All Forum Posts by: Tracy J. Adkins

The asking price is $260k but since I plan on getting the funds from my HELOC and make it look like a cash offer, I have a chance to get it for a lower price.

I'm estimating the total between the price of the property and repairs to be about $300k ( hopefully much less than that).

Now, I don't know exactly how the interest on a HELOC is calculated but based on a HELOC I currently have (for improvements to my primary residence) and the interest I pay for it, I'm loosely estimating the interest on the $300k to be about $1200 a month.

That, plus taxes and insurance, I'm estimating total monthly expenses to be about $1960 ($1200 HELOC interest + $660 taxes + $100 insurance).

It's a 2 unit property and from looking at a couple of rental websites, I think it can generate about $2300 in rent between both units for a positive cash flow of approximately $340 a month.

Again, these are very loosely estimated numbers based on some very light research so far. Obviously, this all depends on seeing the property inside and getting more concrete information.

Please let me know if there are any other expenses or numbers I may have left out. I'm kind of new at this. :)

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Alright we are closed and handed keys over so I can officially declare it a success!!

In at $173k

Out at $260k

Renovations ~$25k (including tools). We only subbed out windows and countertops. Otherwise all the labor was done by my wife and I. We did have some help from family here and there.

When we bought part of my criteria was solid foundation and newer roof.

Net was a little over $45k after paying the realtor.

Disclaimer - I'm not counting holding costs as this was our family home for the last 2 years.

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I'm kind of looking forward to having some of these stories for myself.

Pure gold.

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Originally posted by @Trevor Kolb:

I found this book 'The Millionaire Real Estate Investor' to be a fantastic read filled with great advice:

http://amzn.to/2tmM8H4

Halfway through this and I couldn't agree more! Solid book.

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I'm a little late to the party, been here a month now. But glad I found this place! 800,000 people cant be wrong!

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Originally posted by @Ben Leybovich:

So, you are talking about bridging income from income property into the debt service on your primary, while capturing forced appreciation from the owner-occupied SFR.

This is an option, but - at the end of the day you are still having to put your family into a construction zone in order to get it done, right? I considered this, but went with another formula. I found a multi-generational floor plan whereby there is a main house and an attached mother-in-law suite.

What makes this a better fit for us us that:

a. It's much better quality asset than any small multi could be. In much better location. It's basically viewed as SFR.

b. Financing as per owner-occupied SFR.

c. Much more conducive foot-print than a duplex.

Feel free to jump over to my website for details.

Hey Ben, just want to say I enjoyed your first two guest appearances on the podcast. I'm only on show 76 so if you have been on more I haven't heard them yet.

Great idea on the mother in law suite. We have looked over quite a bit of multifamily but nothing dealworthly yet. So I will definitely start proding around for a MIL suite.

As far as living in a construction zone, my wife and I swore this house we be our only one (https://www.biggerpockets.com/forums/223/topics/458640-our-first-flip-was-a-success?page=1#p2841674). Maybe we are glutens for punishment, but we are ok with doing it again. Lol. It is very convenient to get off work and then come home and hang drywall or paint. Plus my wife did quite a bit of work while I was at work without having to load up the kidos.

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Living in such a competitive market I have had a few different ideas cross my mind and haven't seen much info (probably not looking in the right places).

I understand house hacking in multifamily. It's straight forward. But my question is it worth it to to just find a distressed property that is undervalued for $100k or less, then do an FHA and free up capital to invest instead of rent or own a typical house?

Rent in the area is $1600+. So I could free up over $1000 by living in a smaller house with a small mortgage.

Rent a room isn't a choice since we are a family of four and like our space.

Or is it better to just have the typical rent/mortgage and then flip or rent the undervalued property??

I'm sure I confused a few people but hopefully it was clear enough.

Tracy

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@Account Closed thank you. To be honest we learned as we went. And we understand we got lucky. Lol. But the biggest thing we learned was that what we like and what buyers like are different. We had to take our color choices and throw them out the window. Neutral is king.

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Hello all!! My wife and I just put our first house under contract.

It was a house we bought to flip while we lived in it. While it took a little while to get done with some life detours (oil field going bust, bringing home a second child, etc) we decided about six months ago to get it done.

We put around $20k into it and did everything but the windows and countertops ourselves. We had very little demo done when we decided we were ready to get it done. The house was built in '76 and hadn't every really been touched except for more wood paneling.

Enjoy the pics and we look forward to your feedback.

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Thank y'all for the kind words.

We are actually getting our first house on the market today!! Then off to Austin, TX to make the next move.

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All Forum Posts by: Tracy J. Adkins

Tracy J. Adkins has started 6 posts and replied 21 times.

Post: Stay away from property that's been in the market for too long?

Post: Our First Flip was a Success!!

Post: Tenant Applicants say the dumbest things

Post: Best Real Estate Books

Post: BiggerPockets: You and 800,000 of Your Closest Friends!

Post: House hack with a family

Post: House hack with a family

Post: Our First Flip was a Success!!

Post: Our First Flip was a Success!!

Post: Introducing myself here