All Forum Posts by: Nicole A.

@Mallory Guerrero I understand eviction is not fun, but you should not delay. If you just hope the lady moves out, you will lose a lot more money. I bet your area has eviction service companies. Just Google "Detroit Eviction Services" and see what comes up. Call those companies.

You could also offer cash for keys, but don't do this in place of eviction. Do it along with eviction because if she doesn't keep her end of the deal and move out, at least you didn't waste time waiting to find out. You can always cancel the eviction process if she moves out before eviction day.

If you do cash for keys, make sure the document clearly states a deadline to return the keys. It should also say that any left items are considered trash by the tenant. The deadline for her to move out and get the money should be soon...like a week or so from now. Not a month. 

The key is to take action. This is the only real way to minimize your loss.

Thank you. I will have to make a decision before this property opens up to investors. Right now, it's only open to potential primary home buyers.

The market I buy in is increasing. I can't seem to find any BRRR deals that would allow for me to recoup all my cash in the end. Nevermind making any profit cash.

There is a property with a conservative ARV of $148,000. It is a HUD home and they're asking $80K.

The property needs about $40K in renovation (that includes unexpected items).

Closing with HUD and then closing again for the cash-out refi will total around $10K

I can get a cash-out of 80% of the appraised value, but assuming the numbers above, that means, I could only put in an offer of about $70K. And yeah, that's not factoring in holding costs for the 3-5 months it will take to renovate before I can refi (yes I do not have a 6 or 12 month requirement before refi).

How are people doing BRRR or flipping making money in a market like described?

Would you do a BRRR where you're $5K - $10K in after all is said and done?

Part of me says what's the point if I'm not at least recouping *all* my cash. The other part of me says that getting a renovated rental for $5K-$10K is great.

Just ensure you aren't renovating beyond the market so that you make money from these renovations rather than be in the negative. Best of luck!

Wow, @Austin Jacobus, you sound like an amazing, unique person. You are already well ahead of people your age, and heck, most people in general! There's some great advice that's already been said. Save your money. Spend it wisely on fun things. When you turn 18, you'll be offered credit cards, but don't fall into debt like many Americans. If you use it, only spend what you have each month so you can pay it off *fully* each month.

With all the savings you'll have, I would recommend your first step in the future to be to purchase your own property and house-hack it. Even though you'll have lots of savings, I would recommend you not put it all into the house. Only put down what is required (which these days is typically 3-5% of the purchse price *plus* 5% of the purchase price in closing costs). With your housemates/renters, you'll likely not need to pay much out of pocket for your mortgage every month, if anything at all. But if you were in a situation where you had no renters, you could still afford the house alone. That is key.

Keep reading books! Listen to podcasts. Follow like-minded YouTube channels. Don't listen to people who will question you or tease you. You are different than most, and that threatens some people. 

Thanks Andre!

For the PM reports, I have a few examples of other monthly reports to show them. Sometimes, though, it's as simple as needing them to be more consistent with details such as accurately notating which month a rental payment is for when from a late tenant so I can more quickly/easily understand it. Another example is that I'd like them to seperate rental income from court fees reimbursement from tenants. Right now, they just put it all together, and again, it'd just be easier for me to quickly understand if everything was more itemized. I spend too much time trying to fully understand them as is! They've always worked with me very well, so I'm not at a point that I should just look for another PM.

Yes! House hacking is such an amazing tactic to leverage! 

I love diving. I didn't used to. I had a scary incident years ago, but I jumped back in the water and am now more confident and better than ever before. I think that incident actually taught me a bit about myself in stressful situations and how to handle it if it happened again. (I had a situation where I was not getting enough air from my equipment at a deep depth, and it caused my body to hyperventilate, which further didn't help my situation but I obviously made it out fine.)

I really look forward to seeing Alaska this year finally. I also really look forward to going to the island of Utila, Honduras to dive looking for Whale Sharks and help researchers in their studies on these amazing animals.

Happy new year!

Great start! Capex matters because it is savings for big items like new roof or new HVAC system in the future. You treat that as a seperate savings pot of money from typical repairs.

Regarding a LLC, I would say that you will likely be just fine getting an umbrella policy. While I'm not against LLCs, as I have one myself, I do think they are over-hyped. You can still be sued. Many people don't run their LLC correctly and it's easy to "pierce the veil" and sue the individual rather than the LLC. And if you're generally providing safe housing and following local rental laws and requirements and just treating people professionally and fairly, no one is really going to have ground to sue you for anything. You might find yourself dealing with an angry tenant one day who makes the threat, but they usually don't mean it because they know you did nothing wrong. They're just angry at whatever situation.

Once you begin to get several properties that also have a lot of equity, it may be a good time to more seriously consider a LLC. But if there isn't much equity or asset value, then there isn't much to chase after.

To add, if cash is a bit short at this point in time, perhaps look within your own home. Perhaps it would be a perfect house-hacking opportunity!

@Brya Freeland I understand that Russell's advice might not be what you want to hear, but it is good and knowledgable advice...and from someone in the area too. 

BRRR deals typically require that you buy a fixer-upper with cash and then renovate it with even more cash. Some people can get hard-money help, but remember it has high interest rates and tough terms...and you would still need a large chunk of the your own cash. So expect needing more than 20-25% down...expect close to 100%.

While I'm sure it's not *impossible* to find deals in DC, the price-point--even for fixer-uppers--doesn't typically lend itself to cash-flowing rental properties. It will be tough to find.

May I ask why you are doing such a heavy renovation "down to the studs" on a property that I assume must already be in good enough condition to live?