All Forum Posts by: Alecia Loveless

@Dave Foster Hi Dave, thanks for the information. As I mentioned above I will consult with my accountant who has a great amount of knowledge about these things. He will point me in the right direction. If I have any further questions I will reach out! Your information was most helpful. Alecia

@Scott Wolf Hi Scott, Thanks for the information. I will consult with my tax specialist right away as I have some more time till the house will be done. He is quite familiar with these things and can put me in touch with the right people for specialization. Thank you for your help and if I have any questions I will let you know.

@Michael Hayworth Thank you for your opinion. As I mentioned above I’m considering both options still. I was preparing to email my Realtor about potentially selling when I received an email from him about just the same thing.

I emailed him back and provided him a comp which he hadn’t specifically thought of that house on his own but now he has looked at it. He said let’s sell this one and make you a bundle and go buy another Multi!

Realistically the house is probably 3 weeks away from being ready to have the realtor walk through it as my contractor also plows and we tend to get a fair amount of snow. But he’s making great progress.

I’ll keep you all posted.

Thanks!!

@Will Fraser Hi Will, thanks for the input. I am definitely considering what you said and believe I got this property for a steal. Once it’s done as I mentioned the total repair cost is very low. I’m very happy with it and believe it’s a sound investment.

The only real reason to even consider selling it would be to purchase a multi family that would have greater cash flow than this one does.

I'm closing on a 4-plex in two weeks and the seller has expressed interest in selling several other multis that he owns. A nice profit from this SFH coupled with the money I have from a sale late last year would likely get me another 4-plex. And the cash flow from two 4-plexes would be better than cash flow from one SFH. As would all of the other benefits that come with long term real estate.

But I do have an open mind and like this house very much as an investment vehicle.

@Gabriel Elendu Hi. Would these types of meters work in buildings such as a duplex or a small 4 plex or are they specifically designed for mobile homes? Thanks!

@Michael Loza Depositing anything will trigger the bank in regards to a mortgage. My bank requested a bank statement showing proof of funds for my down payment for a mortgage and it showed the deposit from the sale of a property which was quite large which triggered them to ask where it came from. I had to show the closing statement from the sale to prove the funds were not a gift.

I bought a 3/1 1300sq ft house for LTR in May 2020. Due to personal issues we are completing the renovations now, 9 months later. I have 3 potential tenants lined up.

However in the meantime my market has exploded. Similar 3/1’s that are smaller, not identical, are selling for $269,000. I haven’t consulted my Realtor yet to get a market analysis but I’m confident my house would sell in the $209-249,000 range.

Not taking into consideration anything other than cash flow it would take me close to 35 years to earn this type of money out of this building. I understand there would be repairs, vacancies, maintenance, and of course I’d be earning depreciation.

I don’t see our market sustaining a much higher price for “starter” homes because the average salary in my area is still between $13-17. Typically any home in my area under $300,000 is under contract within hours of going on the market unless there is something wrong with it and then it might last a couple of days.

Would you keep this asset knowing the market price may crash and that you would earn a solid $3,600 cash flow up to $5-6,000 a year over time, or sell next month and realize an approximate $100,000 gain that could be 1031’d into something larger. I have something in mind that I believe I can get the owner to cooperate on.

Thanks!

Alecia

@Michael McCall My first investment deal towards financial independence was a duplex next door to my business. I realized it had come on the market for $179,000 and contacted my Realtor. He told me it was under contract.

About a month later my Realtor called me to tell me the duplex had fallen through and the price had dropped to $149,000 so we went and looked at it. After the showing he disclosed to me the first offer had fallen through because of the home inspection. But that he didn’t know what was wrong.

The next day I called him back, after a discussion with my parents who had agreed to finance the deal for me, prepared to make an offer and he told me it was under contract again

About a month later my Realtor called me again to tell me the duplex was back on the market and he’d spoken with the listing agent and the foundation needed $75,000 worth of work and he could get me a copy of the home inspection. I looked over the inspection report and set up

An appointment with a foundation specialist who crawled into the pier and beam foundation and told me the foundation was fine and he’d recommend spray foam insulation and a heater to prevent any more heaving of the ground during the winter which should be about $8,000.

I offered $99,000 because it “needed $75,000 worth of repairs” and we settled at $109,000. I’ve put about $23,000 in renovations to one side and rented it and I live in the other side. The tenant pays 90% of my bills.

I’m in the middle of buying a gorgeous 4-plex. My agent indicated to me that he believes the Seller wants to sell other properties from his portfolio in the near future.

The building I am buying is the nicest investment property I’ve seen in the 20 or so years I’ve been involved in real estate. I would be very interested in buying more of this Seller’s property if the numbers work and they are in good shape like the current one is.

The Seller’s agent is from 45 minutes south of the property and isn’t a big time realtor so I’m guessing either the seller bought something from this agent or knows him personally. There would be no other real reason for him to use this brokerage to sell his property otherwise.

Do I have an ethical reason to go through my agent to let his agent know I am interested in future purchases to try to buy before the property hits the market, or can I send a letter to my seller letting him know I’m interested now before my sale goes through or directly after bypassing the realtors since all of this is just hearsay at the moment?

Thanks!

Alecia

@Andrew Simms I don’t remember what it was because it was about 12 years ago but I got waterproof/spill proof bed bug repellent mattress pad covers for my bed and breakfast and never in 11 years had a bug problem or a stain on any of my mattresses.