All Forum Posts by: Stefan D.

@Rachel Mellies I'm also in Utah.  I built up a portfolio of 8 units in Pittsburgh, all from a distance, most of them needing a lot of work.  You might need to source contractors from other places too, like asking your realtor, online, and from other investors.  You can do it, read a few books, listen to podcasts, and talk to other people that have done it.  Good luck!  Feel free to DM me if you'd like to talk.

@Scott Michael Gross

Not really any update to give, my current PM collected rent last week, Homes365 takes over next month.  I've got a contact at Homes who picks up the phone and seems on top of things.  Make sure you understand the monthly deductible, and that the rent and maintenance guarantees don't kick in right away.  Please feel free to check back in with me for an update.

@Aaron Hurst @Carlin Randolph

Sorry for the late response - only saw your guys posts now.  Thanks a bunch for weighing in - I actually did sign on with them, with the OneRate plan.  I'll be on top of things with them and post updates here so hopefully other people can benefit from my review.  I hope I have better luck than you guys.  

You can absolutely do it - but let me make a suggestion: Try working 35-40 hours a week instead.  It'll force you to be more efficient.  You'll say "no" more to projects that aren't valuable and start to think about the things that are important - the things that your boss will notice and will make a lasting impact at your company.  

I made it to the level of Director, with a team of 10 by the age of 28 and I rarely worked more than 45 hours a week - probably averaged below 40 (9-5:30 with an hour for lunch).  In my experience, lots of people keep them selves busy (or just try to look busy) by answering emails all the time, and doing pointless tasks.  Focus on the big things and free up time for real estate and for your family.  

Hi All,

Looking to see if anyone has used Home365 property management.  They are expanding nationwide.  I'm curious to hear just from people who have actually used them or interviewed them.  Thanks!

https://www.home365.co/

I closed on a loan with them.  Fees and interest rate were exactly what they promised.  Close took a few extra weeks, but so have all my other loans in the last year.  I'd use them again.

Hi Jake, I haven't gotten this kind of loan before, but maybe I can give you useful advice.  I don't think you have to worry about it hurting your credit, since you're waiting 9 months.  I'd guess your credit will actually be improved by then if you took out a personal loan and paid on time.  The important factor will be your debt to income ratio for that next 2 mortgages (the cashout refi, and the loan for house 2).  Talk to a lender and tell them your income to see if you'll have anything to worry about.

Private lenders will have worse rates and will require you to put 25% down, but the advantage is that they usually only care about the rent and debt of the property and your credit, but they don't care about your salary and debt.  I've got a few I could recommend, let me know if you want me to share their contact info.

Hi @Andrea Campo,

My properties are typically cheaper, but taxes usually come out to about $2k/year, and insurance is about $600/year.  You can get a property manager for cheaper, but you will have leasing fees and other fees - so really that number will go up.

The truth about buying houses 25% down is that you might have trouble making it worth it for the first few years - but rents go up with inflation, and with any luck the house will appreciate, which is where the real money is made.

You might also consider trying to find cheaper houses for higher CoC - but there's definitely a trade off there, for $170k you can buy in a nicer area and get more appreciation.

Alternatively, you could consider house hacking a duplex. If it's your primary residence and you're able to put just 3.5% down your CoC return will be higher.

Good luck!

@Robert Kohnfelder So technically an appraiser doesn't include appliances - although generally a place looking nicer might just help there opinion of the place in general.  

I can't answer all your questions since I usually only do small stuff to help with the appraisals: replacing all the light fixtures and door knobs so things look new, new cabinet hardware.  Clean up the property, obviously, some light landscaping.  I figured the bigger ticket items are less likely to be worth it - but maybe someone else can jump in here and tell you that.  On my last refinance the  appraiser adjusted the value of a comp by just -$1000 because it had central A/C while my property did not - although there's a huge value to the renter as well, ask your property manager.  

For the appliances, are you factoring in that if you went with stainless you could sell the old white appliances?  That might make it worth it, used appliances are getting a good price right now.

My biggest thing for getting a good appraisal is providing a detailed list of all the work I put into the property.  A few times I've provided comps, but you do have to be careful because that can seem like you are telling them what to do.  

@Account Closed Welcome. I've done a few long distance BRRRR's in Pittsburgh. Feel free to shoot me any questions you have.