All Forum Posts by: Timothy E Sullivan

Quote from @Jared Hottle:

Nice man sounds like you are grinding it out! Look to get a HELOC on the property and use that cash to buy another fixer upper and do it again but make sure you refinance that one out. A great option for the house you are currently in is house hack for a few years and sell it then you wont have to pay capital gains, get to enjoy the house and hopefully rates will stabilize at that time.

I have definitely thought about the HELOC, and house hacking! I am not ruling anything out as of now!

Quote from @Abbey Humphreys:

Hey Timothy - definitely respect the hustle as far as wanting to build a portfolio. Rates are on the higher side right now, for sure, but I also understanding wanting to get after it. The BRRRR method, essentially what you're talking about, is a great strategy as far as scaling up.

(BP's own David Green has a fantastic book outlining the ins and outs of this method https://store.biggerpockets.co...)

As David Green himself says, the first BRRRR property is usually the most difficult. You have the "B" done and the first "R" is progressing. Now it's up to you as to whether or not you want to risk the higher rates and keep pushing forward or wait it out!

Thanks for the motivation!! And I will order the book!

Quote from @Scott Johnson:

Quote from @Timothy E Sullivan:

Hello all!! I bought my first house Last March and started the rehab officially in June. I have a full time job, and after work I work on projects until it’s time for bed! The house was neglected for 10 years, but with some work it’s looking good! I’m wrestling with how to do the deal when I’m done with the rehab! I bought it for $115,000 with a 4.125% interest rate. The realtor said to clean the property up put a new roof on it and sell it for $200,000 but I want to have it as a long term rental! My dad tells me that I’m insane if I refinance after a few months, because of the rates now. I just don’t see how I could leave that money in the deal, because that will get me another property and start to scale!  I set a goal for myself to have 10 Units at 40, and to give some insight I’m 28. I think I can get to that number before 40 but want to make it attainable. Just looking for some pointers from people that have gone through this before! Thank you for your time!!

 I totally get wanting to set yourself up for scale, but just remember that Real Estate Investing is a marathon, not a sprint. 

"Slow is smooth, and smooth is quick."

Your dad could be correct, but what I'd do is look at the refinance numbers. How much cash flow do you want to have from the property. When you know that, you can backwards calculate how much of a loan the property can afford based on the rents. I'd also wait until the property is rented, so that the income can be used to qualify you for the refinance. 

Post the rental numbers you're looking at and how much cash flow you want to have after refinance. Then we can help you roll numbers 😄

I looked at other rents in the area and people are getting 1200 to 1500 a month. I was thinking between that range I would list it for rent. I would be totally fine with a few hundred dollars of cash flow I am not trying to be greedy! Just want to live by the saying you said above! 

Hello all!! I bought my first house Last March and started the rehab officially in June. I have a full time job, and after work I work on projects until it’s time for bed! The house was neglected for 10 years, but with some work it’s looking good! I’m wrestling with how to do the deal when I’m done with the rehab! I bought it for $115,000 with a 4.125% interest rate. The realtor said to clean the property up put a new roof on it and sell it for $200,000 but I want to have it as a long term rental! My dad tells me that I’m insane if I refinance after a few months, because of the rates now. I just don’t see how I could leave that money in the deal, because that will get me another property and start to scale!  I set a goal for myself to have 10 Units at 40, and to give some insight I’m 28. I think I can get to that number before 40 but want to make it attainable. Just looking for some pointers from people that have gone through this before! Thank you for your time!!

    I was getting ready to leave work to wire the money the day before closing on Friday, and I got a call from my realtor saying that the seller has to come to closing with $7,000 and she said she doesn't have the money.  After talking with the realtor some more my thought is to threaten to take legal action against her. Or she can bring the money she does have and I would cover the rest.  I don't understand how we could get this far in the process and the day before closing they kill the deal and just tell me thats how it goes!  How does the sellers agent get away with it with no consequences?  As a buyer they dig so deep into your finances, and one little thing that looks odd to them they ask you 20 questions about it, but they wait till the end to see if the seller is in good standing?? Is there anything I could do?  I saw some other post saying you can put a lien on the property.  Its a good deal in the area i'm in and I hate thinking that the deal is just gone!  

    One last rant!!  I don't understand how people can have all these legal documents and still can back out!  The sellers agent is not returning any phone calls!  Honor is of the distant past!!!! 

Good night.

I am 24 years old and have one property under my belt, and I'm am looking to do another deal. A few of my friends went to Michigan State. I was looking at homes for sale around the MSU campus, and after talking to my dad who is a builder brought up a good question. Is the rental market around MSU campus over saturated? This got me thinking because I don't want to take my hard earned money and find out that it is in fact over saturated. 

     Thank you for your time!

      Tim

Originally posted by @Bjorn Ahlblad:

@Timothy E Sullivan I think you would be disappointed if you did not roll your IRA into a REI adventure. REI done properly and over the long term can easily out pace the Roth IRA.

Thats what I've been thinking about! I got my father that has been in the building industry his whole life and I feel like its a waste if I don't take his help he has offered me! 

I have already learned a few things from reading through the replies and making some notes! Thanks for the suggestions. I will take some time and finish the house I bought back in November!! 

I am 24 and I am a merchant mariner. I have been sailing on the Great Lakes as a Deck hand. I sail during the summers to pay for school and 4 years ago I stayed out for a full year. That left me with a nice bank account after I paid for school and put a large sum away into a Roth IRA, but after the last 5 years I have not been happy with it. I know it's a long term investment but after the last few years of getting updates it hasn't done as well as I thought it should have.

I have a good amount in the Roth IRA, and I have been looking at homes around one of the major local universities. There are a lot of duplexes under 10 minutes from the heart of the college, and under $50,000. I have seen what real-estate can do for people, because my grandfather was a developer in the Washington DC area. His 10 children are still reaping the benefits of his work.

I guess what I am asking is if my idea of taking some, if not all, of the money out of my Roth IRA would be a good idea. My gut tells me probably not, but I think the benefits in the long run of buying these homes would set me up for the long haul.