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All Forum Posts by: Michael Whitman

Michael Whitman has started 4 posts and replied 21 times.

Post: What are deal breakers for you in an inspection report?

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15

Hey Brian, congrats on your first duplex, that's awesome!

Here's my take: A 107 year old home is going to have some aging, unless it was fully gutted and refitted.  In my experience, inspections are typically about safety, not whether something is up to code (that's what the town building inspectors are for).  I've worked with a few (even trained briefly as I considered a career change, but didn't make the switch), all of them have said safety was the priority.  Leaks can lead to mold. Outlets may be two pole wiring (wouldn't be unusual in a 107 year old house).  I'd look for signs of arcing around those outlets.

Other things I look for are how is the foundation, cracks in the walls (assuming lath and plaster), condition of the mechanicals, depending on what the house is built on, I may get a radon test done for the air and water (near me there is a lot of ledge, so radon is an issue in most homes).  If it has a basement, I'll look for discoloration in the exterior walls, sometimes you can see if there's been water in the basement (where I live sellers are required to disclose water problems). Use a screwdriver to poke at the sill plate to look for rot or termite damage. What type of plumbing pipe is in the house - galvanized steel corrodes from the outside in, lead pipes may have been common back then. Asbestos insulation around pipes.

I'll try to think of a few more, but those would be the major ones.

Post: Advice on buying my first rental

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15

This is a great post, the feedback here has been awesome!

One of the things that really sticks with me, regardless of local or out of state is whether you want to be a landlord while working full time.  When you get the 2 pm call that the kitchen sink drain is leaking and you are filling a cavity in someone's molar, you can't exactly get up and leave to take care of the sink.  So a local property manager may make sense as well.

Post: Keep the ball rolling

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15

I would be curious what the financing folks in the group would think about @Elizabeth Brown looking at a DSCR loan instead of using her HELOC. Would that be an option in this case if the 4-plex is meeting the requirements?

Elizabeth, I've kicked around the idea of student housing in locations near where my sons are currently going to school.  It depends on the tenants, but I've chatted with some landlords who have had to do extensive repairs when tenants move out...just another thought to consider when looking at student housing.

Post: Sheriff sales - NJ

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15

We were recently on vacation in NJ and kicked the tires on attending a sheriff's sale just to see the experience.  Unfortunately, it was on the Monday after our vacation ended and I couldn't get the extra day off.

Anyone have experience with Sheriff's sales?  Or suggestions on where to get some information on how they work? We're not necessarily exploring it as an acquisition pipeline, but looking to be educated.

Post: New to real estate investing, looking to build connections

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15
Quote from @Jimmy Lieu:
Quote from @Michael Whitman:

Hi all, I've been a fan of BP for a while, more of a lurker than a contributor at the moment, but looking to change that and introduce myself.  I'm 51, been a corporate drone for most of my career, but made a leap of faith about two years ago and launched a small but growing tent and event rental business as a side gig. It's not quite big enough to quit my day job, so I typically handle business on nights and weekends. I viewed it as similar to real estate investing in that if I didn't like I could sell and exit, just with a smaller entry price. 

Now I'm looking at real estate to see how I can build a small portfolio and would love to make some connections here for advice and sounding boards.  In my mind, we've run a few scenarios - primarily airbnb, multi-family, college towns - but really not sure where or how to start.  

It would be great to connect here with a few folks, hear your stories of how you got started, and learn how to take that first step.  Thanks all! Best, Mike


Hi Michael! I started with house hacking when I moved from Portland OR to Columbus OH to start with real estate investing. Then I purchased rentals that are clean BRRRRs and grew my rental portfolio to over seven figures. I chose a market with great macroeconomics with lots of population growth and job growth and where it is landlord-friendly. Happy to connect and answer any questions you may have.


 Hi Jimmy, thanks for the note, I'll definitely send you a connection request. It would be great to hear about your story and the roadmap you used to get to where you are now.  

Post: New to real estate investing, looking to build connections

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15
Quote from @Simon Ashbaugh:

Hey Michael, welcome to BiggerPockets! It's important to identify your investment goals first. Are you primarily seeking passive income, capital appreciation or a combination of both? Once you've determined your objectives, look for markets preferably close to yours with active job growth, population growth and an economy without too much fluctuation. This will give every chance of a stable rental market as well as property appreciation.


