All Forum Posts by: Lucas Kendrick

Solid numbers with a bit of a track record behind you, looks like you got a winner here! Keep us posted!

Congrats! The adventure begins! Did your real estate agent figure out what the ARV is for the place? Vet your general contractor now while you have the time instead of later on, when you don't. It might be worth asking your hard money lender for GC recommendations. They might not know a good one, but they probably have heard of bad ones. Take lots of before pictures. This is an exciting time, please keep us posted!

Congrats @Alexandra E Aponte for starting the process and being on BP. Both will help you out! Now to answer your questions.

1) Go find a real estate lawyer that deals in just real estate (search BP), and ask them about LLCs, and Trusts. 

2) This was more of a statement and not a question, but I'll get back to this one at the end.

3) Keep saving it because of what you said in #2 ^.

Please slow down, and take a deep breath. Attend a few local BP investor meetings, get some contacts, talk about "investing" vs "being a home owner". You keep using the word speculation and appreciation, and that makes me nervous. Investors use the words cash flow, CAP rates, ROI, etc. If you do go out and buy a 400k house/apt, and only put down 5%,you will use the rest of your cushion. If something was to happen, you could be sunk.

So now for some GOOD NEWS. It is a 2009, house so it should have very little maintenance on in for several more years. Have you though about, making your house a duplex? or adding a room mate? Is there some way to squeeze out more cash flow? 

BP has some great resources that could help.  Please keep us posted, I would love to hear what you do. And remember, worse case... down town is only 20min away :D

Welcome! There are lots of resources in your area! Network around and meet some folks. There are some great resources here and locally. Don't pull that trigger to fast! try to go to a few meetings and get to know a few local guys, brokers, plumbers, handymen, investors, etc... spending a few more months could be well worth it to you. Keep us posted on whether or not you get that 4-plex!

Just quickly looking at the numbers, this is SUCH a tight deal that I'd call it a no go. For your FIRST deal, I'd like to see you have a little more meat on the bone. You are bound to have more problems/mistakes your first year or so and I would hate to see you get eaten up to badly. (rent $2540 = Max price $254,000 - old roof, -old furnace, etc....) In the end it is your call. Keep us posted! :D

You did a great job! Getting the rent up that high makes all the difference! 

WOW, thank you for everyone who posted! This post is littered with gold nuggets and truly great (non legal) advice (LOL). Next time I "have" to rip up the carpet, I'm putting down plastic if I decide to go with carpet again. 

@Jeff G. Thanks for posting it for us to "discuss" it. Sorry it happened to you.   Let us know what you decide to do from here. Keep us in the loop.

Welcome to the plunge! Not having a W2 closes A LOT of doors, and I agree with you that you will have to be a lot more creative. Subject to, and/or assign, wholesaling, etc... These will all be words you will have to get used to.  Need is the mother of necessity and we are all wishing you the best of luck! That said, there is no shame in having a W2 AND having a job you like to do. Before I retired, I worked retail and worked 3~11pm giving me "day time hours" to work ON my business.  Please keep us updated! And finally, thank you for serving! 

@Justin Tahilramani is correct. It depends A LOT on city/county and how many building permits are being issued for said services. NOW that said, if there is already water sewer and electricity to each lot and some houses already built on some of the lots, that is a slightly different story.  

The second down side is the 50% LTV on empty land lots. The banks think it is risky and you should consider it the same.

Hope this helps and let us know what you find out about the area.

Kelly, 

I don't know of any Turnkey "companies" near Columbia. That said, you will see a few turnkey houses pop up here in Maryland BP every once in a while. Set your keywords for them and you will get notified as soon as they are posted. Sorry this isn't better help. If you find one you like or don't like, please post it here and let us know what you think.