All Forum Posts by: Randall Brooks

I am NOT trying to sell anything, just using this community as advise to see if this is a good business plan.

So a quick background on me, Before I read Rich Dad Poor Dad I was a cable guy and still am while I am house-hacking. I wanted to ask some apartment owners if they see value in adding bulk cable tv and internet services to an entire complex. In my current W2 job I have seen that apartment complexes can have negative experiences with cable companies, whether its dishes mounted all over the place or cable line wrapped around buildings. I would bet there are apartment complexes that need a solution.

What is the solution?  Find a telecommunications company that will sign a contract to provide services to the apartment complex for a bulk rate per unit. That contract could keep accountability on the telecom to limit them throwing dishes up everywhere and cable line. It would also allow the apartment complex to PROFIT off of these services. Lets say this company charges $10-40 unit/per month for cable and internet to the apartment complex, while the complex includes these services in the tenants rent for $40-80/month. This would allow the complex to have an additional stream on income. I have a great background in these networks and am wondering if it is something that there is a large market for in our community. 

What are you thoughts? What would you like to see better from you cable providers? Anything helps!

Hello Everyone!

I just purchased my first property with a 30/yr FHA Loan. A little back story, It is a 4br/2ba tri-level house. We can rent it in the current condition for $900/month. We are in a college town, walking distance to the college so we are wanting to convert it into a 3br/2ba and have a student rental 1br/1ba. We would do a small renovation which would include; seperating power/AC for units, redo flooring and paint, add kitchen downstairs, removing a stair case, ect. We would be house hacking this living in the upstairs 3br/2ba while getting the student rental ready.

Whats my problem?? Well we purchased the house for $120k and seller paid all closing. Loan value will be $117k at closing. The property appraised for $131k. $14k in equity.. cool! But I am considering going 30/yr Conv. ($618/mth) or 15/yr Conv. ($895/mth) now that we bought at a good price. After speaking with a banker, I would have to pay down 20% of the appraisal price to refi and not have the PMI.

My current payment is $801 with FHA 30/yr. If I come up with $12,200 is it in my best interest to refinance? My cashflow after reno. will be $800/mth without refinance. So if i wanted to pay off $12k and lose $100 a month I could cut the loan in half. OR I could be extremely happy with the fact the I have only $4200 in a property and it will cashflow $800/mth.

What are your thoughts, again this is my first purchase and I may be over-thinking everything! 

Hey Terra,

We just purchased a house in the Jacksonville (college town) area north of those locations. Whats up? 

256-516-2013

Quick Wholesale. $17,000obo.

One unit minor repairs to be rented. Other unit is already gutted for you! 

.8 Miles from a college. 

First come. First serve.

@Nicholas Armstrong, You are in this area I think, Any input?

So I've been talking to a lender for awhile trying to get my ducks in a row. And my lender pretty much informed me not to look into duplex and quads that I wouldn't have success going the FHA or Fannie Mae conventional strategy until after owning a single family home for several years.. I've never heard this on the BP community so if you can give me some advice or good lenders that work with duplex and quads. Thanks! Happy Investing!!

Hey Ben,

I am a upcoming investor in the Birmingham area. Hope you don't mind if I leach off this post for hopes in finding a good GC! =) 

Hey Greg,,

Sounds like you live in a huge buyers market! Ask yourself, "If I was wanting to spend my money wisely and buy land, What would I offer for this property?" Myself personally I would offer 80% as well.. Just because nothing is selling and I want to buy, so i have the advantage...

That being said if I was in your shoes.. Maybe personally invite the person you gave you the offer to discuss terms and negotiate? Ask them if they would like to view the property together? Mention you have had the property for several years and you would had to give it away. Then start negotiating. The potential buyer may love your property but just trying to get a good deal.

Doing nothing or saying no.. May not be the smartest decision. I would be grateful for an offer in your shoes and negotiate. 

Hope I helped! Thanks! 

Hello Allison! Congrats on making the first post and welcome!!! 

So... Like all business decisions it's all about the Pros and Cons. If I was in your shoes I would ask myself these questions..

What is your end goal? 3..? 4...? 15 Properties? You don't want the final stages of life to feel like a rat race trying to build an empire the last minute.. So, Will NOT selling the house now prevent me from buying a investment property in the future?  Could I be maxed on Debt to Income already? Or too close to prevent another purchase?

You stated that your long term goal is to invest in the Grand Rapids area.. Are you content with having a home 3 hours away? What if a pipe breaks? Tenants trash something? Can you find an A+ property management (PM) company to assist if your life gets too busy?

I would try to limit as many risks... If I find an A+ PM company to assist me that is thorough and meets my needs.. then build that equity and set a goal of when you would like to sell. (If your long term goal is to invest in the Grand Rapids area)

Also... lets say 5 years down the road you need to sell that property.. Do you think you can sell it with tenants living there? If not, Can you afford the Mortgage plus your Rent for a few months? (Limit those risks!)

I hope I helped, Good Luck!!!

Thanks for the advice @Nicholas Armstrong! I have been watching the Anniston/Oxford market for some time. I am in Jacksonville/Anniston quite often maybe we could sit down one day! 

@Michael Noto RTR!