All Forum Posts by: Aja Leafe-Hall

@Eric A. I hate to admit it, I think you’re right.:(

@Jon Crosby I am interested in your experience. So Evolve will do everything online, and you have someone else as boots on the ground. I am thinking of buying a property in my parents area, so my Dad will help host, do all the maintenance and troubleshooting. He could also clean or I could hire someone for $35/hr if I want a more professional job. I guess I like the idea of outsourcing the marketing and customer service to professionals as well. I do work with someone who has AirBnBs local to me and I see second hand, how involved that can be. But is it worth 13% to you? Do you think you have more occupancy because of it?

@Lucas Carl I read David Greene’s book on Long distance investing. Can you point me in the direction of other resources for this? More specifically for STRs? After talking to a full service property manager, I’ve learned my estimate for what the place can gross is low. Even as a LTR. So #1 is gaining more appeal....

@Teri S. Why would you completely write off STR from out of state. Property management is an option, and I have my Dad close by to maintain and check on the place. I realize that it is like a business because I have a job helping with AirBnBs locally, but if the income is high enough and the property is valuable enough would it not make sense to outsource the management?

@Luke Carl, 

The "septic" is a grandfathered in cesspool. There is no indication that it doesn't work, but I factored it in to my numbers to be safe. I talked to septic professionals about my last deal, and it was the deal breaker, so I know $15000 is what we can expect to pay in this area. Thanks for your insight.

Hi, I am a newbie and I want to invest in Barlett, NH (a great ski town which also happens to have an excellent school and low taxes). I live in Washington state for now and wish to invest some of my home equity. my parents are local to the Bartlett area and my dad is a contractor who is also willing to do property management. My first deal fell through and I’m back to the market looking for something else. My top 3 options are radically different and that frightens my spouse! So, maybe you can all help me sort my priorities: Option 1 is an adorable 3/1 1940 cape that buts up to conservation land. Sellers are asking 225K. The payment will be too high to lease, so I am thinking STR. It is in a great location and maybe will fit a niche for “antique home”, but the main reason I want this one is it would be perfect for my family if we decide to move there in a couple years. Option 2 is a 3 Unit Apartment farm house. Offered at 268K. The appeal is that 2 units can be leased to cover the payment and the third can be a STR that we can also use when we visit. I had almost wrote this one off because it is too expensive for us alone, but then I talked to another couple who may want to partner with us. So this could be a great deal that we get 1/2 of. Option 3 is a 3/2 New Englander (1800s) for 127K. It has been totally redone inside and covered with Vinyl siding and a metal roof, but still needs work on the exterior and possibly a new septic. Even with those costs, though, it will cash flow as a monthly lease, meets the 50% rule and, if we decide to move into it will afford us to live for $600/month, vs. $1200 to rent. Okay, so it seems like option 3 is the most affordable, but is that my best option? What do I need to consider?

Thanks for the input. I decided to lower my offer to compensate for a septic replacement or the sellers can give us more time to get a full inspection. We’ll see what they do....

Hi there, I am in a purchase and sales agreement on my first deal. It is a single family home in need of rehab in a rural area. I have been thinking of it as a BRRRR deal. I am using my HELOC for the downpayment and rehab. The owners are willing to finance until the work is done on really nice terms and I just discovered why: I am 2 days from the end of my inspection period and it has just come to my attention that the septic system (lack of info about it) is a reason that the sellers were unable to obtain bank financing. I am out of state and my dad is in NH trying to line up a septic inspection. We had to get an extension already for the inspection period because the house was improperly winterized and needed plumbing repairs before the inspector could go through. The sellers paid for that. Now they are unwilling to give us more time to do the septic inspection, because our closing date is set for two weeks from now. This is my first deal. I did not know a lot about what prevents a bank from financing property. I assumed that the stairways being too steep were the only (fixable) impediment here. I need to be able to refinance for this plan to work, because I am putting equity from my home at risk. Any aDVICE ON HOW TO PROCEED? THANKS

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

This is my first BRRRR deal. It is a long distance purchase. I'm partnering with my father who lives in NH. He is a contractor and will be doing the rehab and property management. I am financing this with the HELOC from my primary home in WA. The market growth estimate in the calculator is very conservative for the area. Zillow estimates an 11% increase in home value. I put in 5%.

I can offer 10% down with seller financing with a 15 year term and a buy out clause (as described in the calculator) or take out a conventional mortgage with 10% down. The property would be considered a second home with the latter option. Considering the plan is to refinance in a year, is it worth having a little negative cash flow in the first year?

What would the benefits of seller financing be vs. say an ARM?

What else am I missing?

Hi,

I have a question about partnerships, specifically family partnerships.

I'm looking at buying my first deal. It is a property in NH. I am in WA. My Dad found this deal. He believes it is a property we can acquire for under $100K and Rehab to have an ARV of $200K. I have run the numbers through BiggerPockets calculators and it looks like a solid investment in multiple scenarios.

So, I would finance the purchase and repairs. The down payment and rehab budget would come out of my home equity line of credit and I would get a new mortgage on the rest.

My father will do all the rehab and manage the property, physically. He does not have any capitol saved or home equity and would need some income while he does the work which would come out of my budget. So, considering he is the boots on the ground and found this deal for us, what is his reasonable share of the profit? I want this to be lucrative for my parents and partner on more deals with them in the future. I also have a personal interest in their building retirement income.

Any feedback? What have you done that works well for a partnership?

Thanks