All Forum Posts by: Billy Daniel

Congrats on taking the hardest step (IMO)!  That's awesome!

Definitely get your inspections ordered and completed.  Make sure you understand the full picture of the property before you go to the closing table.  I also strongly recommend a land survey as well.

You'll also want to start shopping property managers so you can turn the property over to them as soon as your repairs are completed.  This can take some time as PMs can be difficult to reach, so don't delay.  

Ask your local contact for references for tradespeople.  Unless you plan to travel and do the work yourself, you'll want your contractors ready to go as soon as you close.  Remember that after closing, every day of vacancy is money out of your pocket!

Don't forget about utilities.  So many people let them slip their minds, then they try to go to work only to find the electricity has been shut off.

Good luck and I look forward to seeing updates!

Start with education.  Books, Podcasts, and Youtube videos can provide a strong base of knowledge.  There are strategies and tricks out there you probably never would think of on your own!

After spending some time learning the industry, think about your goals.  Many people skip this step, but it is crucial to your future growth.  What do you want to get out of real estate investing?  "More money" is not a good enough answer!

Analyze, analyze, analyze!  Start running analysis on properties, even if you never buy them.  This will help you get familiar with the market and the numbers at the same time.  When in doubt, jump on these forums and ask for help!

Finally, TAKE ACTION!  This is the hardest step for beginner investors.  You have to pick up the phone and call a realtor or lender.  When you do, you want to be able to clearly explain your situation and your goals.  Saying "I want to find a good deal" is not going to cut it....thats what everybody wants.

Good luck and congrats on the purchase of the condo!

I noticed a couple of things you may want to revisit just glancing through.  I doubt insurance in Florida is going to be $100/month.  I don't own anything there, but that is cheap (and I live in a place where natural disasters are rare!).  You also may not be able to get a 30-year loan on the property.  You should run numbers at 20 years unless you have access to someone who has already said they would give you 30.

Buying from a wholesaler is risky for your first investment. If you do, make a very thorough analysis. Unscrupulous wholesalers will inflate the ARV and deflate the estimated repair costs. Good luck!

 I'm not sure about the user limit.  I want to say you can add another for free, but don't quote me on that.  I'm the only person on my account.

Hey Dustin!  I know the property you are referring to!  When it comes to house hacking, you have to start with what you are wanting to achieve long term.  While you are occupying it, the cash flow may not matter as much since you are just looking for a subsidized mortgage payment.  However, eventually you will move out and you want to make sure the property will make sense as a pure investment.

Good luck with your decision!!

If you're going to tell me about the number of doors you have, you better also tell me your personal profit/door.  Otherwise, I'm inclined to believe you made some bad purchases....

Maybe I'm a little too cynical?

You may need to have the lines scoped and tested.  If it's not an issue with the plumbing, then the tenants may need to start paying.  Plumbing shouldn't keep backing up for no reason....

Are there small kids in the house flushing toys?  Are they flushing baby wipes?  Go over some of these things with them.  They may be embarrassed if they are causing it or they could be completely clueless about it!

I use Buildium and I only manage 2 units.  We intend to grow, but I've heard from others that Buildium is best for smaller portfolios.  A lot of the stuff I need to do is automated.  I could certainly get by without it, but I want to be familiar before I add several units.

There are several out there and you should look into them to find one that fits your needs.  However, if you decide to go with Buildium, hit me up and we can both get a discount!

I'm a realtor/investor in Arkansas. The laws typically favor the landlord and so do the property taxes, lol. I don't think it's REI paradise, but definitely worth a further look. Shoot me a message if you have any specific questions!

The 1% rule is slowly becoming archaic.  It's not impossible, but it is very difficult to find properties that meet it.  

As for finding a property, make sure the property cash flows with all units rented (i.e. after you leave).  This is key.  A house hack isn't necessarily about having no mortgage payment, just a reduced one.  Another important thing to remember is that list prices are suggestions, not rules.  If they are wanting $285k, but the numbers only work at $250k, write the offer for $250k and see what happens.  Don't just throw out low ball offers to see what sticks though.  Run your analysis and do what makes sense for you!

Good luck!