All Forum Posts by: Ned Carey

@Tajana Reagan welcome to BP I see this is your first post. 

A lot goes into evaluating a deal. Keep in mind that a "house hack" probably won't make you positive cash flow. It will lower your cost of housing and you can save and invest that money for the future. It is also an affordable way to get into real estate. You will be building equity and wealth that will pay off in time. 

There are many posts her on how to evaluate deals. keep searching, reading and listening here and it will start to become more clear. 

@David Fern You wrote "I’m all in $200k- rents @ $1,450/mo."

Right off the bat that does not meet the 1% rule. I wouldn't have touched this deal. That said if you are into it for $200k and it is worth $275k Then you have added $75k to your net worth. That is a phenomenal return. 

To expect to get great returns in cash flow in the short run in real estate is unrealistic. That may have happened when rates were 4% and prices hadn't risen yet but that is an anomaly. You may not see those kind of conditions again in your lifetime. Real estate is a long term game to grow your wealth. 

@Juan Andres Rodriguez I see it is your first post - Welcome to BP

I don't know what to say other than talk to contractors and get estimates and run the numbers to see if it makes sense. Also make sure zoning allows a second apartment. 

There is a lot here written about house hacking so try doing a search and i bet there are some books under the store tab regarding house hacking

@Miguel Alvarez I see it is your first post so welcome to BP.

I would seriously consider selling and taking a loss if necessary. Why spend time and money fixing a bad deal why not start fresh with a new good deal? 

Welcome to BP @Adnan Mujkic Your background should give you a head start.

Based on what you wrote, the seller is in default. Normally you should get any Earnest money deposit back but what does the rest of the contract say, specifically any defaults and remedies clause. I would start by just asking the holder of the EMD for your money back and tell the seller the deal is off. If that doesn't work then time to get a lawyer involved.

Not meant as legal advice just how I might handle a similar situation. 

I see it is your first post so welcome to BP

If all you said is "I will Rent to you" without more details. you can just say the rent is $1M a month. He or she will probably decline on their own. 

The point is details matter. What was exactly written. The biggest risk is possible fair housing complaint.

Commercial appraisers have subscription data sources the average buyer doesn't have, CoStar for example. They use this data to comp income expenses and cap rates. 

@Maurice Scharf You have me confused. How do you combine 1031 and crowd funding? 

The replacement (purchased0 property must have the same ownership as the relinquished (sold) property. Where doe the crowd funding come in?

@Don Konipol wrote   "you can always do what I as a professional real estate investor, syndicator and fund manager has done - flip a coin."

This is incredibly wise advice. no one can predict the future. If a question is so close there is no clear right answer  then flipping a coin is a totally valid way to decide. Making decisions quickly is sometimes just as important as making the right decision.