 Hi Simon, thanks, I appreciate the insight!  At the moment, it's a combination of passive income and capital appreciation.  Something that throws off some cash flow and will continue to build equity (either through rental or price appreciation).  I like to think I'm numbers savvy, but building a team around me is definitely step 1.  The market around me (Southeast Connecticut) is one of the most expensive places to live in the country.  While that bodes well for opportunities, the out of pocket cost would be excessively high as well. We're most likely looking at multi-family (initially) in lower cost of living regions simply to make it affordable for us to get into the game.  That vision could change, but that's where our heads are at currently.

Post: New to real estate investing, looking to build connections

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15
Quote from @Wale Lawal:

@Michael Whitman

Balancing a job, side hustle, and passion for real estate requires setting investment goals, analyzing local markets, and exploring financing options. Networking with mentors and partners, choosing niches like multi-family properties or Airbnb, and analyzing deals using BiggerPockets calculators can help build a successful portfolio. By taking calculated risks and implementing the right strategy, one can achieve success in real estate.

Good luck!


 Thanks Wale! Agreed and my wife thinks I'm crazy sometimes.  I have to dive into the DP calculators, I've had my spreadsheets from previous looks at real estate, but I'm sure DP is much more robust.  

BP is one of the largest real estate networks I know of, so I'm definitely hoping to connect with a few people who can help mentor and advise.  I'd be happy to connect and hear how you got started, I enjoy these kinds of stories, it builds confidence that I can get there with time!

Post: New to real estate investing, looking to build connections

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15
Quote from @Samuel Diouf:

Welcome to BP Michael! 
I started in real estate after moving from Florida to Ohio, leaving my job, and going all in full time.

Are you looking to be a more hands on investor or for something passive to invest your business profits in?

Thanks Samuel! Probably a little bit of both depending on timing and location.  The area I live in is super expensive so the dollar goes far less around here. More than likely, we would be looking out of state where a good property manager would make the most sense.  

But, for me at the moment, it's building a good team around me to help advise on next steps from sourcing to financing and closing. I think the broader opinion on BP is if the numbers make sense look at the opportunities.  It would be good to understand what other think is a good net operating profit, cap rate, and ROI in today's world which I'm sure can vary by market.

Post: Need Opinions and Advice Please!!!

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15

Hey Joe, One thing to remember with a home inspection is they aren't town inspectors looking to make sure everything is to code.  Home inspectors look for safety.  

If I was evaluating that property, a couple of things would stand out: 

I agree the 5" slab probably isn't sufficient given the potential for freezing and movement under the slab. One of the pics looks like there may be some water erosion from under the slab. It's a bit like a safe harbor statement - just because it hasn't happened, doesn't mean it won't in the future.

Also, the 4x4 supports don't appear to be on cement footings (down to frost depth). They may be pressure treated, but even pressure treated is susceptible to rot over time. 

The cement brick under the house appears to be layers, but not mortared.

The pic that appears to be under the decking, the randomness of the 2x4 would be a question for me.  It looks like they are there to reinforce the decking, but there are no joist hangers or cement footings (down to frost depth).

For me...I would have a structural engineer come out and evaluate the footings of the buildings to ensure it's sound.

Good luck in your search!

Post: Help! Understanding of Co-ownership payment allocation

Michael Whitman
Pro Member
Posted
  • Connecticut
  • Posts 21
  • Votes 15

Tough situation to consider.  Are you both on the loan and title for the house?  How long have the two of you owned the property together?  Walking back an agreement where you split the mortgage 50/50 and he pays utilities may be difficult and could stress the friendship.  If the property has continued to appreciate, perhaps him buying you out at market value makes the most sense, then take the cash and roll into a new property.

It sounds like you would like him to pick up another $500/month (pay you the $1,000/mo rent + pay 50% of the remaining mortgage split).  Maybe a different way to go about it is evaluating the market rate for a rental of that size.  If you could rent it for more than $2,000/mo, then maybe the conversation is we could be getting $x more a month, let's bring the payments to market and then he pays you the difference that way.  It may be a really good deal financially given rental rates to just continue the 50/50 split as is.