All Forum Posts by: Tyler Gibson

@Shawn G. I am sorry to say I am going to miss this upcoming meeting. I hope to make it next month. 

@Princeton Brooks If you are looking to House Hack then your concern should not specifically be to have positive cash flow. I mean yes it would be great if that were the case but since you already have a monthly living cost of $1500 I would look at a house hack where you could reduce your monthly living cost or even if you were to maintain the same cost of living. You would be gaining equity and you would have reduced your living cost allowing you to save more for your next investment or primary home. If you are looking for cash flow then there are turnkey providers in places like Memphis, Kansas City, Birmingham and other locations that could work out. 

@Adrian Kar Here is a link to another thread discussing a turnkey provider in KC.

https://www.biggerpockets.com/forums/48/topics/723499-bridge-turnkey-rentals-kansas-city-mo

@Robert Lindsley I live here in Orlando and I am aware of what you are talking about. My wife and I pay attention to the local news on a daily basis and one thing I know for sure is that everyone will forget. That unit might need to be empty for some time but you will be able to rent it eventually. @Joe Splitrock had a great suggestion with renumbering. 

@Serena Li for me a good deal is something that will cash flow after paying PITI and management and repairs and CapEx. If it makes $150 a month it is a good deal to me. Some investors have high requirements for cash flow like $200-$300 a month but I am buying for long term appreciation and equity growth. My investing does not replace my primary income.

@Jason Martinez As-is does typically mean that the seller will not make any repairs. However, it does not mean that you cannot renegotiate the price based on the amount you think it will cost to repair the items that were brought to light by the inspection. I think the big ?? here is the Fuel tank. $5k might be low considering the electrical and plumbing work. You might want to see if you can get a few contractors out to take a look and bid repairs. The things that are past life just mean that you should be prepared to replace if they fail. A/C systems are not cheap trust my I just spent 10k replacing the one for my primary residence but that is what you have to do in Florida (A/C is life). 

@Curtis H.Have you talked to a lender as to what your options would be? I would think there is an opportunity for a cash out refi. If you're doing upgrades it might even help the appraisal.

@Aaron Thompson You will want to collect a Security Deposit. The security deposit is money the tenant pays you upfront that you are legally required to put aside and would be returned to the tenant when they leave as long as you do not find that they have damaged the property. A property manager should handle all of that for you. They should do a pre-move-in walk through with the tenant where the tenant can point out issues they see and have them documented. When the tenant moves out the property manager should walkthrough again to determine if the tenant will receive back all or part of their deposit. This is all predicated on the language of the lease but a property manager should have a good lease that protects them, the tenant and you. 

@Saravanan Varadan I would put it to another unit. Even if you are worried about property values dropping, the reality is that we buy and hold investors should be investing for Cashflow and long term growth. People will always need a place to live so I worry little about a correction to home values. Because in 30 years the property will likely be worth more than I pay today and if it cashflows I am not really paying for it. In 20 or 30 years you should have plenty of equity to make it solid investment regardless of what the value is at that time. Putting the money into the existing mortgage will not increase the value of the property or increase cash flow. 

@Reginald Collier I suggest talking to a mortgage officer for more specifics but I think it is 6 months to a year. Also, I think the line of credit would impact your DTI but I don't underwrite loans so I am by no means an expert.