All Forum Posts by: Nate Zachrich

I have a 9 unit portfolio in Deshler, Ohio that I want to find a property manager for. Any help is appreciated.

In many cases charitable contributions can be tax deductible. That being said when you start out money is always short because your cash flow has less sources (your job and your one or two properties), and because your systems are inefficient compared to someone with more experience. I would advise you that while donations are undoubtable a good thing focus on getting your business right first and in the meantime do what you can with no set number. Remember " No one was ever saved by a sinking ship"

I'm just going to ignore the cost of the actual flip its an obvious calculation you need and if your flipping you should already have that one covered. 1) How ARV is calculated in your area. This ones obvious but unfortunately a lot of people don't learn and it burns them. Also, its calculated differently in different areas I would contact an appraiser and find out how its done in your area. 2) Holding costs those insidious costs that will rack up just for the "privilege" of flipping a home. They can sink you because you don't make money until you sell. Some of the major ones are: taxes insurance power water marketing (when you go to sell) HOA fees heat (if not electric) 3)The 70% rule 4) If a property is over 1000 sqft. it can likely fit at least three bedrooms (thank you Brandon Turner. This allows you to look at properties that others may pass up. I hope some of these help and best of luck!

As long as you understand the risks with removing the tenant: Good tenants aren't easy to come by, there are many upcoming legal challenges to short term rentals etc. It is your building and you can do what you wish. The best practice is to just be honest and upfront. I would give them notice as early as possible (I give at least 30 days notice). Also consider paying for their move, for the cost of a U-Haul you can relieve a lot of animosity and make it less likely they will damage/ steal stuff on the way out. Please update us on how this goes.

That's kind of a hard question to answer with out knowing where you want to end up. Are you looking for passive income, to start a full time business, or something else?

My advice is heloc. The reason for this is if you heloc you only have to pay back the money you use, with a refi you are responsible for the entire refi amount which can cause you to be overleveraged especially in light of the current economic situation.

I would use the BRRR especially if you plan to refinance. The reason for this is you will be forcing equity in to the deal and possibly refinancing which follows the general BRRR outline.

In short: no. Long answer: So long as you utilize the 70% rule you should at least be able to pull ALL of your money back out. This makes it superior strategy to buy and hold in terms of scaling your business.

You need an inspection to protect yourself. No inspection no deal!!!

@Marco Guerrero the best thing you can do is go to open houses for properties in your neighborhood and your ARV range that way you can see your competition has and can replicate or improve. Ie if they have granite countertops you should so that you can be competitive.