All Forum Posts by: Arthur Leao

Thanks for the informative reply!  So, I guess my options are to either refi the current rental or just wait and save up for a new down payment on a conventional loan.  Is that right?

Good evening BP Pros!

My wife and I would like to purchase rental #2!  However, we need some guidance on how to pay for it.  Here's the situation:

• Rental #1 
  • value = ~$122k (according to zillow estimate)
  • mortgage balance = $63k
  • income = $1050
• Roth IRA balance = $16k
• Current cash balance and debt to income ratio are likely a no-go to just get another mortgage.

Our goal is to generate more passive income.  My understanding of a self-directed retirement account, though, will make it so that the income from the rental will have to go back into the account and we cannot use it as passive income for our normal personal expenses.  Or am I missing something?  

We would like to follow the BRRR strategy and would likely be looking for something in the 50-60k price range. Should we refinance rental #1 and use that to purchase #2? Are there any other avenues we should explore? How should we go about analyzing the numbers to make a decision?

Thanks in advance for all the help!!

Arthur and Alba

Gotcha.  Thanks!

I'm interested in a property that is listed as a short sale for $30k...  It needs some love.  My understanding is that the bank needs to approve the amount.  How much are banks willing to negotiate?  I understand they are not in the business of real estate and want to get rid of the property, so how much can I use that to my advantage? Or when they set an amount, that's it?

Thanks for the reply!  I guess I was looking for any tips on obvious and/or common deal breakers I could find on my own before paying a GC to come take a look at it, only to have him/her look at me like I have three heads for not catching this on my own.

Is there a "common deal breakers newbies always miss" type list here on BP?

I have a relative who I see every once in a while and who has been working in construction/roofing for a while.  She recently told me that she became a GC and would be interested in teaming up with me on real estate investing.  I don't distrust her, but just for peace of mind, how can I verify that she has all the necessary licenses?  ... Are their any GC licenses required (in Georgia)?  Is there a public database of it?  The last thing I want is for something go wrong and then have her say something like, "oh... I meant to say that I'm ABOUT to be a GC."

I'll go ahead and preempt what I assume may be many people's response: I know many may tell me to not work with family, especially if I'm already this skeptical, and I completely understand, but that's not the question I need answered.  This question can apply to non-family too.

Thanks!

Arthur

After listening to lots of BP podcast, I've decided this is what I want to do, and I am interested in the BRRR method. I've started looking around for potential fixer-uppers and have come across several prospects. I need some pointers on what to look out for during my first tour of the place. What are clear red flags or deal breakers? I don't want to find a "great deal" just to end up having it be a massive money pit due to my inexperience.

Thanks!

Arthur

Thanks, Craig!

My understanding is the 50% rule is used with multi-family units, like I own a multi-family structure, thus responsible for building maintenance etc. The property I have is a single studio WITHIN the multi-family building and all building maintenance/repairs are covered by the HOA payment.

Thanks for that insight!  This is precisely why I joined the BP community.  I do not have the time or money to make all the mistakes myself, so I will gladly listen to others willing to share their experiences.

My condo is in Chamblee, and I purchased it at the bottom of the market, for $70k. Other studios within the complex are being sold now for ~$100k+. I found a tenant for $1,050. Mortgage is $488 and HOA $168, totaling $656. Is the 50% rule not including HOA? Otherwise, 50% of $1,050 = $525. $525+656=$1,181. So I'm looking at an average loss of $131 per month? Is that right, or am I missing something?

Thanks again!

Arthur