All Forum Posts by: Mark Millich

My business partner and I purchased a property in cash recently and are just about to finish up the rehab work. The house is a buy and hold property that we plan on renting out here very soon. Because we didn't finance the house, we don't currently have homeowners insurance. Seems like an obvious question, but do people still maintain home owners insurance even after their home is paid off/purchased in cash?

My business partner and I purchased a property in cash recently and are just about to finish up the rehab work. The house is a buy and hold property that we plan on renting out here very soon. Because we didn't finance the house, we don't currently have homeowners insurance. Seems like an obvious question, but do people still maintain home owners insurance even after their home is paid off/purchased in cash?

I potentially have the opportunity to buy a package deal of two properties in a very low-end area (Class D – potentially lower).

Here’s the information:

Purchase Price - $50,000

The properties are on two separate streets and have long term tenants. They’re also considered Section 8 housing and the owner is only responsible for water. The first property is currently being rented out for around $840 and the second for $565, with a total gross income of about $17,000 a year. The properties are free of any tax liens as well and are surprisingly clean on the inside – the current tenants clearly do well with taking care of them. The one currently has new updates on the roof, electrical and HVAC as well. The issue lies in the area, however. The are is very crime ridden, with vandalism and theft being some of the common crimes. The properties are also surrounded by abandoned buildings. Being a new investor and this potentially being my first investment, I’m obviously very hesitant. I’ve heard horror stories about people investing in areas like this. On the flip side, I’ve heard of people having great success as the cash flow in these areas can be very high. I obviously wouldn’t be looking at much appreciation. In addition, it would be an out of state investment, so I would utilize property management.

Several of my immediate and obvious concerns:

• Crime – vandalism/theft
• Current tenants are good, but finding quality tenants if they decide to leave may be extremely difficult
• Lack of appreciation

I’ve been exploring the idea of property investments for about a year now. I’m ready to just bite the bullet and buy a property at this point. This seems to be one of the better deals I’ve found it terms of cash flow.

Any feedback on investing in Class D (or lower) neighborhoods would great.

I'm currently looking at a package deal of two properties in a Class D neighborhood for $50,000. Because they're not on the same deed, I'm having trouble finding a lender that will finance them. I've been given information for one lender that could potentially give me a portfolio loan. Can anyone give me any feedback on them and the pros and cons of this type of loan and any experience they've had with them?

Thanks!

Currently looking to house hack in Richmond/Fredericksburg, VA. The properties I've been finding, however, are either out of my price range or are in high crime areas. The goal with house hacking is to live for free, so you need to make sure you can charge enough rent in the other unit(s) to offset the mortgage. I found a beautiful duplex that was priced at $280,000 with the one side being rented out for $900 a month. The estimated mortgage costs would have been around $1630 though, so I ultimately still would've still been paying over $700 a month. Definitely not bad, but I'd like to keep the mortgage costs under $300 if I can with the ultimate goal of having the rent cover the entire mortgage. I'm now considering pursuing a single-family home and potentially renting out several rooms in the property in order to house hack. I would like some feedback on this if anyone has tried this?

Should I just settle for a single-family home to house hack or continue looking for a multi-unit property? The pro with a duplex is the fact that you have your own space. Again, the issue is the just price for these types of properties are very high or in crime ridden areas. Any feedback or opinions would be appreciated.

Thank you!

Currently looking to house hack in Richmond/Fredericksburg, VA. The properties I've been finding, however, are either out of my price range or are in high crime areas. The goal with house hacking is to live for free, so you need to make sure you can charge enough rent in the other unit(s) to offset the mortgage. I found a beautiful duplex that was priced at $280,000 with the one side being rented out for $900 a month. The estimated mortgage costs would have been around $1630 though, so I ultimately still would've still been paying over $700 a month. Definitely not bad, but I'd like to keep the mortgage costs under $300 if I can with the ultimate goal of having the rent cover the entire mortgage. I'm now considering pursuing a single-family home and potentially renting out several rooms in the property in order to house hack. I would like some feedback on this if anyone has tried this?

Should I just settle for a single-family home to house hack or continue looking for a multi-unit property? The pro with a duplex is the fact that you have your own space. Again, the issue is the just price for these types of properties are very high or in crime ridden areas. Any feedback or opinions would be appreciated.

Thank you!

I'm getting ready to relocate to the Richmond, VA area within the next month. Would Richmond be a good area to house hack in and can anyone give me any specifics about the housing market? All feedback is appreciated!

@Brandon Nicholls @Brandon Roof Thank you to you both. This is great feedback!

I'm going back and forth on either using a conventional bank loan or saving enough capital to eventually buy a property in cash (and hopefully utilizing the BRRRR Method). I understand there are benefits to both. What would people recommend and why?

@Harjeet Bhatti @Chris Mason Thank you to you both for the information.