All Forum Posts by: Nicholas Young

I am in the process of purchasing my first property and I really under-estimated the insurance cost...  I am buying a property for around 150,000 that includes a single family home (very small) and a conversion 4 plex.  The insurance cost came in around $235 per month for insurance that would pay replacement cost OR the agent also offered ACV coverage which I understand to be paid out as the cost of the item at the time for $177 per month.  Is this high?  Any thoughts would be appreciated.....

Was not sure where to post this to so if I am off topic, please let me know :)  The PDF generator is not working.  I either get an error code that asks me to try again later or I get a message that says, "This PDF cannot open".  Is anybody else having issues?  Is there a way to report this to Bigger Pockets?

Looking for my first deal and came across a large house conversion that has 7 units in it.  Total rents come to $2500.00.  After expenses property will cash flow $750 per month.  I have had a lot of people tell me to stay away from conversions as they have bad vacancy rates, do not rent as well as traditional duplexes and are a lot more work than traditional duplexes/triplexes ect....  Anybody here have experience with conversions that can share their experiences?   

@Josh Nix , thanks!  I would be interested in anything you could send my way.  I am looking for my first deal :)  I lived in the Highlands for about 10 years before moving to Columbus.  I see that you sent me a message, I would be happy to continue this conversation!  Thanks!

Looking to make my first purchase, mostly interested in buy and hold, will look at flips as well.  I will also purchase and rehab a rental property.  Is this the best place on bigger pockets to find a wholesaler in Nebraska?

Looking to buy a rough 4 unit house for around 22500 and put 30k - 40k into a rehab leaving 600 per month in cash flow after all is said and done. Can I rehab with renters in place? How do you go about this? What are renters rights in regards to this?

@Allan Rosso , thanks for the advice!  I was hoping to have something to take in with me when speaking to the bank and wanted to make sure I was using the calculator correctly.  Do you take anything in with you when speaking with lenders about the property?  Do you have any advice on what, if anything I should provide to the bank?

Using the BRRR method I am looking to make my first purchase and I found a house divided into 4 units with a total income potential of 1,900 monthly. I am going to have a contractor look at the property but for now am estimating a $30,000 reno with a purchase price of $22,500, after reno value of 70k. Hoping to find a hard money lender that will loan me the repairs (is this possible?) & cost of the home at 12% over 12 months, interest only with 10% down. Here is where I become confused with the calculator - it seems to always assume you are paying the repair costs out of pocket. So, I did the following: 1) entered the initial loan at 47,250. This is house cost + repairs, minus 10% dp. Does this then give me the correct outputs desired? Before I speak with any lenders, I want to make sure I am doing this correctly and understanding the outputs. Here is a link to the report:

https://www.dropbox.com/s/q7h9tpoqwbst70s/Report%2...

If there is a better way to share this link, please let me know.  I appreciate any help!

@Basit Siddiqi

When you took out your loan against your 401k, did you just make sure the property was going to have enough cash flow to pay the bank and the 401k loan?

@cara Lonsdale

Thanks for all your info. We just built our home 2 years ago, I don't think I can convince my wife to move out of it :) If taking out a loan against my 401k is my best option and going the rental route is the way to go - how do you pay back the 401K loan? Do you have to make sure you have enough cash flow from the property to pay on both the 401k loan and the bank loan? I recently have been reading about BRRR's, would that be an option and cash out to pay off the 401K loan so I can continue to purchase properties? I appreciate all help!