All Forum Posts by: Ryan M.

Why not house hack on a 3 or 4 plex, and FHA it if need be? Save your cash.

If you currently reside in a town home/condo/SFH, rent it out and now you have multiple units.

This is your answer right here.  To me, there is no point engaging into the why's of the issue.  If you are a compassionate person, it might convince you to give them "extra time" or convince you next month they have everything in order.

Follow the rules and it will also show your other tenants that you don't mess around - a deal is a deal.  You kept you end of the bargain with a well maintained, safe, and healthy rental, they need to pay on time.  Give an inch, take a mile.

Originally posted by @Nathan Gesner:

She already knows it's a breach of the lease agreement. Talking to her is more likely to exacerbate the issue.

When a tenant starts to struggle, the best thing you can do for all concerned is treat it like a business. Serve written notice as soon as the law/lease allows. Charge the late fee. Start the eviction.

Look at how a late payment is handled by every business: utilities, cell phone, car loan, mortgage, etc. They don't call and ask why the payment is late. They don't listen to sob stories. They don't try reasoning with you or negotiating some kind of plan. They send notice, they charge fees, they take action. They do it professionally, in accordance with the law and the agreement, it's in writing, it's without emotion. That's what most people respect and react to.

It's a risk because most lines of credit are variable rates and likely the rates will be increasing.  Like a previous poster said, it's for short-term loans that can be paid off quickly, generally home repairs or modifications that add value to the property.

With that being said, there are plenty of bigger pockets podcast guests that have gotten their start with unsecured lines of credit.

Ride the lighting if that's your only option, but for me, it would be a last option for me.

@Rebecca McDonald I have not done this personally myself, but what about sweat equity as your payment? Do all the work for no cash and experience, next deal make 5‰, then 10‰ and so on.

Thank @Abel Curiel I appreciate the response.  I am currently getting a BPO on the condo and seeing what it would sell for.

About me:

I own two properties
Live-in GF - Owns one property

Primary: ~500k in equity - Condo (Medford, MA - right outside of Boston)

Investment: Paid off ~250k equity.

When I mentioned this to my real estate mentor (who is also a family member, owns 300+ doors in Cali) he chewed me out in a friendly way.  Said I am INSANE to live there, "SELL SELL SELL YOU, IDIOT! YOU MADE A KILLER DEAL, NOW REAP THE REWARDS!!"

His idea is to sell the place as fast as I can, take the 500k and rent a house and use the cash to buy multifamilies in the area.  Or if the housing market is cooling off, sit in your rental with you 500k and wait until the prices drop.

The market in the area has leveled off - Zillow is showing a -1.5% return for the next 12 months, and my trustworthy realtor agrees - things are cooling off and we have reached the peak of this upswing.  

My options are to scramble and list the condo after Labor Day, (realtor estimated that depending on the asking price it will be under contract within 7-30 days) or wait until Spring and sell then.  He does think the market will be strong come spring, but might now be as strong.

I want to get into real estate multi-family investing. I have a decent amount of cash, but far more in equity. I agree that selling is the right thing to do - while I do love my condo, you can't be emotional, so I am okay with selling.

What have others done in the community?  Should I sell now and scamble, or wait until spring? I'd love to hear your stories/advice/experiences. 

Offer a friend, family member or colleague a % stake if they invest the 10k.  50% of something is better than 100% of nothing.

I know you can get unsecured LOC too. Gonna pay a hefty % rate, but it's money.

https://www.santanderbank.com/...

@Frank Patalano If I had to put money on it, my guess is the deal is going to fall apart.  Just from a manual inspection with my agent, I estimate 20k at least in repairs, that in my opinion are not ticky-tacky (gutters/water management is broken, Not enough support poles in the basement holding up the house, poor installation of a front porch that is putting pressure on the internal brick foundation that is starting to bend in).

My gut feeling is that the seller will be opposed to reducing the price based on conversations with my agent and the seller's agent.

Originally posted by @Frank Patalano:

 What did you end up putting under contract anyway? House hacking something in the Boston Market? Flip?

 I am focused in the Merrimac Valley area of Haverhill, Methuen and Lawrence.   I have a 5-plex that has accepted my offer on Friday, so we have to still do the inspection.   My goal is to have a place purchased by the end of the year.

@James Nix very interesting. Do you think it was a test?

Did she ever explain why she couldn't come up with $18 orginally?

Seems to me not eating out one meal would cover $20, but I also understand everyone's financial situation is different.

When I rent out my house we look for people who's job pays them atleast 2x if not more, of the rent per month so people aren't renting a place ethey can't afford.