All Forum Posts by: Michael Wegner

@Zane Biggs

I second everything @Trevor Carlson said as far as how you should run your numbers.

I would think you could find a deal in your market (especially if going with a 4plex and especially in the next 12-18 months) that will cover all of your monthly expenses and probably pay you a few hundred dollars to live in it.

That being said house hacking is still an incredible tool and just because you don’t cover the full 100% / can’t quite cash flow positive you are still mitigating the vast majority of your families biggest expense while getting into an awesome business, building equity, having a shot at appreciation etc!

Run the numbers both ways and remember good deals are likely coming, good luck to you and your family. Keep us updated!

@Shaun Weekes

Great advice throughout entire thread! - I will also (hopefully) be going through this exact same process in about 18/24 months. Good luck with everything @Edward Eloma . Keep us posted / update us when you go and make it happen!

@Michelle Dong, I do not live in Indy nor do I know the market but I do have just a little general house hacking advice: 

 I just jumped into my first house-hack and after looking at several properties over almost a year long search I decided that I am going to just eat a little bit of cash flow in order to live in a little bit nicer (B-) area. All of my mortgage is still being paid for including property tax, utilities, insurance etc. I am not sure what your current situation is but you may not wan't that extra level of stress that will probably come from living in a rougher area, especially when you are just about to kick off your landlording journey! Doing a complete 180 environment wise might just be a little much - again I can't speak specifically to the Indy market but I am pretty certain living in a C area in Indy vs. west palm beach would be a fairly drastic change. Just something to think about!

As I am sure you have figured out, the C/D properties are definitely going to provide a better opportunity for higher cash flow but at the same time you have to really make sure you are going to be willing to live there and that you are going to be comfortable. And also I don't want to make any "tenant class generalizations" but just remember you are going to be duplex buddies with a C class tenant if you do go chasing that cash flow into a C area.  

Completely up to you obviously and just my two cents - just be safe! Another $150 a month isn't worth you being scared to take the walk from your car into your place every night after work. Hope this helps you - Good luck! 

Lol. Thanks.
 

Fellow Bper's, I am bumping this thread because I am trying to figure out whether or not to open up a separate bank account for my first property. I also need to figure out the LLC vs. no LLC dilema but thats a whole different story/thread.

Do you have separate bank accounts for each individual property? If so is it smart to open up another account with a bank that you already use or would it be advantageous to use this as an opportunity to build a relationship with another bank/possible future lender? Thanks in advance for any advice, I appreciate it. 

Any other thoughts on this guys? Do most people just stick with super simple bushes? I have decided I will not be asking my tenants to take care of the yard (per the existing lease they are being asked to do so.. they are nice people but as you can see they haven’t exactly been keeping up with it. I will likely go with a landscaping company but if its too expensive I may try to swing it. I know we are investors and not landscapers but I can’t help but take a little pride in my property. Anyone know ballpark numbers regarding what a little concrete side walk to my back units would cost me? I will get bids but just wondering your thoughts. Thanks again for the advice - probably just over thinking this! 

@Ellie Narie

Great question! Not trying to Hi-jack your thread but I also would love to hear what the next step would be? I also used an FHA loan on my current 4plex and I am hoping to invest in another 4 plex in the near future but do not want to put 20% down if I can help it. Thanks for asking Ellie and thanks to anyone for any advice for us!

@Katarina Schuette Thanks for your thoughts. I definitely feel like a few bushes especially in the middle portion would go a long way even if weren't all that impressive. I have been thinking about side walks/paths to the other units, I think that's a great idea. I will have to look into how much it would cost - Appreciate the advice! 

@Colleen F. Thank you, I appreciate the response! I will definitely reach out to a few landscaping companies to see if they do work for investment properties.. I have seen quite a few properties (2-4units) that have literally zero effort put in and then I have seen a few others that almost seem like they would be impossible to maintain... trying to find a little balance between the two. Thanks again for your advice! 

Hi guys so I was fortunate enough to close on my first investment property on Monday! It kind of looks like a duplex but it is infact a very small 4 plex with very small units (not for long though because I will be opening up the floor plans:D). 

I understand that if you are investing in SFR's then you would then expect the tenant to take care of the lawn as best as they could/maintain any landscaping you may have already put in and obviously if you are talking 8, 24, and above etc. then i am aware you should probably outsource it to professionals.

My question is for anyone but especially for those of you who own 4 plexes and duplexes. Do you still try to add a little bit of landscaping? Maybe just some hearty bushes or something that doesn't need a ton of maintenance?  Do you ask them to help out with it or do you come by and do it yourself? hire it out? What do you advise? 

I am looking for ideas on how to spruce up the place/give the properties' curb appeal a little boost without breaking the bank. Besides painting the doors the same colors (LOL) what do you recommend? I also hate seeing into the tops of the windows/the blinds... Anything I should attempt to do about all the cracks in the sidewalk? The grass? add a fence?? - I also own the lot next door (to the right) but I am not certain as to what I am going to do with it yet, might sell it might hold it (improving area).

Ps. None are the cracks are actually a problem per inspector and engineer but ya.. it doesn't look great. Thank you all a ton in advance for any advice - I appreciate it!