All Forum Posts by: Joey Banasihan

Hey @Tim Porsche, we are under contract with a client around something like this and we have had this work done several times with other clients, and of course there is a lot of factors to consider, but I have never heard anything less than $10k.  The factors come down to the type of work they will be doing to "replace" this line, are they relining it with cured-in-place pipe (CIPP) lining, epoxy pipe lining, or UV sewer lining; those are between $2k-$5k (in my area). If that doesn't work, they need to escavate and replace the line; the escuvation equipment, labor, etc. will run you a decent amount as well.  I would have it scoped thoroughly and figure out how much line needs to be replaced.  Just some thoughts!

@Brittany Rogerson these are great questions, my wife and I did this a couple years ago so here are some thoughts, questions or considerations which we learned through the process.

- Are you planning on continuing to buyer more rental properties, and will your single income, plus rental income, etc. support you 5 year goals?  Talking with a investor friendly lender and talking through what this looks like, what you can qualify for, etc. can be very helpful.  We learned how much our buying power shrunk when I left my W2.

- LLC's is great but it takes some seasoning for the entity to be able to purchase properties; talk to a lender again about this but we did this and they still needed to use our personal income to approve anything. 3 years later, we are now good to go.

- CPA are SUPER valuable, especially with someone becoming a full time real estate professional and managing multiple properties. You will be exposed to a bunch more nuances and tax literacy that will help build a solid foundation to grow from. Highly recommend. 

Hey @Lorraine Hernandez, our team is well networked in the area and have worked with many investors purchasing homes with current tenants.  We also wrote a blog on BP about this very subject haha.  Happy to connect and learn more about this current project to how we can help. 

Hey @Jason O., room to room rentals for students can be a great strategy. Typically students are seeking housing before year begins (June-August) which typically lines up for active LTR season. Work with a good property management company who will get co-signers from parents (parents are typically paying rents) and be flexible around subleasing, especially during summer periods because students go home and do not always stay for summer time; this can still be a 12 month lease. I'd also suggest having in-person interviews (post screenings) as you can build rapport, not necessary just a suggestion.  Consider semi-furnishing the space to increase room rental costs and also contact your local university/college housing department, they typically provide students with resources for off-campus housing and you could plug yourself in there. 

@Spencer Shapiro for sure! Yeah a way out is definitely a tricky one, as you mentioned in your origianl post. As a realtor, I probably will refrain from adding my personal thoughts there. Good luck, you got this!

Hey @Spencer Shapiro, this is a hard one to reply to because a lot of this is based on folks personal thresholds around tolerance, uncomfortability, etc. It sounds like the main concerns are noise tenants and small space, which coming from a SFH that can be quite a stark transition. My first thought is use this time to understand the quality of living that your future tenants will inherent if they rent from you. Are there ways to improving the sound through foam insulation in existing walls? Many companies out there who drill holes all over and can fill cavities with foam insulation and then just drywall work. Can the space be reorganized in the future to utilize the space better? Will this help you get better market rents? How long are the leases for the other tenants? Do you understand the leases thoroughly to understand how to approach the noise, what the city and state laws are, how your property management deals with these complaints or do they? All of these questions and seeking these answers will only train your mindset on how to approach challenges within real estate in the future, and has the potentional to help you become a better investor/property manager. Just some initial thoughts and hopefully you can get through this!

 Hey! Yes, I ensure I contact them and let them know utilizing Avails screening tool. I typically pay for the screening so it makes it easier for the prospects.

Hey @Erick Ayapana, I'd highly recommend screening tenants with background check and having a lease reviewed by a lawyer. Every state and county are different, but once folks stay in a residence for 30 days or more, they will have certain rights that could prove cumbersome. I use Avail as a starting point and then have made alterations as needed via my laywers.  It is never a bad thing to have multiple layers of protection.

Welcome @Timothy M. O'Neill! I'm actually in Boise and our team is pretty well networked in this area. Happy to make any connections, help with analysis, etc. I will send you a DM for us to connect!

Hey @Daniel Coley O'Grady, there is a lot to unpack here but to put it simply, I think it would be beneficial for you to put more time towards education and mindset. There are more benefits to real estate outside of cash flow, besides CoC and ROI, what about ROE? In each city you have looked at, what has been the average percentage of market rent growth of the past 15 years? What about appreciation? If you buy a property that is zero cash flow for the first year, but rental prices go up 7% every year and apprecitiation is at 6% each year, is that a bad deal? If you buy a rental that cash flows day one $200 dollars a month, market rents go up 3% each year, but apprecitiation is stagnant for 5 years, is that a good deal?

There are so many ways to approach and learn and grow and fail and more in real estate. Why invest in a property that has a CoC of 4-6% and go through the risk of property ownership? Maybe because at the end of the year based on your earned income you can right off depreciation and other tax benefits that saves you $25K? Keep diving into podcasts, find someone local who has been doing this longer than you have, learn, and keep going.