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All Forum Posts by: Michael Behr

Michael Behr has started 19 posts and replied 54 times.

Post: How to Start Investing when already using VA loan

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19
Quote from @Sean Hudgins:

I know someone else mentioned house hacking, but it sounds like your family is not going to be down with that strategy... My family is the same way, so I get it.

The next suggestion I go for is a live-in flip. Use your VA loan to get a primary residence that needs some love, find something that requires primarily cosmetic work, get your hands dirty, and make it a gem. The beauty of this is you have a couple of great exit strategies when you're done.

1. Live in it for two years and sell at the end of the two years, freeing up more of your VA eligibility to buy the next one. You also avoid the capital gains tax by living in it for two years. Now you have cash to put down on a rental property conventional loan, and you can go and grab the next live-in flip with the VA loan.

2. after six months to a year, move to the next property, where you can use the remaining balance on your VA eligibility to acquire and rent out the first property. Then rinse and repeat the process until you are out of VA eligibility and refi the first property into a conventional mortgage.

The key here is that you need to add that sweat equity to the properties, providing a cushion for market fluctuations and increasing the rental potential for each home. I will echo the others. You should just get started; don't get into analysis paralysis trying to find the perfect strategy.

The only downside here is that you will be doing a lot of moving, so make sure the family is on board, or else after the second move, you may be spending all your profits on a marriage counselor... just kidding.


I wish I would of know about having 2 VA loans at once.

Post: First Potential Deal Advice

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19

I would be Leary if he is only offering one side. I’m new but don’t think you can buy just one side 

Post: Help me analyze this deal

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19

Good morning,

I found this deal and want your thoughts. I plan to live in one unit rent the 2nd and finish the third unit rehab. Section 8 says the rent is 1992 per month. That was my plan to make it section 8. If I live here for a year or so then move out the cash flow will also go up once I move out. I also think there are a couple more ways to add value (billboard). I plan to make the 3rd unit nice to use a STR or Mid term. I also know that the HVAC systems are probably on their last legs was gonna use that in negotiations. They are going to replace the roof with insurance before closing. I think this has potential. I'm into buy and hold so the negative or break even cash flow for a short period wouldn't bother me. Most of the calculations I run are 15% annual return by year 5. What are your thoughts

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Post: My 1 year FHA restriction is almost up... now what?

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19

Flipping can be a way to gain capital. However buy and hold will be better for the long run. Since you have one room rented why not rent the other as well. Then you could house hack your next property. This will keep more capital in your pocket

Post: Garage conversion at the exes

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19
Quote from @Greg Scott:

That would  sure put a crimp in dating someone new.  "Yes, I live in my ex-wife's garage."


 Yeah it could but I’m not really interested in that at the moment 

Post: Help me analyze this deal

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19
Quote from @Martin DeBono:

This is not a good deal for cash returns. CoC is calculated by taking the annual cash and dividing it by the cash you put in. If you look at the bottom of the report you see the annual cash flow starts at $120 in year 1 and year 10 it is $1839. $1839/$27580 is 6.6%.

Cash on Cash is a %. The 0.44% CoC return that the report shows is just $120/$27580

Depending on your income tax rate, from a CoC you would be better off putting you $27580 in a 4% checking account than doing this deal.

Unless this house is going to appreciate I would not do this deal.

Thanks. It’s near a college and it’s growing. I don’t want to predict appreciation but from my time living here it’s went up and continues to go up

Post: Garage conversion at the exes

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19

Merry Christmas,

I found a property after divorce before learning about real estate. I of course got approved and bought a house for that amount. I have been trying to get an investment property since. My ex wife and I are amicable with 2 kids. She has a 24x48 detached garage I was thinking about converting to live in. This may seem unorthodox. I am currently getting estimates for the conversion. My thought is I can convert this space and be closer to the kids and save more money and use my other property as a rental and have someone paying most of that mortgage. I would pay rent in the new space but should be able to save more until I could househack my next property 

Why are your thoughts on this thinking?

Post: Help me analyze this deal

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19

Hello,

I'm using the rental calculator. I am not seeing CoC returns. I'm wondering if y'all could check my math and let me know if I'm missing anything. If Cash flow and CoC aren't there should I just pass? I'm not as worried about cash flow but would like CoC to be 4-5 for first couple years then jump to 8+ the next few

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Post: Buybox and Thesis Testing

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19

Are you planning to do any househacking? I don’t know the market but from what I seen in Ohio the cash flow is there. I think if you’re looking for bigger unit you may need a high appreciation for equity play. I’m not seeing that in the markets I was searching in Ohio

Post: Looking for 1st deal

Michael BehrPosted
  • New to Real Estate
  • Huntsville Al
  • Posts 55
  • Votes 19

Hello,

I’m looking for my first deal within 100 miles of Huntsville Al. I have a primary residence currently am open to making that a rental also. I want to buy and hold and have enough for about 20-25% of 165-175k for investment down payment. I would like cash flow. If I could find a multifamily to househack that may be a better option for 5%. I’m looking forward to connecting with agents, lenders, wholesalers, and other investors in Alabama