All Forum Posts by: Matt J.

@Gavin DeHaai you need to take action so the results can speak for themselves. My parents were definitely apprehensive about me buying a rental property when I brought it up to them.

They had heard other people talk about all the issues they had with owning a rental and just wanted me to be safe.

Totally understandable but I knew that I wanted to go ahead and do it anyway based on all I had learned from a mentor and BP.

One day I bought a triplex, told them I did it and they just said they were happy for me. Now I’ve got 4 places and they are proud of me for what I’m doing.

Your folks might not have the same reaction, but you’ve got to do what you think is right and let your actions speak for themselves.

@Russell Brazil very good point!

If someone were to purchase a house that is owned on a contract for deed basis, who would own the deed after closing? For example, one investor buys a property from an owner on contract for deed. That investor turns around and sells it on conventional financing to someone else. In that example, who owns the deed after the conventional purchase happens?

Hey Daniel, 

There were a lot of things working against it so we ended up rescinding our offer. Fortunately, the seller didn't respond for 48 hours which gave me enough time to come to my senses. It was zoned as a duplex, but had never been licensed or operated as one, there was going to be a lot of work to get it up and running as a duplex and your and Joe's points about consistently getting that rent were well-received. It was in Wayzata, so great location, but just too much debt to take on along with moving a family of 4 into a much smaller space than we currently occupy. 

Bachelor of Arts from UM Duluth in Teaching Communication Arts and Literature with a Coaching minor and English minor.

The critical thinking from the analysis of different texts, organizing lesson plans, and experience coaching athletes all somehow helped me in my real estate investing.

Critical thinking for analyzing deals, building out a strategy from the lesson planning and working with agents, contractors and managers from my coaching experience.

@Joe Schmitt

All really valid points Joe! I know we wouldn’t stay for 30 years but could probably hold it as a rental for 30 years having it fully rented out and cash flowing. I think realistically we’d probably stay a year or two, tops and move on to a new place.

It would definitely be a grind getting our house sold, packing up, downsizing and moving but our living expenses go from 2062 a month down to 500 a month.

I think that and owning a property in this area (I could tell you about it offline) are what have me interested in it.

But maybe you’re into something about focusing more on building out strategies more outside of this house hack since it is so labor, time, and cost intensive.

That's exactly what I was thinking today! I always run the numbers using the rental property calculators on here, and after 30 years with 2% appreciation it's projected to be worth $1.087 MM, free and clear... Hard to walk away from that!

Thanks for the tip! I think with the VA, if I transferred it to an LLC it could potentially trigger some sort of due on sale clause since it's owner occupied, but I'm not certain. Fortunately we've got a few cashflowing places about 2 hours north of the Twin Cities in Duluth so we have the track record to get this done. Maybe after a year I could transition it to an LLC, but the financing is so dang cheap that I wouldn't want to move to commercial. 2.375% interest rate!

Thanks Cody!

@Tim Swierczek Me too please :) 

I've already made an offer on this property, but was curious what some others thought about it. 

I'm utilizing a VA loan to do zero down on a $600,000 duplex in one of the wealthiest suburbs of the Twin Cities. Median home price in the area is in the mid $900,000's. I'm fortunate to have a pretty high-paying job which is why we're able to qualify for a loan of this size.

3 bedroom, 2 bathroom units, rent for $2500/month each. 

While living there, we'd be paying about $500 a month with one side rented, which is a lot better than the $2062 we pay on our primary residence we'd be selling to make this happen. Once we moved out, it would be cashflowing about $1300/month, with no money down besides some repairs and closing costs. A cash on cash return of 322% is pretty hard to not want to take a risk on. 

My question is, do you think $600,000 is too much debt to take on, or does the desirable area and high rents make it worthwhile?