All Forum Posts by: Callaway Pate

Hey @Eduardo Brito-Garcia, I believe you should start by calling your bank to get an appraisal. Your equity will be the difference between your loan payoff and the appraisal amount. If your property has appreciated enough you may have be able to get a HELOC. If you did a value-add possibly a cashout refi but maybe not a great idea right now with the interest rates.

Best of luck!

Hey @Sebastian Roy, it's a hassle but it'd may be a good idea to an eviction process. You are right that letting your tenant pay week to week counts as partial payment. This means that in court they'll consider it as continued tenancy and make it harder to evict the person. The sooner you cut ties the less of a headache you'll have in the long run. 

Best of luck!

Thanks for the responses guys! I didn't know about these systems in place for government employees. But @Thomas Nordberg, I read that there are DoD preferred lodgings that they require that TDYs use unless they are unavailable. Is it common for a majority of TDYs to stay in the DoD preferred lodgings? I'm particularly interested in catering to military personnel because the area I'm targeting is particularly close to both a naval and air force base in DC. 

Hey @Carlos Lopes, I see what you're saying. Buying a property and the rent makes the exact amount to pay the mortgage and other costs at first doesn't cost you anything. But you don't have any hedge against changing market conditions. What if in 5 years there is a downturn and rental rates decrease? You're losing money. This can also work in reverse but with other properties out there that can cashflow there's no reason to tie up money and effort in a property like the one you described. To continue growing it'd probably be best to move on from that sort of deal. 

Best of luck!

Hey @Alexis George, I think it'll depend on the number of units in the property. The more units you have, the less risk you're exposed to if one of them is vacant. $100/door profit for a 10+ unit building gives you a decent hedge against the mortgage payments. But if you're looking at a 5 unit building perhaps you'd seek a larger monthly profit than $100-200/door to make up for the greater risk associated with vacancy. 

Best of luck!

Hey BP family!

I am curious about different medium-term renter pools in the DC-Metro area. It's common that people bring up travel nurses and insurance placements, but in the DMV are there any other occupations or scenarios that could an MTR could curate towards. For example, has anyone had government contractors or military personnel in their MTR spaces? Due to DC being a city with a large federal government presence I wanted to know if that presents opportunity in the area. I appreciate any insight on the topic!

-Callaway

Hey @Marcus Slaughter, the IRS 99% of the time won't take issue to this as a unit sitting vacant while it undergoes repairs at it is nothing new. Additionally, your remodeling expenses should verify this. If you're not reporting any rental income and it can be verified you'll easily be able to justify it with them. 

Best of luck!

Hey Mitch, 

There are real estate opportunities everywhere and it'd probably be best to prioritize your ideal lifestyle with your girlfriend and figure it out from there. I'd caution you to be realistic about the strategies available to you in particular markets. In these smaller southern cities, cashflow will likely be quite strong but with lower property values you may not see as much gain on the appreciation side. However, there are always outliers and you can find them. I'm sure you'll make the right call.

Best of luck!

Hey @Account Closed, I agree with what the rest of the people on the thread are saying about negative cashflow. However, If you are inclined to purchase the condo I would consider more creative revenue streams like short/medium term rental (possibly higher rents), or curating the space for photography, podcasting, etc. The condo might not work specifically as a traditional house hack but that doesn't mean you can't make money in the property another way. I'm just throwing out ideas but I'm sure you'll make the right call.

Best of luck!
 

Hey @Eugene Carson, these are interesting questions.

I'd first highlight the fact that cashflow is difficult to achieve in the DMV due to the high property values. I know investors looking for cashflow usually take there investments up towards Baltimore where property values are lower and you can get higher CoC. The DMV is a big equity market where if you find under-valued property, renovate and put in place good tenants the property value can skyrocket putting you in a good position to cash out.

To your question about areas of the DMV to avoid, there really isn't an area that is off limits. Many people would say that East of the River (SE/NE DC) are too risky due to crime rates; however, it truly comes down to your tenant screening and management. Additionally, there are slightly more bargains in that area as its reputation often scares off investors. It may be a bit much for a first property but I think is worth considering.

Best of luck!