All Forum Posts by: Brandon Elliott

Thank you, Mike!  I appreciate your insight!

Hello all.  I’m a bit panicky today, as I’m being threatened with my property being condemned.

Long story short, my tenant is the granddaughter of a state representative (Alabama).  They’re saying they contacted the Birmingham city inspectors about my bathrooms being too small.  They are small, the property was built in the 1920s.

The city inspectors are (supposedly) coming out to inspect the property.

Are structural things like this going to get me in trouble with the city, or are certain things like this grandfathered in due to the age of the property?

I’m assuming a lot would’ve changed with building codes in the last 100 years.  Am I going to be on the hook for bringing the entire property up to code?

thanks for any advice!

I would run the numbers with a higher than usual maintenance percent and see if the numbers still work.  If they're still a deal to you (you should know what minimum metrics you want to hit), your biggest risks are the current tenants and the ability to do a cash out refi.  Are the tenants people that would pass your requirements?  Have you found a community bank, credit union, etc that will cash you out after the purchase?

Re-read what @Royce Talbo said for my opinion.  He nailed it.  The only scenario in which I'd do a TK is if I had much more money than time.  But personally I'm not to that point yet, and besides, I want to learn th real estate business inside and out.  You won't do that with a TK

I'll take all the cash I can get.  Like @Tim Lindstrom, I'm in acquisition mode.  My goal is to fully cash out of every property I buy (plus more if possible!) while making sure the property still cash flows $200+ after total expenses (no property management factored in that).  

I should mention that I'm managing the property myself.  This is a cash-saving measure (I have more time than money), but its also a skill-building decision.  I am eager to get some experience in both rehabbing and property management.  

Thanks for the advice @Michael Le

@Amy Zemser there's been some great advice through what I've read.  I would encourage you to source your deals through direct marketing.  You are interested in wholesaling, and it sounds like you would say that's one of your real estate strengths (or most knowledgable area).  Always try to play to your strengths!  As others said, you don't have to (and probably shouldn't) pass along your good deals to others simply because you've sourced them like a wholesaler.  But it's a great way to chase down good deals if you have the knowledge and drive.

Hey BP community!

Ok so here's my scenario.  Without boring you with the details, I have a single rental that I could do a cash-out refi on.  If I do, I'll have another down payment.  Cashing out and buying another property would increase my cash flow by $35/month and leave about $4k in my pocket (for the next down payment, of course!).  It seems like it would be more risky to have a second property if I'm not also substantially increasing cash flow.  Can any of you veterans help a newbie out?

Thanks!

@Scott Bean I'd choose the cash flow properties.  All day long.  That's not necessarily right, but its definitely my strategy.