All Forum Posts by: Loren Clive

tell them that you are their landlord, not their dad. also, they are free to call the cops if the noise violates a local noise ordinance. If they can't figure out how to live together peaceably, give them both notice. 

If you keep playing into the cop role, they will simply keep tattling on each other. DON'T DO IT

I have no idea about Canada, but here on Maui, having the second dwelling is a huge selling point! I don't get why you think this will limit buyers?

no

why are you taking advice from someone who's an employee? you ever heard, "those who know do, those who don't teach" No disrespect to your professor, but you gotta consider the source. 

I bought my first home as a house hack. I still own it even though, sure I could sell it in this high market 3x what I bought it, but I'm not going to find something else to equal the 60%+ ROI.

A wise man once told me never sell something that makes you money. If you're going the hacking route, sounds like you're a buy and hold investor vs a flipper. Having done both, buy and hold is so much easier and less stressful. You can't go wrong buying a cashflowing property

have you considered buying in your college town and renting to students? classic real estate investment.

I would stay also. Having the franchise income will put you in a great position to begin acquiring real estate and is well worth the two-year sacrifice. IMO you're not going to find a new 9-5 in two years that will allow you to earn as much. Plus, you're not going to qualify for a loan unless you're in the same industry for the past two years, so you can't try out jobs in different industries.

Suck it up, do your time, then start investing. Hopefully in two years the market will have cooled a bit.

BTW, if this is chick-fil-A, you gotta do it! Those things are cash cows!! I looked into doing a franchise myself, but as I already own two other businesses, wouldn't work for me.

Hm, here on Maui this is pretty standard practice. You could offer to buy the materials for him?

I have three condotels on Maui. All of them cashflow. But really I only use one of them personally on occasion. It's a hustle!

in my experience, second home mortgage rates are lower than investment properties. but if you're buying a home in Hawaii on the same island where you live, often lenders will not qualify it as a second home.

tax implications would be something to discuss with your accountant

Abner, it depends on your lease. If your lease is fixed, you don't have to give any notice not to renew it. If it's got that month-to-month box checked after the fixed term, you need to give the tenant 45 days notice. 

Either way, I would still communicate with your tenants as people often don't read their leases. 

Need more info . . . Are they both going to be on the loan? Is she contributing cash?

I would advise if your friend is the only person on the loan and can buy the house by himself, just put it in his name. This helps if they ever break up AND if she ever decides she wants to buy a house. 

Because if she's not on title, she can be a first time homebuyers/owner-occupant for any home she wants to buy, and take advantage of the preferential interest rates for owner occupants.

Another factor is that if both are on the loan, they will both be liable for the entire debt, and it will hurt them going forward because of debt to income ratio if they want to buy more properties.

He can always give her a life estate in the unlikely event of his death if it's an inheritance issue. In which case I would speak with an attorney.

Bottom line, whatever they decide it should be crystal clear going in to both parties.