All Forum Posts by: Sean Lynch

Thanks everyone, really appreciate the responses here. Huge help.

@Matt Devincenzo For finding a land dev. civil Engineer, any tips on how to vet them/find them? City staff has also been a bit of a dead end for me.Would like someone local and don't think there are too many BP pro's in my area with this expertise (Northern Michigan). Not sure how to go about finding an engineer to help with a project like this.

For the land itself, If all goes well I will own this land outright by the end of the month so I can sit on it until I work out the necessary permits to move forward with the build. I want the land either way so this is going to be an option for a portion of what I'm trying to buy. Will be checking on water (Great tip, didn't think of that). We don't have the same water issues up here as you guys out in the west but going to verify just to be safe. Land zoning looks to check out here so should be good to go there. 

@Julie Nealey - By mixed use development I'm guessing you're referring to having both commercial and residential options added or do you mean long term/short term rentals (or Something else I'm not thinking of)? I would LOVE to tap into the commercial side of things but need to check with the city to see if I can get that approved here. It's going to be a bit on the outskirts of a few popular towns by me so not sure if the location would be great for it but always interested in your ideas/views here. 

@Barry Ruby - Thank you for the offer. I'll definitely reach out to pick your brain here if these next two weeks go well.

Appreciate all the support here everyone, BP Rocks. 

Thanks Matt, This is in Northern Michigan. I'll be reaching out to the local zoning and development agencies to get info on that critieria/Restrictions for subdividing the land. Thank you for that.

Now I would be building this as an association/subdivision so wouldn't look to make these an option for individuals to purchase. Would you expect the process to be similar when it comes to dividing land for sale vs. using the land for multiple rental properties as one development? Just curious.

I am vetting builders now for the project and I'm assuming they will be able to provide a lot of information on the process, but when it comes to general preparation for a project like this, have any other tips you could offer?

Hi,

I am looking into building a multi-family subdivision/association and wondering if anyone here has any experience in larger scale development like this? Currently bidding on land available up to 40 acres and speaking with a number of companies that would help support the building of multi-family properties (Duplexes). Looking at moving forward with a pre-fab multi-family contruction once the right land is acquired.

I wanted to reach out to the BP community to see if anyone has ventured into this type of project? Would love to chat about potential pitfalls and obstacles, processes used, etc...Anything that could help with outlining what to expect.

The land I'm looking to buy will be clear for the most part so I would be able to come in and break up into plots, build main roadway in/out of association, will need utilities added to each unit etc..... Just wanted to see if I could run some ideas by anyone in this community who has explored similar investment options.

These will all be buy and hold multi-family investments that are long term rentals.

Any help or insight is helpful!

@Andrew Postell

Thank you for this. This used to be my primary but have since moved and its a rental now. We Lived in it and renovated it, then we've been renting it out since. So it will be a refinance on an investment property. Appreciate the insight. 

Hoping for some insight here, Looking to refinance for the first time and not sure what to expect. The time frame of 30-45 days seems common but my question is, which lenders should I look for/look out for. Have heard horror stories about rocket mortgage and other online options, and am leaning towards working with one of my local credit union but they don't seem very investor savvy.

Any tips on what I can look for when choosing a lender or any recommendations out there?

It's a single family home on an FHA loan and we want to switch to conventional to eliminate PMI / lower rate and take advantage of of value adjustments overall to get our monthly payment reduced.

Hey BP community, 

Looking for some insight here.

I have one investment property right now and I want to look into using the equity we built up to purchase other properties but have no experience using equity to purchase like this. Considering selling at the right price point as well.

Hoping to get some of your thoughts/insight here. Maybe there is an option we aren't considering? At the end of the day we want to look into leveraging this property for future purchases some how.

A bit about the home. Its 1300 Sq Ft, 3 BR 1 Bath. .25 acre fenced in back yard, detached 1 car garage and in a good location. We purchase the home for 130k in 2018, did some renovations and we are getting $1,300 a month now. Principal is down to 117k @ 4.3% IR. Mortgage Payment is $900 a month.

Right now we are seeing comparable homes sell anywhere from 150-200k+ in the area. I doubt the condition of the home would allow us to get much more than 170k but not sure what to expect in this market. Working with our agent to get a better idea on value there.

Originally we wanted to find a way to utilize the equity for another purchase since we expect a decent increase in value but not sure which direction is the best way to go. We don't particularly want to sell since it's running nicely but if we get close to 200k.... who knows.

Any insight is appreciated.

Thank you,
Sean.

@Dustin Salmon

Good advice from the others here and congrats on reaching FIRE.

The 401(k) route doesn't sound like the best option for you IMO. As long as you have earned income you can open up a ROTH and accomplish what you're looking to do. If you're married, and file a joint tax return, your spouses income counts for you as well. A lot of people go this route to keep contributions up. As long as your MAGI is $193,000 or less you can contribute the max amount, then the limits change above that but it's easy to find those numbers if that's the case.

I agree with Scott, you should be able to convert those assets from TSP. Of course, confirm that with your admin contact but it should be a pretty easy process once your Roth is set up.

Congrats again and good luck!

Hey Welcome to BP,

There are a lot of markets out there and ways to invest -- you'll find the right one for you. Keep going through each option one by one and see what fits best for you. Choose an area you're familiar with so it's easier for you to navigate location options, rental/re-sale value and starting somewhere familiar will just make it easier on you overall. 

When it comes to strategy (Buy/hold, flip etc...) Keep checking in to those podcasts and reading up on what's out there for you and your strategy will start to fall in place. Reach out to people on here who have already done it....This site has helped me out more times than I can remember.

Best advice I can give though for the stage you're at....Don't be afraid to ask questions here and reach out to people on BP, start creating a local network for yourself and continue to build up some resource. Most of all, set your plan and be WILLING to pull the trigger. I'm only on my second investment property so not an expert but most of my knowledge came after I moved forward with that first investment.

The lending process can be a monster but it doesn't have to be intimidating. Happy to talk with you about some options I found out there and strategies I found helpful for that first purchase if you're interested. I know that's a huge hurdle for that first one.

Feel free to reach out.

Good luck!

Sean.

Hi BP,

Messed up on the title,---- Should be *Transitioning out of first Property and into first house hack*.

My brother and I are preparing to get our second property and are worried about the timing of the transition. We currently live in, and are renovating, the first property. We're almost done with that so we are planning for the second. An opportunity came up on a Duplex in our area in a great location and the owner has not listed it yet. They know we still have a month or so before we are planning to buy and are willing to keep it unlisted if we decide to buy. Working out lending details now. We plan on renting our first (Single Family) and one unit in the duplex. Living in the other unit at the duplex.

Hoping some of you can shed some light on when to start looking for tenants for the properties, or any advice/insight you can give on making this transition while reducing the chances of having to pay two mortgages at once. Timing this right is really important for us.

Thank you,

Sean

Welcome to BP Rich, 

Make sure to check out the Podcasts and don't be afraid to jump into discussions. Set up some notifications/alerts and let the info come to you. Pretty much everyone on here is happy to answer questions and can help you break down issues you face so feel free to connect.

If there's anything I can help with just reach out. If I don't know the answer, I'll help get you in touch with the right person. The BP network has a wealth of knowledge. 

Good luck!

Sean