All Forum Posts by: Nicholas Weckstein

@Matthew Anderson great question ! I think a lot of it is really just getting in and getting involved. You’ll learn as you need to. Everything might go very smooth but maybe a hot water heater goes on a Sunday and you need to get some one in to fix it. You’ll find yourself your HVAC guy.

So I’d say 1) find a team of people to handle things you can’t.

2) make sure you know how your accepting rents and that you’ve made contact with your new tenants. Unless it’s vacant.

Really it’s all just about going through it and getting comfortable. House hacking can be a great thing. Personally I’m doing it right now and I have to say I love/hate it. There’s times where I feel I want more privacy than for my tenants to see me living my daily life. And there are times where it’s great.

Hope any of this helps and good luck and congrats !

Has anyone else noticed how so many sellers have absolutely no idea how to value they’re buildings correctly?

Things are only worth what people are willing to pay for it. In this game things are only worth what the bank says they’re worth (appraisals). So I base my formula on the banks formula.

I see so many buildings for sale where the owner isn’t subtracting 25% for maintenance vacancy’s and management.

It kills so many deals.

Great example. Was looking at a really nice 3 unit building. 2 apartments and a nice storefront. In the valuation he was asking a 10% cap. But never accounted that 25%. Needless to say my valuation and his were quite different.

Is it me? Or is it sellers thinking they’re stuff is worth more than it is?

@Jaysen Medhurst so sorry for the late replay ! And thank you for yours. I wound up moving on due to a few things. And some great points you made.

Ultimately taxes were too high. And the building for me was too rural. Basically paying for 2 acres of land that aren’t being used and as an investor I’m not concerned with 2 acres of unused back yard for a multi.

Hey everyone! Been a long time since my last post. Been working hard.

At any rate. I have an opportunity to house hack a deal.

Here’s the numbers lmk what you all think

Asking $245k

Purchase $219k

3 units total. 2 of which rented taking in $1300

The vacant unit will rent for $1350

Am considering FHA house hacking. Would only cost me 15k out of pocket w closing costs and down payment.

Live in that one unit for a year. Then move out and rent it.

Monthly payment break down goes something like this (30 years @ 3.7%)

P&I -$972.00

Taxes- $640.00

Insurance- $90.00

PMI- $90.00

Breaks down to roughly $1800 per month

Tenants pay own electric

It’s well and septic for water and sewer

Property has a 4 car garage as well. Really nice place. Think the 2 1 bedroom apartments rents are under value.

@Giovanni Luna the first red flag is what you said....”the company I’m buying from”. This sounds to me like a wholesaler kind of thing. And he’s going to tell you oh yeah it needs this and that. Ask yourself this question. If it’s such a good deal, and this company can source all the work for you. Why would they even bother to sell it to you? Just to make a spread ? Okay fine that makes sense. But I wouldn’t let them do all the contracting. Do your own. Find a good contractor in the area that’s reputable.

@Carly M. Similar happened to me. Fire them right away. Go to small claims court.

@Bo Banner very likely. In my experience with most banks they don’t look for u to have land lord experience when purchasing an investment property in the 1-4 unit range. They’ll want 25% down payment. Good credit. Pretty much the same as buying a personal residence with a few extra stipulations but nothing to wacky.

@Erick Gomez you are probably in the correct place. If you don’t want to deal with a realtor than advertise the portfolio yourself. Bigger pockets has a section for listing properties for sale. You can use Craigslist. Word of mouth. Investor meet ups

@Shane Bracewell maybe a hard money loan. Or a business loan.

@Derrick Burtle I’ve ran into this before. The 2 main reasons for this are 1( the obvious one), agents get paid on a percentage of sale price. It’s in their interest for the house to sell for more money. And 2, some agents don’t want to develop a reputation for submitting low ball offers. Get a real estate agent license. I have one. Low ball offers all u want then. PS I don’t think your offer was a low ball.