All Forum Posts by: Spencer Joseph

@Mat O'Grady- always willing to help! 

Is that link from a company you use or just a newsletter you signed up for and they email you homes ever so often?

LOL - I actually called you the other day and emailed you my details on potentially working together. Would love to keep chatting if you have some time @Jerryll Noorden

I have looked through every facet of BP and maybe its my location but I can not find any wholesalers who sell to investors in my state. Hoping this post sparks some action from those who may be doing this today and would like to start a conversation. 

-Spencer

My brother and I want to buy a 2 family house so that he can live in one side and we rent out the other. Because it is his first time buying a house the plan was to put down between 3-10% (which we would evenly split). The area we live in is fairly expensive and most multifamily homes are around 600k. Because of this the rent on the other unit does not cover the cost of the entire mortgage (about $1,600 short). 

With that being said who picks up the remainder of the mortgage? Do I split that additional $1,600 that is left over with my brother (thus taking a huge loss, -$800 a month)? Does he absorb the $1,600 as rent? I cant imagine that every house hack covers the mortgage entirely so I am trying to find out when it becomes worthwhile or a "deal". 

How do we make it work being that he will be living there and I will not. How do we make it fair so that we are both getting something out of this. 

Thank you,

Spencer

@Anthony Wick Do you think even if I kick them now I would be screwing myself because we would be at the end of the beach season?

Hi BP Community, 

I have an interesting situation and was hoping for some help. I just got an accepted offer for a multi family (2 units) in a beach community near my hometown. Both units are currently occupied with long term tenants that pay $1,000 and $1,350 for their units a month. From a ton of research and analysis of the area I am sure I can get at least $1,200 and $1,800. Both tenants have expressed their want to stay. I have run the numbers and even at the current rents the property would still positively cashflow fairly nicely. 

This is where it gets a bit tricky. As I mentioned this is a beach town (not predominantly but the units appeal is the location). The current tenants are month to month and will need 60 days notice before I can kick them out. My fear, and maybe this is where more expertise can weigh in, is that if I close on the home say late August and tell the current tenants to leave that by the time the 60 days is up it puts us in late October early November. Am I screwing myself by having an empty house on the off season where it may be significantly harder to rent? Do I leave them there and kick them around February in preparation for the spring/summer? Or do i just kick them and use the winter months to renovate so when the season comes I can maybe get more rent than anticipated. 

Any input would be really appreciated.

Thanks, 

Spencer

Awesome, Thank you  @Charles Kennedy

@Jacob Sampson @Jeremiah Mon @Russell Brazil 

Thank you all so much for the quick response and sharing. What I am looking for is single family homes mostly but wouldn't be opposed to condos or MF's (no more than 2 units, want to start small). 

Question for you all, sorry if it is novice, but if cashflow is whats important is there an ROI % I should shoot for? What would be considered attractive cashflow? Or is that an ambiguous question since it can be different for everyone?

Thanks,

Hi BP community, 

I am new to the BP forums but have been an active listener to the podcasts for a while. Have been spending the last few months sharpening my knowledge and skills to best arm myself for when I pull the trigger on a property. My goal is to build long term equity by buying and holding. I have been running a ton of cap rates and can not seem to find anything above 6% in the areas I am most interested in. My question is how important is a good cap rate in the grand scheme of things? Should I hold as much water in Cap rate as I have been doing lately or am I giving it too much credit? Lastly, what other factors should I also look into that can determine if the property is a good investment.

Really appreciate your insight and thank you in advance

Sidenote: Would love to connect with some local CT BP members if you want to connect

-Spencer