All Forum Posts by: Douglas Larson

All the big Buy and Hold investors will tell you to start with the management company. Find a great one and ask them specifically about the property and the area, and if they want to manage it, along with other properties you will have. If they hedge or hesitate, it may not be a good property. I self manage most of my SFRs and I don't know multis that well but I know of a lot of investors that have gotten burned in Ogden with druggie tenants, high turnover and expensive maintenance on OLD homes. 

Have fun out there!

I really like Thumbtack.com for subcontractors. I have found great, highly-recommended subs for every trade like window replacement, HVAC, plumbing, flooring and painting. I would assume they've got some general contractors on there too.

I'm not affiliated with Thumbtack in any way except that I'm a customer.

You're in the right place! Listen to every  and  you can. Josh Dorkin has put together a great community here with every resource you can think of. The free content is priceless and the  are even better!

Many investors start out  and move on from there. That's how I got started 18 years ago. Have fun!!!

Home for sale, Kearns - 3 bed, 1 bath - as is. Great value for a cash buyer/investor who can move quickly.

$174,000 firm.

Current listing in the area start at 205K. This one is a little slim for a fix&flip but would be a great buy and hold rental. Needs about 6K to be a great rental: Carpet, Paint, Hard flooring in Bath and kitchen, baseboards. 5 windows should be replaced and Water Heater works well but it's old. I just rented a similar 3/1 two blocks away for $1350/month.

Please message me for an opportunity to see the home. Earnest money will be $5000 nonrefundable and must close in two weeks or less. 

I've got more pics if you PM me.

Sorry, no seller-finance and please no agents trying to list. 

Thanks.

I don't know the Saratoga market for rentals. It used to be that nobody wanted to live in Eagle Mountain or Saratoga Springs because it was just too far out. Now, with the new roads, new businesses and all the shopping that's gone in, it's just another part of the valley. If you really can create another $450 in monthly rents and likely increase your property value by at least the amount you invest, your improvements at $30K seem like a no-brainer.

To find the right contractor.... that can be tough. Always get referrals and references! 

I find a lot of subcontractors and handymen through Thumbtack.com.

have fun out there!

I know a fantastic agent in Park City. I've used Craig Popa for many buy and sell transactions. PM me and I can give you his info. 

"Great deal?" 

Looks like a negative cashflow even with 20% down. Do you have some other insight or advantage? Amazing financing or a discount to investors? If the only return is the hope of apreciation, that's not a great deal. It's a retail purchase with the hope of continued appreciation (or at least inflation).

Hi Bernard.

I ran across this post from a few months ago. What did you decide to do?

There is always a cold, hard math formula that may indicate the right financial approach, but there is so much more to life than following the numbers or tax implications, especially if you are talking about your personal residence. 

My first inclination would be to hold a good cashflow property and buy another home for yourself with the low mortgage rates we still have. Fall and winter can be a great time to buy and get a good deal. If you buy another Duplex or a "functional duplex" with a basement you can rent out, you can keep your expenses low and save up for more investing.

That said, If you love where you're living, go buy a rental on the west side with some heloc money on your current place and a new mortgage. West Valley, Taylorsville, Kearns - they all have some great opportunities for good cashflow. You just have to screen your tenant applicants well. I've got several rentals over there now and another under contract. 

Above all, have fun out there!

Hi @Stephanie Clark Welcome to BP!

Daybreak is very restrictive on ALL rentals! I have flipped a townhome and recently a condo in there. There is a $25K fine for renting homes and condos if you have not lived in the home for a year. We got around that with a seller-financed sale. We are receiving income from the property but still complying with the rules of Daybreak.

Regarding short-term rentals, I have seen some AirBnB listings in there but it's a big no-no with the HOA. I wouldn't risk it!

You didn't mention anything about your personal needs or wants so I'll just throw out a couple ideas:

If you don't need the space (6 bedrooms and 4400 sq. ft.) I would do only the necessary repairs and upgrades (You should not need to spend 50K on a home built in 2007) and then sell that puppy in the crazy, hot spring market that happens every year from March through June. Then, I would buy a home that you can "house-hack" and cut your expenses dramatically. Better still would be to look for the right home to house-hack right now as the winter begins. I always find the best deals in November and December.

Have fun out there!!!

Many investment institutions like Fidelity or company 401Ks (or local banks) say that they are "self-directed" but if you mention real estate they will say, "Oh, you can't do that!" You need "Qualified Custodian" and there are many out there.

My wife and I rolled over her $100K 401K to a self-directed ROTH IRA with Equity Trust in Ohio after she left full-time work several years ago. There have been some frustrations working with Equity Trust over the years (slow processing, mistakes on property descriptions, miscommunication with title companies, etc.) but overall it has been a great investing vehicle. The ROTH conversion cost us initially with some extra taxes, but the eventual withdrawals will be tax-free! We have purchased and sold several vacant lots and one condo. The value of the IRA now, after about 7 years, is about 240K - all tax-free after age 59. The fees each year depend on the size of your assets but it's between $500 and $600 now. There are also some nominal fees whenever you buy and sell an asset but its under $100 even with overnight documents and notarized signatures.

We have no regrets but if I could go back in a time machine to 7 years ago, I would tell myself to keep the funds at Fidelity in a Roth and buy Apple stock!!!  Sadly, no time machines....

I'm not going to complain about the tax-free returns we've had. It's worked out well so far!