All Forum Posts by: Ryan Mancuso

I agree that it would be cheaper and easier (though not fair) to pay it and move on. The title/escrow company is supposed to do some digging into the HOA and the viability of it, as well as the ledner(they really care about how much in reserves an HOA has and if it's looking bleak, they will nto finance the loan).

I have a friend who is the treasurer of a small HOA here in Prescott that had to give a special assessment for raod repaving and the title compnay did not find it. It's part of everyone's job (agent, title company, lender etc) to know to ask these kinds of questions since it is not something you would know to ask. Not that anyone is fully at fault.

I'm so sorry this happened to you.

Steve made some great suggestions, and I'll add another one. I am not a CPA, but 

The Win-Win Wealth Strategy by Tom Wheelwright is a great book that shows you how to lower your taxes. Buying an investment property and doing a cost segregation analysis could save you A LOT of money, and it's detailed in this book. This might be a great time to get into investing to help offset some of those tax liabilities and build for the future. Of course, consult a good local, investor friendly CPA who can go into depth with you about this.

Hi Nevena,

I am in Prescott, not Phoenix, but I have been to a few meetups in Prescott for AZREIA.

If you are in the Phoenix area, it is defintely worth it for the connections alone, not to mention potential deals you could get. https://azreia.org/

Thank you for sharing this! I work in Sedona area as well as the Prescott area and this is helpful for my clients to know!

Hi Kevin,

I agree with Chad. It is hard to know the depth of the remodel and to have a rule of thumb. What level of work will be done.

Also, keep in mind that handymen/contractors/trades tend to make more on a new build, so they will fit in a remodel when they have time and that can mess up cost as well.

As I'm sure you know, areas in the mid-west tend to cash flow well but appreciate poorly, that being said, the cash on cash return seems fantastic and can help you start to build a bigger portfolio.

As other members have pointed out, the desirability of resale (exit strategy) is always something to consider. Is it close by shopping, parks, a noisy street, etc. Make sure to take the long term view when considering the purchase.

Do you live in the area? Do you know it well? You put in their 10% for managment so I'm wondering if you are investing out of state?

Hi Jarret,

That sounds like a great deal! I would ask for the appraisal to make sure and I would work with an agent in your area who is working for YOU (not your friends agent) and will run a comparable analysis in the neighborhood to confirm the deal you are getting.

If that is the case, then YES! House hacking/rent by the room is a great way to go. Make sure to have tenants give deposits and have leases so everything is clear and clean. And if they are students, having a parent as a co-signer would be a grat idea. 

Also, check out what the dorms are renting for per semester at Marshall. Usually they share the room so you can charge almost the same because you can offer a room by itself (although the convenience of being on campus is lost).

Then after a year, refi out, rent out the room you were living in and do it again.

What a great start! 

I think the best way would be to conintue "house-hacking" (with multi-fam or single fam) every year. Buy a new primary residence and rent out units, or stay in it for one year and then turn it into a STR.

That way you keep as much capital back as you can while building your budding real estate portfolio. As you grow, you should consider what the best use of your time is. I know you can save money cleaning/landscaping etc, but if you can use that time at work and make a better return, I would do that and have someone else do that work for you.

As you scale, you need structure in place to make sure it stays solid.

Good luck!

Hi Shikirah, Welcome to the BP community!

Something else to consider when you are using an FHA loan is to find something a little more rural and be able to find or add an ADU (additional dwelling unit) over time. This could become a "duplex" and you can supplement your income by adding this way.

Something else I would look into is some conventional loans will only require you to put 3% down so this might alleviate seller's concerns. I would discuss the options with your lender or even call other lenders to see what the possibilities are. 

Remember: Ask HOW can I get this done, not CAN I get this done. There are creative ways to do it!

Good luck!

Welcome! I know, they don't teach the real life stuff in school. But this will only help you grow your tools that you use to help yourself and your clients!

The seller pays the commission anyway out of their pocket, so that should not be your concern. Regardless of how much money you put down. That is an agreement already made between the listing agent and their client seller!