All Forum Posts by: Michael Kiley

I did not partner on my first deal as I knew how to make the repairs necessary to flip it. I imagine that if I didn't have construction skills, I would either take a night class on general construction trades or find someone who was willing to rehab the house in exchange for you putting up the money. Profits are split 50/50. This seems to be a standard model that I've heard others do successfully. Best of Luck!

Sounds risky because you are new to investing and you don't know much about foundations. But with that said, some people can buy these homes and do real well with them. I purchased a house that was in a prime area that nobody wanted because the foundation was literally falling in. After renting a backhoe and digging out around the foundation walls, I was able to push the wall back out, reinforce it with rebar and waterproof it all for 5000. If you are willing to educate yourself on how to do this, then maybe it could be worth it. Best of luck!

@Steven Rubino Wow! That's AMAZING. What a transformation. Well done sir! 

Wealthy to me is creating something of value. When our neighborhoods are deteriorating or just plain unsightly with overgrown weeds, cracked sidewalks and chipping paint, it's deeply satisfying to buy these run down eyesores and turn them into beautiful productive homes that people can be proud to raise their family in. And the crazy thing is, I get paid well to provide this service. But the reality is that even if I had enough money to live for the rest of my life, this is the thing I do that truly makes me happy. The money is great but creating something beautiful that will outlive me and benefit future generations is my definition of wealthy. So to answer your question, I don't believe that being a slum lord makes anyone wealthy.

Michael Kiley

@Andrew Postell Thank you for taking time out of your day to answer my question. 

I need help changing my profile pic, please! 

It can be very hawkward to have a bird on your head. To make matters worse, a friend of mine likes to annoy me with bird puns all day, but I soon realized that toucan play that game. Please help

@Andrew Postell So if I want to BRRRR a 40k house that has an ARV of 100k, I borrow 75k from my LLC, file a mortgage, and I can refinance the 75k mortgage with conventional bank financing once the rehab is completed? But if I buy and rehab the house with my own money and don't file a mortgage, I'll need to wait 6 months to cash out refinance if I don't want to be limited to the lesser of the 2 amounts you mentioned earlier?

I was also wondering, is it beneficial to apply for loans in just my name so it doesn't limit the total number of loans my wife and I can have to 10? (If we both apply separately, we can have up to 20?) Or am I missing something here? Thanks for your reply!

Be up front with your tenants. I respect those who are honest...and after all these years, honesty is still the best policy!

I was gonna post my 2 cents but @Jim K. nailed it. SFH investing is the easiest way to get in to real estate investing. By the time you get one or two under your belt, small MFH would be the next logical step. Just make sure you have enough cash reserves for when it goes vacant or you need to replace the furnace. Best of luck!

I'll do it for free