All Forum Posts by: Adam Anderson

Hi Jennifer,

if you are investing out of state, which I do, you will need to factor in the cost of professional management.  Have you considered this?  If you are not hiring a manager, who will look after the property.  Even with investing in sate, its good to factor in the cost of management so your investment is still profitable if you decide to hire a manager later on or sell to an investor with a manager.

10% of gross rent collected is standard and usually goes down as your unit count goes up.  Some will also charge 50% of the first months rent as a placement fee and a flat fee around $200-$250 on the lease renewal.  

Adam 

HI Ian,

I work with Bill Fried and Ellen Oberndorf in Verona, NJ

11 Park Place • Verona, NJ 07044
Tel: (973) 239-6055 • Fax: (973) 239-3667

They are a small shop with great service and reasonable fees

Adam

You might be able to make a non deductible Traditional IRA contribution and convert it to Roth. We do this with our clients all the time. It works very well if you have a 401k or other qualified plan at work and therefore can not deduct the Traditional IRA contribution anyway, and do not have any money in a Traditional IRA already.

If your Roth IRA funds originated from only your contributions over the years or a Roth Conversion more than 5 years ago you can access 100% of your contrition's tax free for any reason at any age (see IRS Pub 590). The growth or earning can only be withdrawn after age 59 1/2 without penalty.

Adam

Congratulations! Looks like you did a great job!  Its been several years since I did a flip but I've been getting back into it and have a few irons in the fire in northern NJ too!  Keep us posted as your next project develops

Adam

Great!  Thank you!

Will the title insurance cover any liens from taxes or utilities?  What is an O & E Search for $5?  How do I go about doing this?

Great!  Thanks for all your feedback. I plan to complete the project in 2 months or less and it will probably take another month to put the longer term financing in place so the 90 days shouldn't be a problem. 

I was considering using hard money to purchase and fix so I guess this would be limited to 120% of the purchase price.  I guess Ill have to use other funds to fix it.

defiantly push back, you should not be expected to pay over FMV for a rental turn key or not. With that being said you should also look for some comps of your own to make sure the appraisal is accurate. There are plenary of good rental properties out there, don't let your emotions get in the way of sound investing

my biggest concearn is the addendum has a deed restriction clause that prevents you from taking a lien on the property for more than 120% of the sale price wich greatly effects my BRRR plan. If I pay $90k, put $50k into it the ARV will be about $195k but I'll only be able to refi for $108k (120% of $90k)?

Also they pay the buyers title fees if you use their title company,  is this recommended? Only a Special warranty deed is provided

I found an interesting Duplex Im going to bid on but its a Home Path property. I took my contractor to see the property a fall the numbers seem to work well both at a hold and rent with the BRRR method or as a flip. It seams like Homepath.com has a pretty strick process and a very unforgiving addendum.

Has anyone bought from them recently?