All Forum Posts by: Tanner Sherman

Have you tried to find any off market deals? I would start by looking for For Rent signs or advertisements, and contact those owners to see if they are willing to sell. You may get 99 no's but all you need is 1 yes. If an owner is trying to rent out a unit and is having a tough time they may start to get frustrated with the investment and be willing to get rid of it.

Also, when you get a no, make sure you ask if they have anything else they would be willing to sell. 

I would say that it is not nearly as stressful as you may think, but run your numbers as if you are going to hire a property manager so it is always an option and deal is still profitable should you decide to go with a property manager. I for one, don't want to deal with the property at all and if I can just find deals, buy and delegate to a manager without adding any stress then that's what I'll do. A good property manager is worth their weight in gold, at least that was how it was put to me when I first asked that question. 

I think with those numbers a refinance would be a good play, depending on the equity you have in the deal. If you owe $100k on the deal, and refinance at 70% LTV that will be $105k, minus the closing cost you're only cashing out a couple grand and your monthly payment doesn't change much from the one point of interest. I'm curious to know more of the numbers because if this is a deal you got a few years ago and have some significant equity then this would definitely be a good play.

Quick backstory-

My wife is covid- unemployed and just gave birth to our 7th child. She is home with the 3 youngest and is trying to finish her online schooling for medical coding, to bring in some more consistent income for us to invest with. She then wants to get her real estate license. I constantly mention hiring a housekeeper, as our laundry and dishes never end, not to mention the rest of the house. She spends so much time cleaning the house and following our hulk of a toddler around that she doesn’t have time or energy to get the work done. I would love to hire a housekeeper, but I’m curious as to the experiences good and bad people have had with them. What kind of work for what rates and was it worth it?

@Joseph Greer “if you really wanna do something, you’ll find a way. If not, you’ll find an excuse.” -Jim Rohn

I am the type that works 4-5 jobs before I’ll cut down my expenses. I have found ways to make money doing things I normally do. If I get called out of work because of snow, I take the opportunity to go snowplow. When I’m driving home from work, I turn on DoorDash and make some deliveries to pay for gas. Same as when I’m going grocery shopping or Christmas shopping. I turn on DoorDash and it usually pays for the things I buy.

Leave your ego behind, get humble, bust your butt and find opportunities and more will follow.

@Wa Chan I don't know how the market is there but that CoC ROI is way too low for my comfort. Any one thing has to cost more than anticipated to put you into a loss. If it's your first deal and there's a relatively small rehab then maybe you would be alright but for me, on the first deal I'd want to estimate an 18% ROI, anticipating that due to being naive the realistic ROI will be 4.5%.

@Daniel Dellanno talk to a CPA or real estate attorney. I have found a lot of them do free consults to see if their services are needed. In some states, setting up an LLC is as simple as naming it and paying a small fee. In others, it requires a lawyer which could cost $500-$800. Either way, the best thing to do is to have a working agreement that outlines duties and responsibilities and payouts. It is best to have an attorney do this as there are many aspects you may not be thinking of and the attorney will make sure you both are covered equally.

I had a 15 minute phone call with a CPA, asked him some real estate specific questions and by the end of the call was willing to pay him whatever it took because he was knowledgeable, professional and ensured both me and my partner would be covered.

@Luis Serrano best way, offer to pay each of the tenants a nice chunk of change to leave, (ideally their monthly rent or x2) and just underwrite that into the rehab budget.

@Cody Hartman that is correct- you can have 10 conventional mortgages in each of your names, 20 total. You can have unlimited commercial loans, however.

So if you put both of your names on the mortgage you each can get 9 more conventional loans, or 18 more total.

@John Zilverberg sorry to hear about that, but you I don’t think you should go after the home inspector to get your fee back over this. Not sure if there is any course of action if the seller didn’t disclose the issue, or put a “unknown condition” to cover their behinds, that you just didn’t catch. Everyone wants to blame the inspector, but I’m definitely curious to see what they reported regarding the heating system because it’s usually something along the lines of “possible issues, have a professional inspect further” and everyone freaks out saying HE SHOULD HAVE KNOWN