All Forum Posts by: Joe White

@Chris K. is a very helpful resource on this and he might add value here. Personally, I rely upon an umbrella insurance policy. I feel that offers me protection and allows me to fully maneuver.

Transferring into an LLC, comes with Transfer Tax, I believe. And that really can be a blow.

Lenders require liquid reserves (like 6 months of mortgage payments) per property; & savings cash is dead money. When you are talking $5-6k per property, this adds up. Presently I am relying on my 401k; which really isn't a bad option; but I'm curious on other opinions.

Feel free to reachout to me by im here. I use many vendors with my clients.

Find a great deal and partner with someone with money. Knock on some doors for a month and you will be off to a great start.

I might spend that time with a few books and the BP Real Estate Podcasts. 3 months dedicated studying, might be the best use of your time. Then I would want to begin joining the inexpensive real estate meetups her in Philadelphia. I love the idea of you offering value to find a mentor; I just think some knowledge will help you find the right connection. 

Eviction specialized attorneys are fairly inexpensive ($500 to $675) range. They can take over most of the brunt of the hassles; but sparing you just one month's vacancy alone can make the expense a good investment.

@Pat Pasquariello My clients buy properties all the time with violations. Its common place, especially with investors.

@Rob Stiefel Sounds like keeping the property makes the most sense. The tax avoidance, the equity advantage you will get and the depreciation long term all point to that. It sounds like you will also cash flow. Basically, you house hacked - you leveraged yourself into an investment property, perhaps with only 3.5% down. That is a good investment. Let us know which way you go!

@Branden Bennett It seems extremely likely that your dad has equity in these properties, and if he does, that is no small investment advantage. So you are far better off than most investors.

You lack knowledge, which can be gained. Certainly that is your 1st step. I would concentrate on the BRRRR Book by @David Green. That would help you use the equity already in the properties so this isnt out of pocket. At this point, I would rely heavily on the one good book rather than many.

Experience would certainly help. You might want to reach out to a property management company. A decent one can help get you on track. I would call many. You want a good one and talking to many would be an education in itself.

Renovations often are a way to force a property to appreciate, above what you owe on (including the cost of reno). Obviously, choose wisely.  Since this is your start, and you feel you aren't handy, nor have you experience working with contractors, it might be smart to get something needing small, easy upgrades, that have huge bang for the buck (painting being the best). Maybe something needed $7k in refreshes? Perhaps, even get a seller's assist at closing for some portion, or all, of that amount?