All Forum Posts by: Trevor Carlson

@Dan Sundberg I agree that makes good sense. An additional thing that is slowing the deal down is they want to hand the house off in better than it's current condition. I am having trouble convincing them it is okay they don't need to put any more time or money into it. Thank you for helping me think this through. I think I need to start by clearly offering the rent solution and then working from there.

@Dan Sundberg Thank you for the information. Probably we will put down a down payment and owner finance the rest.

@Dan Sundberg Thank you for the reply. You said they could rent back for up to 60 days easily? Is there something that happens after 60 days in California?

Thank you for reading this post and giving any ideas you have. 

My wife and I have a relative who would like to sell their property to us. This is a second property for them with a buildable second lot attached. Although this is a 2nd residence, they moved into it a few years ago so they could fix up their primary residence. However, they have settled in to this property and are having difficulty taking action to get their primary residence ready to move into and getting ready to move out of this property.

I have been trying to think of creative ways to make the purchase while allowing them some latitude in allowing them to stay for a time at least. But I need to fix the place up and maximize rent as soon as possible to make the purchase make financial sense. Any ideas?

Welcome to BP! Keep that momentum going by figuring out what type of RE investing fits your personality. The better you know yourself the more success you will have. And don't expect it will be easy. You will get plenty discouraged before you land your first deal. Just keep moving forward.

@Benjamin Couch as a physical therapist I commend your girlfriend on her career choice. It is a very rewarding career that pays okay. I personally graduated with $80K in debt from a private school in Washington. That was 10 years ago, my wife supported our living expenses and I entered PT school with only $10k in debt. I could have done it cheaper but not a lot cheaper. 

If your girlfriend has 5 years left of school that means she has 2 more years to get her bachelor's and then 3 years of PT school to get her doctorate. Already having $35k in debt is a lot to start the rest of this journey with. I would start by talking with her about these numbers and how she intends to pay this off and minimize the expenses going further. From the very little information in these posts it appears that you two may view money differently.

The easy part is you deciding whether or not to pay off her debt. The hard part is having the deeper conversations about how each of you value money and what you want to use money for in your lives. Take time with these conversations (multiple, not trying to figure it all out in one conversation) so that you can genuinely see, from her perspective, how she views money. Disagreement in how to spend money is one of the primary reasons cited for divorce. Consider this issue carefully.

I hope this helps :)

It looks like there may be a mistake in your analysis. For some reason the Total Cash Needed is listed as $334800. This should be your down payment plus closing costs and rehab costs. I ran the analysis with your numbers (assuming $3500 for closing costs and no rehab) and got similar numbers except for the Total Cash needed. Your Cash Flow is positive, not negative, but what is negative is your Annualized Return. This is due to the projection of selling your property for less than you paid into it. You can see my analysis using the below link:

https://www.biggerpockets.com/...

I am not sure whether this a good deal in your area but it does cash flow based on your numbers. However the cash on cash return is very low even with the lower total cash needed in my analysis.

@Marshall Secord congrats on your leap into the entrepreneurial world. Despite the increase you'll pay in taxes it'll be worth it. Unbeknownst to you, your employer was paying an amount equal to what was taken out of your check for social security and medicare. Now that you are the boss you have the privilege of paying this yourself.

I highly recommend the book Profit First by Mike Michalowicz. He talks about setting up your business with different accounts to make sure you have enough to pay your taxes at the end of the year. There is a fantastic chart that is a good starting place for how much you should save based on how much you are making gross.

He was featured on the business podcast here: https://www.biggerpockets.com/...

Hi Kevin, I found this old post when i was doing a search on the site. I hope you have found the information you need by now but if not check out this podcast:

https://www.biggerpockets.com/...  

I was catching up on podcasts this weekend and just listened to it (#472 with Nick Lamagna.) He did an excellent job of detailing how he wholesales commercial deals. If you haven't listened to it yet I think you'll find it very helpful.

My understanding (talking to locals who have experience) is people have done well before COVID. After going through a tough first three months after the lockdown they have done okay during COVID. For properties within city limits there is an application process for getting your STR permitted which is required:

http://www.ci.eureka.ca.gov/ci...