All Forum Posts by: Luke Sanderson

 I find it is best to backwards plan from large end state to small actionable steps. Your end state might be "replacing your salary through multi family investing." What do you need to do before that? Identify how many units unit, each producing X amount, in order to replace your salary. To buy that many units, is it better to focus on 4plex and below or commercial (this is probably subject to your own personal abilities and skill set- or the skillset you identify needs to be built). In order to have a certain number ,you have to have the first one. So identify everything you need to do to buy that first unit. Is it education- formal or informal through podcasts/reading? Raising funds? Setting up a funnel to find deals? Build a team? Will you do these one at a time, or will you focus on three lines of effort equally?

Right now I am focusing on two lines of effort- Education and building funds. I listen to podcasts and read every day (long commute). I spend a lot of my free time side hustling to build up funds for my next down payment, since I just purchased a property this summer. Once I get above a certain amount, I'll transition my time to building a funnel and developing a team to find deals and close on my next property.

I'm unfamiliar with your market, but generally when I have rented or owned, a 2 story was preferable. As an owner of an already built structure, it was preferable since the cost of replacing the roof is going to less. It let me have a larger sq ft in a smaller footprint and I had bedrooms over the garage. Another thing to consider is that yards are an attractive feature, and I'd be willing to pay more for a place with a larger yard (I have dogs and enjoy spending time outside). 

I think you have a great plan, hope it works out for you! One idea I have heard to maximize you usage before you build is use the lots as short term storage for boats, RVs, or containers. You can rent containers and then rent those out like a storage facility. Since you aren't building a structure, you don't have to change the zoning (from what the podcast I heard this on was saying). If you are developing them 1 by 1, it might be a viable option to generate cash flow while you build.

Just my 2 cents.

 I wish I could upvote this more than once. Excellent points!

I have similar people telling me not to invest in real estate. One family member in particular had a rental property because they inherited it when a parent died. Couldn't stand to sell it. The house was huge, and in a tiny town with no industry or revitalization going for it. She almost never did required CAPEX or maintainence or got things recorded, so when part of the roof collapsed it was a big stressor. When she went to sell she didn't have a record of the oil tank being removed some 15 years earlier and had to pay a large bill to get the property inspected for contaminated soil.

She always tells me how terrible and stressful rental properties are, and that they never make any money unless you manage them yourself. So just be aware of the experiences of the people giving you advice.

I don't think it has a document number, now that I think of it (and Google didn't tell me). Can you get in touch with the soldier to ask for the orders, not the 4187? Or the second page of the 4187? If it has the commander's name on the bottom of the first page you can probably find them on Facebook, honestly. Do you know what rank this person was, by any chance?

I'll second the above. A DA 4187 is a Personnel Action Form, not orders. A 4187 is used to record any personnel action such as promotion or a move, but is different than PCS orders. Orders will always have a report date, a no earlier than report date (sometimes you can show up early), and other pertinent information such as number of days travel authorized. Chris Lockwood says he has more experience with this, so he probably does something HR or legal related (I'm guessing). A 4187 is not good enough to break a lease, based on everything I know. You need no sh*t orders to do that, because you can't screw over the property owner like this person is trying to do to you. Look at the form and find Section 5, block 12 (at the bottom of page 1), it will show who approved the form. If the service member gave you both pages, look on page 2 and it should have an address and phone number for the soldier's superior. Might be easiest to give them a call and see what is going on, they should be able to provide you with the proper documents if the soldiers wont. 

Veteran here. You usually get notified on a PCS move like 3-4 months prior, but you don't get actual hard copy orders with the actual date on them until like 3-6 weeks out or so. Dates on orders always change due to the mystical  Human Resources Command and their magic Ouigi board. Whenever I have PCS'ed I notified the landlord/ PM agency that I had a move upcoming with the expected date, and when I got the orders I would send them a copy. I own property near a military base, so I know the fear of having someone move out unexpectedly. However, the military usually moves people every 36 months so it "should" be 3 years of guaranteed income. Additionally, the Army ast least has moved to a system of moving 80% of its personnel in the summer months and 20% of its personnel in the winter months (see Ouigi board above. No idea why). So, that means there should be some people moving into the area during this season.

If the house is trashed or the security deposit doesn't cover the damage, contact the installation housing office about recovering damages. Its a big bureaucracy, but if you can be more pigheaded than the housing office personnel you can actually get their wages garnished for damages/ non-payment of rent. It's a process (I haven't personally had to experience on either end), but I know it is something that is commonly known in the military. If you destroyed someone's house or skipped out on rent, they can and will come after you. I'm sure there is some part of the uniform code of military justice that could be brought into play, but you would have to talk to a military lawyer about that. Bottom line is, you can get your money for damages or rent lost due to them not informing you of their move. Many states have a "If you are PCSing, you must provide the landlord a copy of your orders at least 30 days prior to leaving" or some language like that.

That's my 2 cents, at least.

Good luck!

@Sam Gentile How much of that $500 is going towards CAPEX, vacancy, and repairs? Or is that captured in your expenses?

If you have a $500 gap, I'd save it up until you have a 3-6 month slush fund in your operating expense account. After that, split the difference. Save half for a down payment, put half towards paying down the principal faster.

Just my 2 cents.

@John Warren Thanks for the quick response. The agent I am working with has indicated that she would prefer not to work with him. She has not spoken badly about him (she is pretty professional), but made sure I looked him up. She has dealt with him in the past, and indicated that it was not a positive experience. 

I think there is a deal to be made here, but it might not be worth the stress and time dealing with him. I have looked up the property on the tax assessment website, and he is not the owner (not sure if that helps).

So I have found a couple deals in my market of interest that are at an attractive price point, currently renting for less than the average rental, and have current occupancy. I am still building up my down payment, but would like to close in the next few months. THis would be my first true investment property, as my other two houses have been an owner occupied to rental property purchase.

The problem I am running into is getting more info about the houses and more specificially dealing with the listing agent in general. When I called him to discuss a property he was downright rude and acted like talking to me about the property was offensive. When I mentioned this strange interaction to a real estage agent I was working with, she took a long pause and just told me to give him a Google and look at his reviews. Highlights of that 1.1 star average review profile are phases like "Treats people like garbage," "Rotten human being," and my personal favorite "One of the most despicable human beings I have ever had the displeasure of coming in contact with."

He usually has 1-3 properties up and for sale on the MLS, but he doesn't take care of his properties (according to his reviews) and he is exceptionally difficult to deal with.

Should I move on, or is there a way to go about this without dealing with this individual?

Thanks!

Luke