All Forum Posts by: Jeremy Karja

Great points by all, thank you.  Neil that makes sense, I was hoping they sell at a discount ahead of the forced appreciation but have not looked into turnkey much so thanks for the heads up.  That makes sense that is how they make their money I suppose.  I was hoping they built their costs in the income on the fix and finding the property taking like a wholesale fee.  I wonder if anyone does that?

Hi BP,

Can you BRRRR a turnkey property? At least pull out a majority of your investment? Obviously depends on scenario etc but generally speaking. I know it depends on goals and the goals is keep as much of my capital as I can but also, save some time where I can do more properties faster and turn key may be an option for that. I know smaller returns and more hands in the investment but as we always say in BP, just need to start and get going and I only have 1 other property right now with a very busy life and young kids, sports etc but that is also the reason I need to build it faster as well.

Thanks BP,

Jeremy

Thank you for the responses and good tips.  I agree and did get a great Heloc at the time at 100% a couple years ago.  However, since we live so far from the school especially I don't want the market to fall, then I am locked into this location for 10 years.  So I was hoping to sell while market is high but not locked in for more than a couple years.  Just exploring options at this point though.  Thank you.

Hi BP,

I was toying with the idea of selling my home then renting it from whomever buys it.  What are my options in doing this?  Can I get at least a 1 or 2 year lease to do it?  How would I structure this?  How would I find the buyers to do this?

Here is my reasoning.  I think a correction is coming (not sure when but I would think within 2 years but who knows).  I want to capture my equity I have earned in my home in the last 9 years but I don't want to buy another single family house when the market is so high.  I also would prefer not to rent (but will if I have to) because I have 5 kids and I don't want to move them twice.  The reason I want to move in the first place is it takes me over an hour to get to my work and over 30 minutes to get to my kids school.  That is a combined travel time of over 2 hours for my wife every day and over 2 hours for me the days I go into the office.

Hope that all makes sense, thanks BP!

Jeremy

Also, My wife is a realtor.  I assume that is not an issue to use her to buy it?

Hi BP!

Looking at buying with my IRA, (I am 36). Bottom line is I know I can't really benefit from this in any way shape or form until I am of 59 1/2 (I work in the personal finance arena for my job) .

My question is can my Dad or Brother do the work on my property, they are licensed contractors.  I know I can't rent to immediate family but can immediate family do work on my property?

Thank you!

Jeremy

Thanks everyone for the ideas and tips!  I think it is too messy for a beginner investor or at least some risk there that needs to be accounted for in the transaction.

Hi @Charlie Macpherson,

That is great advice, thank you for the clarification.

This one is not a personal investment, but for some investor clients who are looking to buy some rental properties.  I had not even considered buying one side but could not tell them why other than it sounds messy. 

Thank you!

Hi BP,

If I buy one side of a twin home and the other side is owned by someone else and there is no association.  Who pays for the roof and siding if they need replacing?  Can you insure 50% of a roof and siding or who pays the insurance or rather how?

Thanks!

Jeremy

Hi James,

Thank you for your thoughtful response.  All of it makes sense and is very helpful! 

I think I know the answer but how far do you consider the area to better and attract better tenants?  In my example 5 blocks over is really rough area (I know the area).  My thought are you have to a lot further than 5 blocks (maybe a mile at least without the dark blue section like in my picture) before you start to attract the higher quality.  Do you agree?