All Forum Posts by: Michael J.

@Briana Leigh McLaughlin I second what @Michael J. said, at 20 if you start buying just one multifamily unit every 2 years, you could have 10 doors by the time you're 30 for example, which it could grow much quicker, but that's just an example. And if they're cashflowing just $200 a month (modest) you'd have $2,000 a month coming in each month. And trust me those numbers are on the conservative end, not to mention the tax savings, and the appreciation you'll realize if you implement this strategy

This right here!! Don't sleep on this strategy! If I could go back to 20 and do it I absolutely would!

2 Votes

What is your focus going to be? Working with other investors? first time buyers? Don't be a secret agent. Tell everyone you come in contact with that you are a realtor and can help them buy or sell a home.

1 Vote

with a quitclaim deed there is no guarantee that the grantor is the rightful owner of the property in question. As well, a quitclaim deed does not guarantee that a property is free from title defects such as tax liens or title claims from third parties

0 Votes

Originally posted by @Teddy Shepherd:

Originally posted by @Michael J.:

First off, thank you for your service! Are you only interested in SFH? I would also explore multifamily like duplex and triplex to reduce some of you liability. If you have a SFH and have a vacancy then you are stuck paying the mortgage. If you have a duplex and someone moves out of one side you are still collecting rent from the other side. Are you going to try and self manage it or get a property manager to handle that for you?

Thank you Michael! For my first rental I was leaning toward a SFH because they are a little bit cheaper. I haven't seen to many duplexes available on websites like zillow or realtor in my surrounding area. I planned on self managing the property too.

You would probably need a realtor who can pull those MF listings specifically for you. I'd be happy to connect you to an investor friendly one in your area.

0 Votes

Originally posted by @Naren Gunasekera:

Originally posted by @Michael J.:

Is your family member in need of the money from the sale or would they be open to seller financing it to you? Are you estimating those repairs on your own or have you talked to a contractor? That seems extremely high for someplace you are currently living in.

Thanks for taking a look at my situation. Since they have an existing mortgage, would seller financing work? I was under the impression the house had to be free and clear for that. I haven't really looked at that option.

I have not had a contractor in yet as he just decided to retire but I am reaching out to get someone in for an estimate. The house hasn't been updated at all since around 2000 so it's completely out of date especially when I look at photos of similar sales in the area how their interiors look at. I was quite conservative when it came to estimating labour costs.

It would be what is known as a wrap-around mortgage. The idea is that the new loan, which is for a higher amount than the original mortgage, will "wrap around" the original mortgage. For example, the buyer of a $200,000 home that was seller financed would make payments on that amount to the seller. The seller, who had a $150,000 mortgage on the home before the sale, would continue to make payments on that amount to his original lender. Therefore, the amount the seller receives from the buyer each month would wrap around, or cover, the existing mortgage amount.

1 Vote

buy multifamily (duplex, triplex, quad) live in one unit and rent out the others to cover the mortgage and give you a little money each month.

1 Vote

Have you gotten a quote on how much it would cost to rehab it? Can you take out a HELOC on your primary residence to fix up the other property? What would it rent for in current condition?

0 Votes

Are you buying this or wholesaling? If you have a realtor in the area you have a relationship with, see if they can help you out. Options:

1. Send a lockbox to the house and have the homeowner attach with keys and also send them a list of pictures you want and have them take them for you.

2. find someone in the local facebook groups to be boots on the ground for you and go put up the lockbox and take pictures.

1 Vote

Are you looking for a partner or a private money lender?

0 Votes

Originally posted by @Bruce Woodruff:

Originally posted by @J Hurwitz:

There is definitely some knob and tube wiring - that's noted elsewhere in the inspection report. This house is over 100 years old. However, my understanding is basically all houses in this market are around that age. Is knob and tube wiring common in houses that are that old? Is a rewire required whenever there's knob and tube wiring?

You do NOT want a house with KT. Do a search. It is dangerous and leaves you open to a lot of liability. It is waaaay past it's expected life span. If you can't afford to replace the KT, don't buy the house, it's that bad.

I agree 100% with this statement.

1 Vote

All Forum Posts by: Michael J.

Michael J. has started 5 posts and replied 190 times.

Post: What am I supposed to do now?

Post: Any tips for a new agent?

Post: Quit Claim Deed - should I be worried?

Post: New to Real Estate Investing

Post: House hacking/live in flip purchase question

Post: What am I supposed to do now?

Post: Advice on which way to go, sell or rent.

Post: Collecting the keys remotely

Post: Newbie here with question about how partnering affects my numbers

Post: Question Regarding Inspection Report