All Forum Posts by: Zachary R.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Thanks @Phillip Bicker!  I'll reach out to him.  Very much appreciated.

Hey guys - 

I've come to realize over the past 18 months that my financial advisor is a great guy, good at his job, but simply not specialized in what my goals are.  It seems like each time I promote a financial strategy, I'm met with "that's a great idea, you're doing the right things."

I want to find a financial strategist, not just advisor, that understands the acceleration I'm setting goals around.  I.e. not just retirement planning with conventional products, but freeing up cash and putting it to work in creative ways.

A referral from BP seems to make much more sense, does anyone have suggestions on someone local that works with real estate investors specifically? Products that I already have understanding of and established vehicles for:

-401K

-Traditional IRA

-Paid Up whole life policy

-Individually taxed investment accounts

-Real Estate portfolio of SFR's

Thanks in advance!

@Greg H. Financing is secured, but you're right that portion was a little tricky. Per the other questions re: Repairs and market rent - Yes and Yes, but I may want to consider negotiating this portion so that I am covered further.  What type of red flags do you see with leasebacks?  Any, I'm still curious if anyone out there has experience in replacement costs/repair estimates for these types of things.

Thanks Greg!

Hi Everyone,

Thanks so much for your input in advance, as I'm a bit over my skis on a property that is currently under contract. Let me first provide a little context on where we are at with the deal and the overall condition of the property.

My intention: Primary residence- 2 yrs, then rental

Location: Denver, CO (Very high growth neighborhood, this deal was almost all dumb luck...)

Condition: House is B Class, recently remodeled, 3br, 2ba, huge yard, carport, shed, new roof, everything about this house is above and beyond what I consider move in ready.

Asking price:  $399,000

Days on Market: 27

My Offer: $375,00 (Accepted)

Contingencies: Inspection, Appraisal and Seller allowed to live in the property for 9 months after closing while new build is being completed.

The seller is in a position where they need capital to finance and complete the build that has already broken ground on their new home. This is why the sudden drop in price (we were looking at the property for the first time and the sellers agent called and said we are dropping on the MLS tonight. I made the offer immediately.)

I am in the inspection objection period right now and got the inspection & sewer scope reports back last night.  Long standing relationship with both companies that completed them and the company that did the sewer scope called right after to go through the findings 1x1.  Net result, there are two cracks that will cause problems 5-8 years from now and will be a significant cost to fix.

The inspection report shows that the boiler is end of life, needs replacement.  

Problem: I have ZERO idea how much these costs, or where I am in terms of position for negotiations.  Nor, do I know anything about boiler systems. I am from Texas where we all had HVAC systems until I moved to CO. 

I don't want the deal to fall through, but I'm also not going to take on these huge costs and we're providing the seller the opportunity to finance their build (while letting them live in the home that I planned to use as my primary residence.)

Any advice on what we should push back with? I feel extremely confident that we are getting the house at $20K under market price because there is a ton of fluctuation right now ( I just bought a separate SFH in Arvada 3 months ago and have been watching diligently daily, if not hourly!)

Help!?  Inspection deadline is tomorrow.

Thanks again everyone :)

___

For Context, boiler details:

Approximate capacity: 105,000 BTU/hrEfficiency: ConventionalExhaust venting method: Natural draftApproximate age: 38 years 39 years 40 years 41 years Near end of life expectancy Typical life expectancy: Boiler (cast iron) 25 to 50 years

Main fuel shut off at:  Meter

Failure probability: Medium 

Supply temperature: 180°F 

The following issues were noted at the time of the inspection:

1. Water could be heard moving through the heating pipes as well, which is symptomatic of air in the system and a possible failure of devices on the boiler meant to purge air,

2. The flame pattern on the burners had a significant amount of orange flame, indicating the burners could need to be cleaned or may not be properly combusting, and

3. The boiler took a longer than expected period to reach a full operating temperature of 180°F.

Recommend the boiler be serviced and certified by a qualified boiler specialist prior to the end of the contingency period. Implication(s): Equipment failure | No heat for building

No one else...due to feelings about conflict of interest?

I just went through the exact same scenario in south Austin and decided to sell. ZIP was 78704 and we accepted an offer first day on the market at over asking. I would recommend selling for something that will cash flow, you’re taking tax free money and you can immediately get something that cash flows in your new market. Debt to income was what ultimately drove my decision, since I wasn’t getting the loan I wanted without proper cash flow on the Austin property. It was a tough decision but if you’re looking to move into other properties/accelerate your progress, you’ll appreciate using this one to jump start your business. Feel free to message me if you’d find it useful. Good luck!

Thanks Wayne, I'm more thinking about how I should approach my lender with these updates. He was somewhat aware that these changes in plans could take place, just don't want to end up in a compromising position that might damage my future discussions with a great lender.

Hey everyone,

I recently purchased a SFH under a conventional 30 year loan at 10% down and 4.5%. A couple things have changed since I purchased it, mainly a separation from my spouse, and we no longer occupy the property.  I'm now in a position where it makes much more sense for me to purchase another property for myself rather than pay monthly rent, while I have time to take on a house hack until we determine our future.

My question is, and although my lender assures me that my W2 income (tech sales) justifies abilities to secure a large amount of financing, how have you guys approached getting a second loan without breaching the occupancy terms within the original loan.  Ex. below:

"Borrower shall occupy the residence within 60 days and occupy the property as principal residence for at least one year after the occupancy, unless lender otherwise agrees in writing or unless extenuating circumstances exist which are beyond borrower's control."

I am in a place right now where I have cash for 5-10% down on the next home with no problems and zero debt outside of a car note, 800+ credit score. Also, note that the home we purchased to live in together is cashflowing so that debt to income is not a concern on the new loan.

Suggestions on how to approach my goal of attaining a secondary loan for the house hack? This will be my third deal, although I only own the one property at the moment after selling my first deal off.

Thanks guys!