All Forum Posts by: Mack Owens

@Christine Tuebner I agree that Bristol is the place to be in SWVA! My wife and I are currently house hacking a duplex in Bristol, VA as we speak! I am familiar with Big Stone Gap as well as the rest of SWVA and would steer you clear of purchasing many more properties in those areas simply due to the quickly declining populations and low economic development going on.

As far as moving forward with BRRRRs in Bristol, I would say your best bet is going to be do some driving for dollars, learning the neighborhoods of Bristol and identifying a few areas that fit your investing criteria based on the amount of money you are looking to spend. Bristol VA/TN is primed for a strong future with the casino as well as other economic development going on in the surrounding areas.

If you are coming into town soon my wife and I would love to get a drink and talk shop if you are interested! Best of luck moving forward!

-Mack Owens

@Greg Powers, @Joe Splitrock 

Thank you both for these responses. I appreciate the time and effort you all have taken to elaborate on this issue, you both have brought up really valuable points that I will use when continuing to weigh this decision. 

Thank you again!!

@Colleen F. , @Todd Rasmussen , @Greg Powers , @Bjorn Ahlblad

Here is what I was able to procure. Would you all mind weighing in whether or not a system this complicated is worth the associated risk? I really do appreciate all the help!!

@Greg Powers Thanks for the response. I will reach out to them and see what the situation would be for replacement and potential costs associated.

@Colleen F. Thank you for your response. I have obtained the plans from the owner and you hit the nail on the head. The system has 2 septic tanks that feed into a pump chamber that then feeds into the distribution box and subsequent lines, it also has an alarm system.

@Todd Rasmussen Thanks for your response. 

So when you mention additional capital expenditures, what percentage increase do you allocate per month for that? I have ran the numbers pretty conservatively to ensure I don't get blindsided and just want to ensure that the increase wouldn't make the deal a no-go from a financial standpoint.

This would be the largest building in my portfolio thus far and just don't want to let undue fear hold me back from taking advantage of a good opportunity. 

As we move forward I will be sure to request the current owner pumping and providing a certified letter that it is in good operating condition. Thanks for that tip!

@Bjorn Ahlblad Thank you for the response. 

And surprisingly the property is on public water, they just did not run the sewer for some reason. I will be sure to have it inspected by a professional. 

Would you allow this to deter you from a property?

Hello BP,

Once again, I need advice. I am currently evaluating 8 units, all in one building and as the title explains, the property is on a septic system.

I am looking for everyones thoughts and advice on whether or not this is an issue or something to be wary of moving forward.

Property details that might be pertinent:

Built in 1974

8 units comprised of all 2 bed 1 bath

Public sewer lines are not available for hook-up

Water is on 2 meters, each supplying 4 units

If there is any other information that I can provide please let me know and I will do my best to get the it in a timely manner.

Thank you for your responses!

@Mike Harris

I am currently house hacking and in a similar situation.

The other unit is about $150 under market value. The tenant has lived there for 5 years, never missed payment etc.

I decided that the best course of action was to let her remain at her current rent and after this first years lease ends I will raise the rent to market value. I felt that was the fair thing to do.

Pedro, 

I have to agree with @Bill O'Donnell

Specifically responding to your concern of tying up your capital while house hacking; while you would be putting that money down initially there is no reason in the future you could not make use of it and recycle those dollars into another property. I believe that the house hack could be your best option especially in a market where rent is so high.

Paul,

Forgive me for my lack of understanding.

Is that passage stating that if I were to obtain a conventional/traditional mortgage and transfer the title to an LLC there would be no review of the loan since I would be in control of the LLC?

And would you have any clarification on "and if the transfer results in a permitted change of occupancy type to an investment property" - What would constitute as a permitted change?

Thank you for the information any further assistance would be appreciated!