All Forum Posts by: Brian H.

First, one thing I see over and over on here from people that have done this for a long time.... Don't use future, assumed rents to run your analysis. By that I mean, don't think "Oh, I will raise rents by maybe... $100/month to 700/month" and then use that 700 as your number. Use the rates at which they have already been successfully rented when doing your analysis.  If you are able to make the deal work with those numbers, awesome. Then, when you hopefully are able to raise rents (never guaranteed to work) that is just icing on the cake!  I only say all that because you said "rent will be increased".

So you are looking at maybe $70k into the deal in your own cash? Or are you looking at lending that incorporates the rehab costs?

Will it be possible to view the webinar after the 12pm - 1pm window? Hard to step away from work to do this sadly. But I am very interested.

One important piece that was left out. What are you planning to spend on the rehab? I assume that is needed?  

You are wanting to BRRRR this property? Rehab it and rent it out and then do the cash out refi to pull money out? Yes?

How large of a LOC can you get? Have you spoken to lenders at all?

@Kevin Chiu

Hey man!  First, congrats on the new property and house hacking it! That's a fantastic move. Wish I had done this when I was younger.  

I have not done this, but I bet you was the landlord insurance to cover you for the homeowner/landlord piece... and then they for sure want renters insurance but I would think that may be a bit redundant for you to obtain as well. I would figure the homeowner's would cover you and your possessions as the homeowner... but since it is the landlord style of home owners... it may not cover personal possessions. 

Have you spoken to an insurance agent/broker?  

 Thanks so much, Margie. I really appreciate the encouragement!  I am very excited and thrilled at this opportunity. Going from hoping to have one rental by the end of 2019 to this is amazing. I am also very anxious... haha But, I know I can do it and do it well. I was told by the commercial lender and the sellers' agent that I am the most organized, professional, and thorough person either one of them has worked with in this fashion. That meant so much to hear.  I am trying to do it all "right".  

I really, really appreciate the comment on preparing for the emotional burden that I have failed when problems arise. I can be bad about that... my girlfriend can tell anyone.  Especially when I have become so invested and passionate about something.  Hearing that from you helps me realize I need to work ahead of time to be prepared for the road bumps and know that they are expected and OK.

@Armin Nazarinia

Thanks man! I'm super pumped and super stressed. haha Well.. more anxious than stressed... but definitely excited. This accelerates my "5 year plan" by a good amount when I had hoped to maybe have one rental by the end of 2019. haha That's not a bad idea with the PM... I will think on that. Thanks for the well wishes!

@Jim K.

I responded to Nathan above. I am not dead set against property management and have even already tentatively lined one up if I need them.  They were the most highly recommended in the area.  

Would you have specific suggestions on any books on management, especially multi-family? I may have already read them but would love to find out about even one more book that I have passed over. 

I tend to have a very... manic personality when it comes to getting things done.  I am a very go go go type of person.  Not that that means I will be good at this. I just have confidence that I can do this, but am not too proud to realize, if the time comes, that I need to step back and pay someone to manage it all for me.

Thank you for your input!

@Nathan Gesner

Before I even approached my first flip just over under a year ago I had spent the previous three years reading probably 15 - 20 books (including every one released through BP) on REI. A few on flipping, such as J. Scott's books and a couple others, but mostly on buy and hold investing and management of buy and hold properties. I did not feel at all comfortable even thinking about doing any of this before I thoroughly educated myself. I also spent hours and hours and days and weeks and months on BP, both in the forums and on the blog.

I wasn't asking anyone to help walk me through this process. I was more just looking for people that maybe had some answers to the three specific questions I asked and then any other "anecdotes" experienced multi-family landlords may have that could help me as I move through this process.  I love all the information in the books, including your suggestion Every Landlord's Legal Guide (as well as a few others by NOLO, love their stuff so far) but just felt the reason for the forums is to try to get some more current, real world ideas from current landlords. That was all I was trying to do.

This is absolutely a big undertaking. I am absolutely stressed about this, but also very confident. I always achieve the goals/tasks I set my mind to.  I will work 100  hours a week if I have to to get where I want to be.  I can't count the number of times I have been referred to as a "steam roller" or "bull dozer" once I get a goal in mind. haha Are there any other books specific to Multi Family that you would recommend? I may have read them... but always love to find out about a new avenue for educating myself further.

Thank you. I PM'd you. Anyone else care to chime in? Would love some other thoughts!