All Forum Posts by: Robert Fisher

I had started a video series for beginners that was in about 10-12 parts.  Not sure how I found to start with but now I can't locate it again.  Could anybody kindly point me in the right direction?  Thanks!

Knowing what I know now, I definitely would've house hacked for my first home.  It was just my wife and I, no kids yet, no need for extra space or a yard.  I would've bought something with 2-4 units and let them pay my mortgage while continuing to save for another deal.  Or at minimum, something that could easily transition into something you could Airbnb.  In my area, if the location is right, you can make nearly as much doing that as you can from renting.

Don't get me wrong, having your own place and own yard is great, but the wise decision for the financial future is to sacrifice a little comfort to keep yourself out of debt and picking up your first cash flow property.

TL;DR - What's your opinion on using a HELOC to reno your personal home if you plan to then start using Airbnb?

I've been missing out on a huge market in my area - Airbnb.

I've read on the forums in the past that people seem to not like the idea of using a HELOC on your own home because that's money out of your pocket with no money flowing back to make the payments on the HELOC. I'm assuming that isn't true if your home then starts cash flowing for you, but I wanted to see what BP thought.

The majority of the to-do list would be simple things like changing out closet doors, maybe buying an IKEA armoire or something for guests to use.  However, I'd probably want to add a shower to the basement bathroom as well as a small kitchenette (sink and minifridge, couple cabinets) and additional bedroom down there.  This would allow me to either just Airbnb the 1bedroom basement, stay in the basement while Airbnb-ing the 3bed main level, or rent out the whole place.  

Plumbing is already in the basement, but I'd have to bust out some concrete for drains.  Haven't ran numbers yet, but lets say its in the $15,000 range to do it all.  A friend mine totaled $3,000 in about 7 months this year for a 2 bed, non-renovation house.  I think given our size and location differences, as well as the fact that my place is updated, I could easily double that.  The reno pays for itself in a little over 2 years and I add value to my home when I go to sell.

Apologies for the long post, but am I correct in my thinking?  Am I missing anything?

@Bernard Reisz  Thanks for the heads up.  I'll have to check that out in the future.

@Dmitriy Fomichenko  Thanks for warning.  Must be the reason I've never heard it as a strategy.

The seller ended up accepting an offer and a backup offer before I could even get to see the property so it wasn't meant to be. But the information will always help in the future! I could've just let the IRA have it if the deal was right - I was just (selfishly haha) hoping for was personal cash flow and was wondering if there was split it between the two.

Dear shared wisdom of BP,

I'd obviously like to talk to my attorney and account before I do anything, but I thought I'd ask the question before potentially wasting my time (and money) talking to them.

I'm going to check out a fourplex tomorrow morning but I'm short on resources for a down payment (FHA option is tied up elsewhere). I had an idea that I hadn't thought of, tried before and can't remember hearing if its actually possible/legal or not. I'm wondering if I could "partner" with my own self-directed IRA. Use it for the down payment and split the cash flow with it, potentially transfer ownership later.

Is this possible?

I was going to ask what @Max T. already said.  Why not just let your business own the car?

@Alfred Edmonds

The header was the part I wasn't exactly sure how to do.  Wondering if its best to build a faux wall to support floor joists while you cut the entire concrete wall, top to bottom, then build it all back in 2x6 - or - do you somehow cut out a lintel shape in with the door?  I'm a home designer, not a home builder, so I know how to organize spaces but not always how to pull it off haha.  I've worked with contractors enough to be dangerous - where I know the basic idea of how to do something, but if I tried it myself I would probably miss a small detail that would ruin everything.  So yeah, I'm smarter than to try something like this on my own haha

@Sam Shueh

Really good point. I wouldn't have thought about it if somebody at my local REIA meeting last night said she was trying to make a single family into a duplex - and actually did all of the work for it (separation walls, separated electric, etc) before she found out her lot was 300sf too small, by code, to do a duplex.... Luckily for her, there was a clause about if not direct neighbors objected, she could proceed anyway.

But yeah, I knew it could be done but I wouldn't dare attempt it myself.  I was just hoping somebody knew a ballpark on price and how intensive the labor would be.

Not sure if this is correct forum to post in so forgive me if I got it wrong.

I'm looking at a property that is begging to be a duplex but lacks a separate entry into the basement that already has a kitchen ready and waiting.  The best way to accomplish this would be to cut an entry door the concrete wall at the back of the house (as the basement currently lacks an entry point).

Has anybody done this before or have any experience with this?  Any help or advice is appreciated.

Thanks!

@Kevin Felmlee  Ideally, I'd like to get there because of the gold mine I'm sitting on, but I don't have the personal funds (or have any investors) at this point to break into the market.