All Forum Posts by: Rob Haines

Line up a tenant to rent your current house now on a short(er) term basis, like 4-6 months, and if you can get 125% of your PITI payment. Then submit the lease agreement to the lender to show income. This is more likely to work with a portfolio lender, and certainly ask them first.

@Alexander Wardell

>Are you saying there needs to be a specific amount of parking on the property

Yes, a specific amount of parking per unit. Multifamily property zoning requires x parking spaces per unit, your zoning code will specify how many. Mine is 1.3/unit. A local engineer can help you determine if it's necessary and possible, and design your site plan to allow for the additional parking.

>does street parking count towards the requirements?

That's going to be specific to the local municipality. You'll need to ask the zoning office, but it's doubtful unless that's common in the area.

• Syndications and DSTs may or may not qualify for a condo like-kind exchange, depending on the asset and structure of the exchange.
• If it were me, a small MF is exactly what I would purchase next, depending on the amount of the proceeds
• I would also get an agent to find the next deal for you, one that works with investors and can simply bring you properties that meet the 1031 and your criteria. I wouldn't normally recommend this, but it's worth the money in this case.
• Main advice: don't worry too much about it. If you don't find a property in time, the exchange just fails and you simply pay the taxes. Not ideal but not the end of the world. Don't step over dollars for nickels; you are still getting a return.

Any insight

• All you're really doing is adding living space, just like a garage conversion or garage apartment.
• Fundamentally this is prepositioning project, and is a solid strategy. The conversion from resi to comm + the added income could drive up the value dramatically.
• Your only real hurdles (in terms of proceeding with production) are zoning and permitting. Clear both of them and you're good to go.
• As far as zoning, you'll need to confirm required parking per unit based on available land. It's possible you may not have the land to meet the parking requirement for more units.
• It's also a solid plan because you can finance under residential and get the better terms. Better yet, live in it and finance as primary, then proceed with the reposition.

You could be sitting on a gold mine.

How easy it is depends entirely on the municipality. It could as simple as an application and survey, or it could be a 3 year process with enough bureaucracy and paperwork to make congress look like kindergarten.

Wrong? Not at all... in fact it was our whole business model during the last construction craze. We bought 6 new builder closeouts in family friendly areas, under warranty, and rented them for a decade on 15 year fixed notes. Financing was easy because the builders will bend over backwards to finance you if you are a solid buyer with good credit. Find good tenants and structure your lease properly and they'll never call you, they'll never need to because everything is brand new. We sold our whole portfolio after 10 years and are now investing in multifamily.

As long as your numbers work it's a perfectly reasonable strategy.

I'm building a new home that we'll house hack with a garage apartment. The home will have a pool and is lake front. Do I need any special homeowners insurance to cover the tenant if anything happens to them with water sports or otherwise?

List the potential downsides; what's potentially harder than it seems, unexpected, costly or problematic.

If it were illegal to sell marketed leads, every SEM, billboard and Yellow Pages firm in the country would be breaking the law.

In the case you described you are only being paid to advertise, send leads to the seller, and when one of your leads results in a sale you get paid; you are not being paid to draw up contracts and act act a commissioned salesperson with prospective buyers. If you position the agreement as purchasing ad labor, likely yes you can advertise it legally as a sole proprietor. Essentially you are simply a freelance marketer.