All Forum Posts by: Nathan Hall

@Christopher Davis what specific market are you looking in? It's ok to say, it's not as if someone is going to steal your deals! :D

I kid somewhat, but honest question. I was raised in the deep SE US so am aware of both the humidity and home prices. Let me walk you through my first deal that I find locally up here in WV, on the MLS, and you (or anyone else for that matter) can tell me if it is bad from your perspective. It worked for me but if be curious for thoughts:

Type: duplex

Purchase Price: $97500

Down Payment: 25%, $24375

Source of Down Payment: 401k loan, 5 years @ 5.5%

Rehab: ~$8,000 out of pocket

Monthly PITI: $680

Rents: unit 1, $800; unit 2, $900

Monthly "Cash Flow": $1,020

The 401k loan hits my paycheck before I see it and I adjusted easily; it's around $300 a pay period I think. Plus that payment and interest goes back into my 401k in its entirety.

@Gerardo Escutia your problem tenant early warning system is working perfectly. This tenant has expectations that aren't easily met. Let them walk when the lease expires, if it gets that far.

@Jonathan Greer stop talking to to them directly. Contact your lawyer. Explain the situation. Order the survey. Send the bills to them. See them in court for damages if the boundaries play out like you suspect.

This isn't a game where only one party has a lawyer.

The other option is to go by, talk to the actual owner, explain your intentions, mention how taken aback you were by the reaction, insinuate you'll be doing/have engaged the above, and wait for this crazy *** dude to be put on the curb with the rest of the garbage.

@Matthew Otto you're 22 and will likely change employers within the next five years. Look at your vestment schedule and if it makes sense, do the maximum matching contribution. When you change employers ask about 401k options such as loans, and/or roll it into a self-directed account that is tax deferred or over into the new employer plan if that makes more sense. Right now I assume your expenses are low and that you're single. Enjoy this time but set yourself a budget. Focus on being the best at what you do in your field and making yourself desirable. Sock away a post-tax fund of cash for when you decide to make your move, then take that next step. Don't deny yourself fun, though. Just budget for it.

There is so much free information available, all it takes is your free time to scoop it up and incorporate it into your life plan.

Also don't get entangled with someone who doesn't share your vision, or who doesn't give your vision credit when you explain it. Be able to explain it; begin with the end in mind is one of my favorite sayings. Have a mutual goal that you share together, it will make things so much better.

@Mike S. I'd just like to say that this has been a very informative thread for me, so thank you. We're on our third multipropery/multifamily deal this year so this ties in directly with she discussions I've had with lenders recently.

I don't know that I have any advice for you specifically that adds to the other suggestions I've seen here, but I do appreciate you wording your concerns so well. It bred good dialogue and definitely gave me some food for thought. Your rates didn't seem crazy to me but I've seen some convincing replies here that show me how to get more with less, maybe. On the other hand, the deals that I've taken to local banks have allowed me inroads and relationships that I might not otherwise have, and definitely need in my environment, if I want to keep down this path.

@Mike Webb thanks! What is the location?

@Daniel Hyman that is great to know, thanks! I admittedly am uninitiated when it comes to bookkeeping software and how it all works.

@Michael Ealy have you had any success in forcing appreciation on 4 unit or less properties? Or is this idea unicorn hunting?

@Alfonso Aramburo Zepeda I'd probably aim for one of the C-class area duplexes, but I might have a higher tolerance for stuff than you. You'd own it, so you'd pick your neighbor, if not the neighborhood, and when you moved you cash flow a lot better. A bit of austerity now could give you a leg up in a couple of years when you expand.

And honestly what is the difference between B- and C class, honestly? Especially when talking about duplexes. Using commercial terms for non-commercial properties conflates things imo.

@Jake Hottenrott great advice, thank you!