All Forum Posts by: Shawn Parsh

Mark,

If I understand correctly you are living in the downstairs and you have rented the upstairs. How do you currently decide who pays what for the utilities? What utilities do you have...gas, electric, water? What about internet and trash service? From my perspective I would definitely separate the utilities for heat and hot water whether that is gas or electric. I have seen many situations where a tenant in an upstairs apartment would leave their window open in the winter because they were hot while the tenant downstairs kept the thermostat up. If your intent is to keep this a two unit I would separate the utilities it will likely save you money and aggravation in the future. I have separated many multi-units over the years that I have bought that were on shared utilities. Good luck. 

Michael,

I would suggest you buy the live in house as a owner occupied property and stay their for the foreseeable future while you rehab the property. As mentioned your options for the loan will vary depending on the condition of the property. With it being owner occupied you very well could get a loan for less than 20% down. 

There is no way I would refinance the duplex given the interest rate you are currently paying. You will not get anything close to that right now. Good luck.

Rob,

You have been given solid advice. I would definitely take up Chad on his offer and go visit him and his projects. I would also highly encourage you to become active in your local real estate clubs if you are not already. It is a great place to connect with other investors. Just make sure you are talking with an actual investor when you take advice not someone that is "planning on" investing. 

Read as much as you can about real estate investing to improve your knowledge. Keep an eye on what is for sale in your market, what is selling, and for how much. Also track rental demand and cost. 

On a side note what branch did you serve in? 

Chris,

I agree with many  of the comments. If you haven't already join the local real estate investing club and figure out who is actually investing not talking about investing. Most real estate investors I met over the years are more than willing to answer questions and give advice for free. There is an added benefit when they are in your market. I would also make sure I was connected with a good real estate agent that knows investment real estate and is willing to help educate you through the process. Read all of the books you can on real estate to learn the business faster. Watch the market to get a better gauged on what is selling and for how much. Also keep on eye on rental demand and cost. And at the end of the day the best way to learn how to buy and rehab houses whether to rent or flip is by doing it. Good luck. 

Gary,

I started out the same way doing most of the work myself until I was told and realized that I should spend my time doing what I do best which is finding and negotiating the deals. You may make a little less per deal, but you will have time to do more deals. I would not hire employees, but I would build a team of people that you can call on that have their own businesses. I have insurance on all of my properties for liability and by hiring people to do the work I have never had to pay workers comp. For example, I use my electrician a lot but he works for himself not me. Good luck. 

Abdullah,

You have been given some solid advice already, but I thought I would add my input. What has worked for me is getting the word out that I buy houses and what type of house I'm looking for. Not only do I tell the people I interact with that I am looking for distressed properties (my focus) but I also tell them that I pay a 1,000 referral fee for any unlisted property that they tell me about that I buy. After you pay out a few thousand dollars for deals you will have a network of people that are always looking for potential deals for you. Good luck. 

Shravan,

Sorry to hear what your going through. I agree with Bruce and his comments. I suggest that you try to invest locally. It makes it way easier to keep an eye on the project and to know the people involved. I live in a small rural community and I can find deals so see what is in your area. Good luck. 

Connor,

  I would not buy the property with the tenant still in it with an agreement for them to leave. If they don't leave as agreed you would then be stuck trying to get them out. If you don't own the property yet they are not your tenant. I would work a deal with the seller where maybe you add a certain amount to the purchase price to cover the cash the seller offers the tenant to leave. Make the purchase agreement contingent on the house being vacant by the purchase date. 

Derek,

I agree with Bruce, I have not and will not pay a contractor to give me a bid. If they want a chance to get the job they will give the bid or I will find someone else that will. Good luck. 

Zackary,

  I see you have been given solid advice already, but I thought I would add my input. I would read as many books on real estate investing as I could to more quickly learn the business. I would join a local real estate investing club and figure out what members are actual investors and which are "going to be" investors. Then pick their brains about your local market.

I would review listings on line on a regular basis to get a better gauge on what properties are selling for and what seems to be in demand. I would also look into rental rates in your area, vacancy rates, and the demand. I would talk with multiple realtors to find one that is experience in investment real estate and is willing to help teach you the business. A good one will realize that a little time investment up front will likely turn in to future commissions. 

In addition to the other advice I would look into lease options otherwise known as rent to own. I have bought many properties over the years with little to no money down with  lease options. In my experience the odds of a seller accepting a lease options goes up as the property condition goes down. You could find a property that needs work, sign a lease option contract, and then live in and rehab the property. Once you have finished the rehab you could go to a bank get a loan and purchase the property. I've done it many times where I did not have to put any money down for the purchase. My investment into the property was the money I spent on the rehab. The after repaired value was much higher then my purchase price which made it a good deal for the bank and me as the investor. 

Anyway, I hope something I said helps. Good luck my friend.