All Forum Posts by: Max Ferguson

Hey John, 

Happy to hop on a call to learn more about the situation. No one could really tell you without more information on the situation. I'm curious about: 
-condition of property?

-what area it is in? 

-any room for a third detached unit (adu) or AFS? 

-Push up value somehow and refi? 

-rent by the room possible? 

Happy to help however I can. Feel free to call/text whenever.

Just want to say thanks to everyone in this thread. 

Considering buying a property with (what seems to be) a well put together yet unpermitted ADU. I've called regional and asked around, for Colorado, they may have to take off all drywall to check the electrical was run correctly. That was the worst of what I heard. There are various other items that may come up such as: Proper firewall suppression, adequate entrances/exits for fire safety, stair safety, size of kitchen appliances, etc... for my specific example.

The house is definitely on discount because of it, almost worth it to go through the trouble if the number makes sense. 

Good luck and let us know what you figure out!

Can't imagine how it would cost 6k for only 4 rentals unless you have other businesses, and each one is in a different LLC...but also not sure.

This is such a personal question no one can really answer it for you, call around to your local CPA's and compare. But yeah, sounds high. 

Idealizing a past scenario is purely negative. Maybe there is something to learn, but most of the time it just makes you feel bad. 

Everyone does it differently and you can't feel bad about it! Just as much as you compare yourself to others that got lucky (literally, they could have lost their butts too) with better investments/markets, you also need to consider the folks that never invested, live paycheck to paycheck, etc...

Markets that got away for me: Frisco/breckenridge/summit county (Never could have bought there anyway, just hurts I probably won't be able to)

Denver/Co springs: Own one here, but from 2018-2022 a lot of values doubled, I purchased january 2022. While it is an amazing investment, we got really lucky to snag one of the last viable duplexes

Omaha, NE: Went to college here. left in December 2020, wish I would've bought a duplex before they pushed up 100-200k on average. 

Tampa is another one but I was never really close to being able to touch anything there before huge appreciation. 

We will find others! And some markets that were overinflated will fall as well! 

@Miller McSwain is a great resource for the topic, he would be happy to talk to you! I know he has gotten creative on the lending side for products used to get the properties. 

I have no clue on insurance, but appraisers should treat the property different if you plan to add a few more rooms. As you know bedrooms are worth more to appraisers than an extra living room. Calling the appraiser to see what you can do to push it up a "C-Level" would be smart before doing any reno also, might only need a few things to make it far more valuable in the eyes of the bank.

I've heard of a tactic for figuring out demand, which is to put up a dummy or coming soon listing on facebook marketplace and see the amount of activity you get on it. 

Good luck and keep us updated!

hmm, I definitely would like a video tour when booking air bnbs. Sounds like something they should implement, maybe security reasons don't allow it? 

I think youtube would be the simplest way to do it, and you can send a link to them however they prefer. 

Outside of this, I am curious how Omaha Air bnb's stack up? My wife and I always have our eyes open for stuff there, but looks like most duplexes (what we've focused on) are horribly overpriced. Heard of a few folks that "make their mortgage for the year" by renting out their downtown condos on Air bnb. This is a few years back, so guessing this may not be possible, but we would love a small house/condo to toss on air bnb if the numbers work!

We would love an air bnb there to visit family and friends though! 

Yeah, please send over the properties! 

DM or [email protected] works as well. Thanks!

Tough situation man. But yeah, essentially what others have said above. One party can buy the other out, refi, or sell. 

Is the 2.7% an FHA by chance? My only possible out would be to offer the home as an fha assumable loan, that would help sell it.

Could also rent it out, controlled by an agreed upon third party that distributes equal pay to each party, and hopefully could also pay the mortgage out of rental proceeds so neither of you are on the hook. There is a ton of liability still with that option. 

Let us know what you figure out, sorry to hear :(

Hey Arman,

Yep, ask your agent first. Finding a random one online is going to be more hassle than it is worth. Sure there is a very small chance that something will go wrong, but with the tightening rental laws spending a little on a proper lease is smart. There have been multiple revisions this YEAR alone for state regulations that most leases online will not have updates on. 

I think the easy button here is to buy the biggerpockets one, but double check if it is up to date on the most recent changes. For further reassurance, you could take their lease to a real estate lawyer and ask them to review it.

Lastly, If you have any friends in the property management space, maybe you could buy their leases as well. 

Thanks for the reminder Janet! Did both of mine in less than 10 minutes. Go do this folks!!!