All Forum Posts by: Todd Powell

@Neal A. The roof is the primary issue insurance companies look at. I used to have State Farm but with doing so many past flips, they were hesitate due to the likeliness of injuries while the place got rehabbed. If they know its a short term insurance policy they feel its not really worth their time. On 4 plex or above I have found Country Financial to be better coverage for cheaper rates than State Farm. But, its a tough one for ugly flips for sure. Maybe shop some other companies? Sometimes they will use pics from the internet and ask you what the roof is like. If you can get a roofer bid and a start date to fix this may help your cause. 

@Brian Dickerson IF its a B type property/area, I would still screen well and do not get desperate. Every time I have talked myself into someone less desirable it has bit me. I use mysmartmove.com  Maybe others have suggestions, but I would not take poor credit, UNLESS it is for legitimate medical reasons and they have a strong job and income. Typically, decent credit, 3 times your rent income, and speak with prior landlords (and do not just take the current one!). Best of luck!

Todd Powell

@Danielle McClelland I started at 35 exactly as investor. Mind you, I bought my first house at 24 and by 30 we were on our third house that we built. But, at 35 I started my first flip, and some 20 something flips later, we saved enough to buy into a 72 unit campus property with a partner (we have the minority part of the LLC), and we also have multiple buy and hold properties; one house, four 4 plexes, and ownership 50/50 in a 5 plex and 8 plex with our son and daughter in law. It's a to establish that base of credit and W2 to get started, but don not let fear hold you back. Also, most of our deals we have acquired through off market deals, not chasing the multiple offers through the MLS. Take the first step!

@Kyle Kadish should we get LLC or put this in my name due to 1031 and then add my son later with "tenants in common?" This is new to me. I would like to trade my house and use the tax deferred money with 1031

This maybe a complicated question. I have a house I have owned for over one year and have my eye on a off market triplex. The same seller I purchased a 4 plex from a couple years ago. It is a run down property again and last time I got him to carry the loan for 20 years. This time I want to do a 1031 exchange with the house and trade into the triplex to avoid capital gains, and also have my son go in on this deal 50/50. I could cover the down payment with house proceeds and he can use his cash for extensive rehab costs. One expert told me I could possibly pull this off, but mentioned something about my son being "tenants in common." Does anyone know out there? I meet with the seller this Thursday to discuss options. Thanks for any input out there!

Cheers

Todd Powell

@Sherfeng Vue One thing I would do is pay yourself and save whatever the market rent would be on your side. Also I would definitely buy a second duplex If the numbers pencil but make sure you have some savings in hands for repairs and vacancy.

@Denise Evans where do I find Oregon Regs do you know ?

@Toi Perry is the location considered good or sub par? Location is always a key. Also if rents can go up it sounds better than what in find on the west coast. It would be a wonderful idea to use the inspection to your advantage. I have done many deals where I used legit inspection findings to drive the price down. If you don’t have 3-5 years on a roof your FHA loan may have a issue. Overall the place looks nice and clean. You can do well over the 1% rule and that’s why I ask about the stability of the neighbirhiod. If a B or C type property or lower ? The potential to raise rents is the key and also make sure you pay yourself market rent and save that into an account. Hope that helps. Todd

@Ken Nyczaj should be the Holy Grail. Lol Why not ? Tried to buy one and years later the church got it done when I failed with the sellers.

@Mike Hanneman I totally agree ! I have done both but flipping is working a second job for me. Holding quality properties and getting lots of rent checks every month is building wealth ! Love that mailbox money.