All Forum Posts by: Brandon Sok

I WaveApp to track income and expenses. It is free, very customizable, and spits out reports for the CPA. It also can be tied to credit, debit cards.

@Soh Tanaka, with WaveApp I split my mortgage payment every month into principle, interest, and taxes/insurance.

Proud owner of an illegal duplex! 

We started it as an SFH house hack that is now a duplex since we moved out. We were able to do the loan and insurance under that primary residence then covert to a rental dwelling. Only risk would be they tell you to file the proper paperwork right?

@April Littleton I used Narrow Path Plumbing out of Xenia. They did great work. I'd say they were a little on the expensive end but I trusted them more than the other plumbers I got quotes from. The first unit took us about 45 days, The other side took us about 5 months. We took longer on that one because we were moving into it and it needed more work. We did 20% on an FHA. Thanks for your kind words and best of luck on your journey!

@Andrew Lake we paid cash for the renovations. We rehabbed one side of the duplex first so that we could rent that out and start making money. Then we renovated the side that we eventually moved into. 

I avoided the 203k because (from my understanding) you have to use a contractor to get approved for the loan and use the funds. Since I was doing the work myself, I didn't go that route. If you're going to be using a contractor then I think that can be a great option.

@Kyle Vinter Bellbrook is great! I don't invest Dayton yet but have been doing research on certain areas of town that would be good. Do you live/invest in the area?

@Kevin Zolea The hardest part? That's a tough one. Here are a couple of thoughts:

1) If you're doing this with a spouse/partner... communicate expectations early and often!! Both of you need to be on the same page because things will get stressful. My wife and I can laugh now, but we weren't laughing back then! haha The relational stress was pretty difficult for us (cash flow over time has definitely helped!)

2) Borrow tools and labor from friends/family if they're willing. Rome wasn't built in a day and no one did it alone either! This will help you save time and money. The other benefit of getting friends to help, they can give advice and pointers. Projects get expensive if you have to burn through lots of extra materials and tools because you didn't know exactly how to do it.

3) Prepare for and expect the unexpected costs! Add 15% cushion to your rehab because something will happen. Plumbing was ours. Everything passed inspection then 2 months later we had to replace every inch of plumbing.

I hope that helps! Best of luck to you!

@Kevin Zolea Thanks! I did all the work (with friends chipping in when they could) on this one except for the plumbing. We didn't have the money to be able to hire a contractor, especially after we hired the plumber, haha.

Thanks for the kind words everyone! @Zeke Liston @Remington Lyman @Alex Olson @Shane Cummings

@William Walker, I'm actually torn on this one. If I were to refi I might not pull the full 80%. I'm stuck between Refi or pay down the mortgage to open up more cash flow. I only owe 60k and I have access to relatively cheap hard money for future deals so I don't feel the rush to pull capital out to use elsewhere.

I have another duplex and SFH that I do plan to refi at 80% or 85% depending on the lender.

Small multi-family (2-4 units) other investment.

Purchase price: $89,000
Cash invested: $48,000

Duplex that we House Hacked. Put 20% down + 30k in rehab expenses. Cash flow is $800 per month. ARV is $170,000. We haven't fully executed the full BRRR but are considering.

What made you interested in investing in this type of deal?

I wanted to get started in REI and also reduce living expenses. This duplex checked both boxes.

How did you find this deal and how did you negotiate it?

I went to a showing when the house was listed at $139k then waited 1 year till the price eventually dropped to $89k. My wife and I offered that day.

How did you finance this deal?

FHA 30yr at 3.75%

How did you add value to the deal?

Completely rehab of the interior of the house.

What was the outcome?

Great first home for my wife and I with continued cash flow since we've moved out.

Lessons learned? Challenges?

Always add a 15%+ cushion to a rehab project! After passing inspection we had to replace every inch of plumbing in the house. Also, if house hacking with a spouse, make sure you communicate expectations early and often. Stress adds up so it is important to be on the same page.

Thanks, @David M. @Cameron Tope @Tom Shallcross! The terms are $205k at 7% year 1. 8% years 2 and 3. Option to renegotiate after three years if needed. I plan to be out within 3-6 months, depending on the bank's seasoning policy and appraisals. 

The promissory note says: "On or before May 1, 2023, Borrower shall pay $198,290.00 in one lump sum." How did they get that number?