newbie questions.

@Natalie Kolodij this may sound like an odd question but even though I am in the Marine Corps and get taxed on that. I would still get self employment tax for doing wholesaling on the side?

For everyone that is or has wholesaled in North Carolina...I plan on getting in contact with a CPA and attorney. I was curious on people’s experience. How much taxes are taken out of your assignment fee checks? Also are the taxes taken out at the title company before receiving my check or would I just need to set money aside for taxes?

@Ned J. I definitely agree and love the thought of going to $850 with letting her know in the increase of rent each year in the lease. Thank for your input.

@Jonathan Trimboli I’m all about people being blunt or showing tough love. You’re absolutely right and what I’m trying to tell my wife..the ball will be in the tenants court, she can stay or go especially with $850 still being under market value.

@Jill F. So I’ll be living on “dump” side anyways and plan on putting new flooring, appliances and fence while I’m living there. So if she wants she can just move next door. Hopefully she waits at least a year since that’s when I’ll be moving duty stations. Thanks for your input :)

I am getting ready to purchase this duplex for the intention of hacking to get out of debt from my early 20’s. The current tenant in there has been in there for 15 years! She’s sweet, kind, doesn’t complain much and really takes care of the place cleanliness wise. Unfortunately, she said she was moving out to a 1 story since she’s starting to have trouble with stairs. The previous landlords have kept her at market rent from when she moved in ($695) which is another reason I was fine with closing on this place because I could bump the rent up to market value ($950-$995) in my area. Now that closing is right around the corner, she’s changed her mind again and decided she wants to stay now. Now I’m faced with a dilemma. Slowly increase her rent over the years which defeats our purpose of house hacking or bump it up to market value and put the ball in her court to see if she still wants to stay? I’m leaning towards meeting in the middle and doing $850 to see if she takes it or leaves it which would still allow me to pay slightly below the rent value of what she’s paying to pay off my CC debt faster and still save for Cap Ex, maintenance costs and all that set aside but I won’t cash flow at all till I move out and have both sides rented.

What is everyone’s thoughts or advice?

Landed my first rental property for house hacking. My wife and I are wanting to try flipping 1 property in the next 6-8 months. So I’m looking for advice on few topics and advice in general for 1st timers.

-Money/Financing: We have very little and are looking into doing Hard money combined with “partners” money. Good or bad idea? How would you do it differently?

-Deals: I’m looking at doing “driving for dollars”, door knocking and realtor. Any other ideas that helped you find your first deal that didn’t cost and arm and leg (not trying to be a cheap *** but working with what I have). How much did your style of marketing cost?

-Misc: Anything else I should watch out for? Be worried about? Any 1st time advice at all would be great!

Thanks guys!

Here is my basic brainstorming plan as of right now:

1. Find a deal

2. Analyze Deal

3. Make an offer

4. Due Diligence and get contractor to estimate rehab.

5. Find financing (Hard Money and Partner)

6. Get financing/ close

7. Rehab

8. Sell

@Ronen Avisar thank you!

@Scott Henrikson definitely have done AirBnB in the past with renting out a room in my previous house. It’s just a start up cost I don’t have to provide all the amenities a whole place would need. I looked into it and yes it would be a killing, so something I’d be interested in the future.