All Forum Posts by: Ryan O'Leary

@Rich Jenkins thanks brother! Update on next/2nd purchase... my dad is buying out his sister and brother for the sole ownership of my grandparents house in Worcester county. House appraised at 240k, my dad will buy it in March for 160k (having 80k equity in the house) and I'll buy it off him with an LLC I've been trying to form, sometime in August so that I'll have complete ownership of the property (dad would still get 80k should I sell the property down the road or if he ever wants some of his inheritance).

Over time as the loan is paid down, I look to take a cash out refinance (small portion to make renting the SFH still profitable and cash flow) and reinvest in multi family in Worcester by 2021-22.

The 3rd property may change depending on where I go for my next duty location in May 2021... but I’m looking forward to the rehab process and everything about the next purchase. It has been rented out (under market value) for the last 12 years and the tenants want to stay, especially with our great school system.

Thanks again man for reaching out and I’ll be sure to hit you up when I’m back

@Paul Ireland I would do the same man. I have enough issues paying a little over that for an HOA in Hawaii. Really trying not to get into another one while trying to invest in worcester.. absolutely kills any ounce of cash flow. Thinking about multifamily with 2-4 doors this year. I'll post financials once things start happening this summer!

@Guifre Mora sorry about that.. it is owned by the 3 siblings free and clear. I will look into what’s available in the next few months for a new loan. Thank you! 

Good afternoon everyone,

I’m looking to purchase my grandparents’ single family home by May 2020. When they passed away, the three siblings split it 3 ways. It was just assessed for $240k.

This house has been rented out for the last 12 years under market value. My parents are looking to buy out the other two beneficiaries and take a little of their portion out as well.

So rather than go for a $160k loan, they'll look for $180k (to get $20k in cash) and have $60k of equity still in the house. The goal is to transfer the house to my LLC once it is created this May.

Am I able to assume this loan under their current conditions and interest rate, or do they have to sell me the property and I have to go through the process of another loan? I’m thinking there would be a title exchange and my parents’ $180k of debt would be transferred to my name, with me taking over their current payments, etc.

Once I sell the house down the road, they would get the remainder of their $80k inheritance ($60k left..) and I would get the increased appreciation in equity.

I currently own a home in Hawaii and will look to create an LLC in my home state of MA, which is where I want to expand my business. With strong rental history and good credit, I would love to know what options I have with this kind of financing.

Thank you BP and I look forward to hearing from you.

- Ryan

@Lane Kawaoka I definitely want to buy more properties, and they will definitely be on the mainland. I’m tracking on the 1% rule and will aim to make that the minimum standard with these properties. Thanks for reaching out man!

@Duc Ong

I want to build the long-term wealth but am still juggling the pros and cons of keeping this property. I’ll head to a Honolulu meetup once I get back from deployment and meet you all! Thank you as well for reaching out.

Good morning everyone,

Currently I house hack in Hawaii while stationed there. I’m on my second round tenants on a 12-month lease, and I leave there in May 2021.

Recently, I saw my HOA went up again another $10/mo, totaling $617/month. This includes exterior landscape, management, community pool services, and trash/water. With the second HOA that's quarterly, the monthly totals for HOAs is about $650.

I’m in the process of refinancing the house in order to make renting the condo out easier for when I leave. I also paid my car off over 15 months in order to break even on any money leftover that the rent can’t cover.

With houses appreciation continuously over the last 30 years, and the increased construction while simultaneously running out of land to build on, does it make sense to hold onto the property every year (while losing potentially 5k/year to break even and for rental income GET tax) and bank on appreciation? The HOA seems like it will keep going up, and surrounding communities are nowhere near the $650/month. I think the amount is insane... but if I sell when I leave in May 2021, I wouldn't be making any money in the deal and could potentially lose money.

My vision on it... hold onto it for about 7-10 years, see where the market is and how much the house would be worth, how much equity I have in the house, and either 1035 exchange it into multifamily properties or keep renting it out.

However, over the span of those 7-10 years, that's potentially $35-50k that could be used to build my portfolio or pay down other properties. I could sell it after maybe 5-6 years, 1035 into a multifamily, and then purchase another with the renewed VA loan availability.

I understand not to bank on appreciation, with this property being the only property I’d be doing that with. All other future properties, one of which I’m working on purchasing in May 2020, would be based heavily on cash flow and less focused on appreciation.

Any information is greatly appreciated!

- Ryan

@Chris Martin

Currently being deployed myself, I took steps to make sure my tenants were squared away on any possible scenario I could think of when gone.

I’m stationed in Hawaii and bought my condo in May 2018. I house-hacked and had a young military couple living with me on a 12-month lease through August 2019. Once my deployment was coming to fruition, my roommates at the time were looking to buy a house of their own. We mutually agreed to shorten the lease by 3 months which allowed me to advertise my property and for them to search for their home.

I advertised for an extra $300 in rent to see how it would take and had new renters lined up within 3-4 weeks on a 12-month lease. I didn’t miss a month of extra rental income and the new military couple settled in.

Coincidentally, my new renter got deployed 5 months later to an area near me, with his wife at home taking care of the condo. Knowing he was likely to deploy, we made adjustments to his lease to extend it 15 months so he can get settled and work on finding a new rental or buying a home (HOA doesn't allow 3 vehicles or use of a 3rd parking stall, so once we're all back, we work with management to get extended parking passes until we find a solution/park on the street or they find a new place for rent).

With both renters, I pay $45/month for American home shield, who has been pretty good at covering minor issues that come up. I set up instructions for them to make appointments or service calls, if needed. They get all points of contact in case of emergency. Basically, everything is laid out in front of them and if they still need me for questions, they have my number. I try to preach independence and autonomy with my renters while I’m gone, and I’ve been lucky to have two great renters so far.

So in regards to people deploying, systems need to be in place for the continuity of care of your tenants. For military personnel, you shouldn’t be waiting for orders or an immediate mobilization order to start looking for ways to take care of your properties. Be proactive and think of multiple courses of action for your properties. Not doing this would most likely lead to more vacancies or potential damage to your properties if property management is not taken care of.

Hope this helps and let me know if there are any questions!

- Ryan

@Victor Menasce@Wayne Brooks@Account Closed thank you guys for getting back to me so quick. Just an update, I did have my JAG representative fly over to get my POA signed and had him send it back to the states. I'm not sure if it will make it back to the states because of what's going on in the Middle East.

The consistent fraud makes sense to have a wet signature. Didn’t know how prevalent it was. If anything, I can always try again when I get back to the states. 

Thanks again guys,

Ryan

Good afternoon everyone,

Recently tried to refinance my house in Hawaii while deployed. I bought the house last year using the VA loan, got married in June, and tried to refinance through my lender in Hawaii.

They said I needed a wet signature for the refinance to process, which I think is crazy. I’m sure there are many other people that refinance from long distance, but may use DocuSign to do it? I wasn’t sure if this was what they legally had to do in order to cover themselves, prevent fraud or whatever.

I did not get a general power of attorney for my wife prior to leaving, and she still can’t walk into the lender’s satellite office in San Antonio to fill this refinance paperwork out for me.

Basically just bummed I’m missing out on these rates. Would’ve saved me just under $400/month in mortgage payments, which would’ve offset how much I need to cover for rent/HOAs once I leave. No idea if the rates will stay this low when I get back in the spring, but I just thought it was crazy that I have to get a wet signature in order for this to be finalized.

Any info is greatly appreciated,

Ryan

@Brian J Allen hopefully man! You free Saturday afternoon for coffee? Maybe see that listing?