All Forum Posts by: Matthew Rutledge

My primary residence could be a good exercise for you. It needs a fair bit of work yet.

Excellent point Zachery Buffin . Tight. Not impossible. Price of entry is just too high for my current ability and comfort. I know there are lots of people making money here.

Thanks Ben! Coincidentally, the market I am targeting is near where my long distance girlfriend lives and I'm there about once a month any way. (And maybe some of those trips can become a tax write off.) I wish I could really afford to go all in around home. But I think I would rather have a half dozen properties cash flowing than one. I sold my last rental just over a year ago. That cash paid for the lawyers during my divorce. (Ha!) I met a guy on my last flight out that does flips and BRRR in that market. He offered to walk me through some things. Sounds like this is really going to happen. I just need to build the team.

Hello all. I figure I should probably reintroduce myself since I've been off the site for so long. I am rebooting my life after a divorce. I am basically starting over with everything. This gives me the freedom (and risk) of investing in properties my way with no one to put their foot down and say no. I have taken out a HELOC against my primary residence and plan to use that to fund the purchase of rental properties. I have been studying up on the BRRRR process for several years now and it's time to step away from the textbook and make something happen. Being based in one of the more insane markets, I am looking in other areas and states. I think I have found my spot and will be doing some on the ground research there in a week or so. I love the BP podcasts and look forward to being involved in the forums again. -Matt

I am a bit shocked to see Colorado on the list of places you are considering. The market here is tight. As I reboot my life I am looking at investing out of state. I have identified a market where I can buy 6+ single family homes for the price of one in CO, and it looks like each should cash flow in the ballpark of $500/month. I know we aren't quite at Bay Area insanity, but numbers like this are just too good to ignore compared to what I see at home. I know there are lots of BP podcasts and posts on the subject. I plan to do a ton of research in the next month...

@J Martin, Thanks a bunch!

The family aspect and history with this place is pretty special.  It was the second cabin on the lake, the first on the Maine side, and I think the other one isn't there anymore, so it is the oldest structure left.  My wife's grandma and grandpa built the road in.  It's named after them.  That same grandpa cleared the lot and used the lumber from the trees to build the cabin.  His hand prints are still visible on some parts.  The interior walls are all wooden partitions and built without nails.  As an investment, I wouldn't touch it.  As an effort to preserve some family history, I'd be a fool not to at least try.

We've got most of the expenses documented.  My father in law has been thinking about this for a while now, and keeping track.  We also have a sort of running list of things that need fixed/addressed.  I think I have the contact info for an estate attorney in Maine.  Not sure if he's the best to speak with, but it's a start. 

I guess I get to spend some time up there in the spring learning about the open/close process.  Hopefully I will be able to meet with some property management folk as well.

I know there are a few who manage vacation rentals.  I'm hoping they can chime in and help me at least build a list of questions to ask.

My father in law owns a cottage on a lake on the Maine/NH border.  Due to where he is in his life, he's done with it (he's healthy enough, just getting sick of dealing with it).  Before the end of 2014 it will be passed on to his son and my wife.  Neither of us lives close enough to effectively manage the place.  My brother in law is in TN.  I'm in CO.  Additionally, neither of us is in a position to use the place more than a few days a year.  

To cottage is *NOT* suitable for year round use.  Seasonal/weekly rentals through the summer (even spring and fall are likely out) are the best bets.

I don't even know what questions to ask or where to start.  And that's part of the problem.

1) Partnership - I know business with family sucks. I think it's worth doing for now. The place is owned free and clear. All we need to cover are expenses and the criminal taxes. The mutual goal is to not loose the property and be able to pass it onto family when we're done. As long as no one loses track of that, I think we'll be fine. I have some experience with an LLC. I think my existing LLC paperwork could be re-used. But I don't know what state to file in. I would assume Maine. What else do I need to know? What else do I need to ask? My existing LLC is a partnership with my wife, and we pretty much act as one. Might a trust be a better way to go? Anyone know if Maine does "quit claim deeds" to make transfer easy?

2)  Vacation rental - Does anyone know anything about the laws/regulations in Maine on the subject?  Currently the place is being rented "under the table" on a weekly basis to friends of the family, but it is loosing money every year.  I know there are places on the NH side that are rented weekly.  I'm assuming we will need a very hands on and very capable property manager.  (Any contacts I should know?)  I assume weekly rentals would give us the best return (assuming vacancies work out) but the security of a seasonal deal is appealing.  I'm looking to VRBO and AirBnB.

3)  What am I forgetting?  What am I missing?  This is no where near my comfort zone and I am afraid that I'm going to miss something big.

Thanks in advance everyone.  We knew this day was coming, but we all assumed we had a few more years. 

-Matt

I've been using Schumacher Acct & Tax service at 1895 South Pearl St.

While not RE specific, many of the staff their have their own holdings and have experience in most of the potential pitfalls.

If you can't find their contact info via conventional means, feel free to send me a message.

-Matt

I like to also add "Have you ever been arrested? Why?"

I found one person who was prone to being arrested a couple times a year, but never convicted. Seriously. Arrested a couple times a year.

Originally posted by @Cameron Norfleet:

• Have you ever been convicted of a crime, other than a traffic violation? explain.

I wrote up my experience with JeffCo tax liens over here:

http://www.biggerpockets.com/forums/70/topics/111623-tax-lien

I'm not sure I can see it as a "full time" investment gig (lots of work, slow return, sometimes no return) but I can see dabbling now and again.

-Matt