All Forum Posts by: PJ Booth

I love this! Mid term rental hybrids are definately a real thing, especially if you are near bustling hospitals. I like Option #2 with Option 1's subtitle. You have some great suggestions I like too: Midway Stay: Mastering the 30day stay; Midterm Stays for the Long Haul (tweaked); "Straddling the Fence- Mastering 30 day Stays" with A real estate investor's guide to midterm rentals somewhere smaller; It's not that Short-A RE investor's guide to mastering the medium term rental. I definately want to read this book!

Hi, I've met several investors who always have a home warrenty on their properties as a part of their business model. Even on fresh BRRRRs. They swear by this approach. I have mixed feelings. I bought policies on a few properties and decided after 1-2 years that doing so was a waste. 5 years later one needed new washer, dryer, and furnance that may have been covered had I kept the policy. 

I have bought rehabs from other investors and wished I had something to cover issues discovered later. I bought another property where the water hearter was old. I thought I'd have a few years to save reserves. It died after about 18 months. That was a painful $1600 out of pocket.

I have one success so far. I bought a property from another investor who had a policy that transferred. I kept the policy going because I knew the HVAC system was on its last legs. Seller refused to budge on price. Now, 2 years later, I am replacing the system. The insurace was willing to pay for repairs but with their contribution & mine combined, I was close to the cost of a new one. So, almost $2600 of my new system will be covered and I get to pick my own contractor. Because I've only owned the property for 2 years, this cost would definately have exceeded its reserves. 

Future plan? I'm thinking if I rehab the property and replace the big ticket items, I'll skip the insurance. If I buy a property where the home inspection reveals aged items and I cannot negotiate the price down, I may opt for the insurance for a couple years until the property has some reserves. If a property I've owned a long time has certain items getting up in age and I know something big is gonna go, I will consider starting a policy. Still working through this one...

Hi Dameka! Welcome. I am a buy & hold investor through BRRRRs and turnkey purchases of anything from condos to SFHs. I'm always looking for the right small multiunit. My markets are DC to Baltimore County regions that are pretty much within 45 minutes of I95. I'm connected to a few REIAs and meetups in the area. I'm happy to share information and my network. Would love to chat if I can help you out.

Congratulations for the huge moves you have made so far! You have drilled down your numbers. That knowledge can guide you to your goals. Your plans sound solid to me. If I were you and looking to buying property, a house hack would be my choice for the asset building and tax benefits. A house hack with a high income generating tenant would be best, e.g. STR (for work travelers or vacationers), executive rental, vouchers, etc. Definitely build your own network and real estate ID while you leverage your dad's. You are on your way!

I agree with Adam. No subletting. Any tenant has to sign the lease I approve and abide by my house rules.

Thanks for the input. The different perspectives have provided some clarity. The property will have $800+ after PITI. It's when I subtract 15% rent hold back for vacancy/capX/repairs and PM that there's no $ left. I can likely be less conservative with the repairs and capX initially due to the extent of the renovations. I will hold it, investigate a rate buy down, take the cash out to pay higher interest debt or buy another asset, realize the ongoing tax benefits this one provides, count the wealth building contribution of the asset, and wait. Interest rates will go down one day. Based on this geographical market and RE history, the duplex will appreciate and rents will go up over the long term. I'll buckle up and look for the next one! Thanks!!

Hi Everyone, I'd like some input. I have a BRRRR (SFH converted to 2 almost-everything-new units) in DC that has taken a year to renovate. Spring 2021 initial numbers were run expecting 9 months carrying cost, lower rehab cost and lower interest rates at refinance. I've got way more cash in the deal than I had hoped (actual cash and unsecured cash). It looks like I'm gonna get the rent projected which is the highest I can expect for now for a LTR. Over time, the assumption is rents will go up and one day interest rates will go down. Here's the refi question: Would you refinance at 75% LTV to get cash out which will mean a negative cash flow (negative for me means a big bite out of my 15% of rent set aside for vacancy/CapX/repairs) and pay the unsecured debt, OR would you refinance at rate and term which is almost break even income/expenses (for 2022) and pay the unsecured, even higher interest debt out of pocket. My ideal is for each property to cashflow and cover itself but...I have 2 other BRRRRs being refinanced at this same time. One will cashflow at my higher target and the other well above SO, taken together, I have 2 properties to cover this problem one if needed. I don't need my cashflow to live and earn enough W2 to carry a sagging property or 2. Cash reserves are my minimum threshold. What do you think??

Can you split the basement so that the front unit has a private basement and laundry area? Then the other 2 units (which seem to have to access the basement from outside) would share basement space and a second laundry area. It seems that the least number of people sharing the better and 1 set of W/D units for 3 families is likely not enough. Could charge an extra premium for "storage areas" for the shared space if big enough. I agree on not doing coin operated units.

So far, my experience with Fund&Grow has been good!! Bianca has helped me obtain the funding needed for my business. She is knowledgeable and responsive. Why go this route? It is much easier and better success rate faster with reduced damage to your personal credit to have professionals synchronize the application process. The cash transfer fees on the cards are a fact regardless of how acquired. They are avoidable if you charge goods directly (rehab materials, pay contractors, business bills, etc). I tried this on my own too...with a lot of time investment. I'll earn the F&G fees back with my business. I look forward to my next batch! Thank you Fund&Grow!!