All Forum Posts by: Sharlene Burch

@Dustin Allen & @Jordan Moorhead - thanks for the feedback. The updated homes are selling for more and quicker. In the last few months homes in my area have been selling in a matter of days and over list price. My home does need new windows for sure, so I will go ahead with that for now. I don't need to sell it right now, so I have time to do the updates and then move ahead with selling it. Not sure how to word this in the listing information. My agent thought just marking it Temporary Unavailable. But I'd like something in the description that indicates I'm having updates done and it will be back on the market once they are completed. As an agent have you ever worked with someone that was updating the house while it was listed? How did you word that so that prospective buyers knew why you pulled it off the market for showings? 

Not sure where to post this so I'm posting it here. I own two homes. I am selling my primary resident. Already have it on the market. However per the realtor I'm using the market has really slowed down. I'm in the Minneapolis market.  It's an older home and needs new windows for sure. I did recently have new flooring and paint done in the lower level. Thinking of getting the exterior painted also. I'm not in a huge hurry to sell but would like to be out by fall. Would you all recommend putting in another $20K in hopes that in the next 90 days I can recoup that by raising the selling price? I am estimating the updates and staging (I'm going to be moving out in the next 3 months to my other house) will be around $20K , so I'd at least want to raise the price by the cost of the updates. Current list price is $355,000, so I'd be around $375,000 if I wanted to recoup my cost of updating. my gut tells me to update the house and then put it back on the market. But I want to make sure I'm not missing anything. Are there other options I should consider?

I have listened to a lot of podcast about people in their 20's and 30's starting out in REI. Anyone know of any podcast where the guest was over 50, 60 or beyond and just starting out? I feel there are many of us on here that would be inspired to hear their stories.

Insight on financing these two deals appreciated. I have an opportunity to purchase 2 rentals from the same individual. One is a single family home renting for $850 and the other an up/down duplex combined rent of $1700. All three tenants are long term renters and on month to month agreements. Purchase price on both combined would be around $180,000 may be able to negotiate that lower once the inspections come in. I ran the numbers thru the Bigger Pockets Calculator and COC return is around 9% on both and I'm comfortable with that. I have been pre-approved for a conventional loan with 20% down. However not sure what the best option is for the down payment. I'm over 60 so I could pull it out of my 401K with no penalty, but I would get hit with taxes on it and I'm already in a pretty high tax bracket. I also have a HELOC I could access for the down payment, but then I feel I'd be over leveraged on the properties. I have very good credit and work full time with a pretty decent salary so I'm not retiring for probably 5-10 more years. I also continue to put about $10,000 a year into my 401K. I'm leaning towards accessing part of my 401K and part HELOC, maybe a 50/50 split. Just looking for advice from more experienced investors to see if there is another option or if I'm missing something in this scenario that might make it an even better deal.

Just to add another layer on to this, I am working with a realtor on this and she mentioned that this guy possibly has a 3rd rental he’d like to sell. I did ask her if he’d be willing to sell all three and she stated he is waiting to sell the 3rd right now (she thought perhaps because of taxes he's already sold 2 others this year) With interest rates being so low right now if it also cash flows and can get me 9% COC I'd like to make him an offer on that one too. How would you entice him to sell?

@Ben Bartels great question. I'm really struggling with where to invest my money, real estate (I already have a primary home and weekend/vacation/ retirement home) maxing out my 401k , or opening up a Roth IRA. I've read so much my mind is jumbled.

@Daniel Hyman can you share the name of the book? Sounds interesting

I have around $50,000 in a 401K and I'm wondering if I should leave it where it is or if there is another investment that would yield more money in my retirement years, which could start as early as 2-3 years from now. Because of my age, 59 1/2, I can take some, or all of it if I wanted, without penalty. But I would have to pay taxes on it, and I'm already in high tax bracket. I originally was going to use some of it as a downpayent for rental property and then Covid19 hit and there are so many unemployed in the area I'm in that I'm not sure I want to do that now. I'm kind of just sitting on the sidelines now seeing what happens with the economy and hoping the stock market doesn't crash in the meantime. I do own two homes now, one is my primary residence in the larger city (Minneapolis) and one is my weekend home/ will be retirement home about 3 hours away in a more rural setting in central Wisconsin, which is where I would like to invest if I did end up purchasing rental properties. I'm estimating that when I do sell the house in the cities I would clear around $50,000 - $80,000 on it in a couple of years. But that is going to depend on the housing market too. Sure wish I had a crystal ball. Any insight would be appreciated. 

Good Morning Bigger Pockets! Hey I have a young professional (extended family member) in the Rochester Minnesota area looking to purchase her first home. She's looking for a duplex, smart move on her part, but doesn't have a clue where to start. She has a good job as an officer with the Rochester police department. But told me her credit isn't the best. I didn't ask specifics. Anyway I need some recommendations on Lenders she can work with in that area. I'd like 2 or 3 at least so she can talk with them and find one she's comfortable working with. I'd also like a couple recommendations on Realtors in that area. Someone willing to work with a first time home buyer who will have lots of questions. And speaking of questions - Any suggestions on specific questions she should ask a realtor and lender in the vetting process would be helpful. thanks!

House hack... If you qualify for a FHA loan with a 3.5% down payment. If I did my math right that would be a duplex for $285,000. Rent out half, live in half.. have your tenants pay your mortgage and then spend some tie learning the business. Live in it for a year, rent the other side out and do it all over again.

@Glenn McCrorey lol!