All Forum Posts by: Benjamin Aaker

Yes, if you get an FHA loan on a multifamily (2-4 units) and live in one unit (house hacking).

Don't forget about the equity you are building in each of your properties. That is often overlooked by people when judging how good of an investment is. I structure my investments to have lower cash flow and more equity build. This doesn't make a lot of money right now, but will in the future. That being said, multifamily has better economy of scale, but still you cannot expect big cash flow right away.

What has worked for me is to talk to the commercial banker at the bank that holds the mortgage on my investment property. Ask for a commercial line of credit. If they have the mortgage, they are more likely to offer the LOC.

First decide how active you want to be in your real estate investing. REITs would be on the passive end, owning and managing with a property manager is in the middle, owning and managing yourself on the more active side (I use these as the practical terms, not the IRS terms). As previously posted, do a lot of research first to find your niche. Meanwhile save as much money as you can for the down payment and definitely pursue the VA loan.

I'm also a fan of using an LLC. However, if your son is just going to be doing this one investment, having it in his personal name makes the loan and legal aspects much simpler. Having a quality lease, treating people right, avoiding negligence, and having a good hazard policy with umbrella coverage are necessary. The LLC helps avoid spilling over a loss into personal finances or other companies. If your son has low net worth and no other companies, the LLC is not a huge benefit for him right now. Finally, moving it over from personal name to an LLC can cause complications with the bank.

Hi Drew and welcome to the forums. I'm a former resident of Dallas and think it is a great place to invest. My advice is to get an agent who works with investors and look for the more heavy value-add 4 plexes. Live in one and fix up the other(s). That's the most efficient way to start out while getting the benefit of the low down payment.

Nice work on the $40k profit. More importantly, you illustrate why it is a great idea to have a backup plan. The rent didn't get what you want so you pivoted to selling for a profit. Congrats!

Use the NOI, but take care using the pro forma numbers. Do your diligence to arrive at a decision.

Hi Evan and welcome. Congrats on that nice cash flowing property!

It is not affixed to the property, so is personal property.

Practically speaking, it doesn't seem like a lot of work for you if you end up keeping them and enforcing the agreement will cost you much more. I think a polite reminder to the seller is your best option. If that doesn't work, you could sell the pots and recoup some money for your time.