All Forum Posts by: Chris Davidson

@Marissa Contreras what are you looking to do, and what is your plan? Are you going to hold till you die, swap till you drop(1031), or actively trade properties. How you operate your portfolio will have a bigger deal in the how you structure your company(s). If you are buy and hold not going to sell maybe you have a few companies and split different areas/ property types together. If you are doing 1031's having different companies could cause more issues and will make funding more difficult. If you are actively trading one company may be the best as it is more of a single business just over different states. 

For me I have different companies in different states, but that is what I like.

@Nithin Mathai if you are looking for a one stop shop not likely to get true experts in their field. However if you are forming a single member LLC I would find a tax person first as they can do this easily. However you will save some funds if you just register the LLC yourself. If you are looking at multi member and needing a operating agreement then reach out to some lawyers.

Cheers!

@Brandon Durant without knowing your market it is hard to say, but I would do a deep dive into the numbers and see if you can make it work. What are properties actually selling for vs what they are listed for, are there concessions? Are your expectations correct? Are you trying to cashflow with low down and buyers in your area are putting 20-30% down? Can you put 30% down and be in a area you know will do well and the numbers work. 

I see folks get caught up on cashflow and miss the point of investing. Most investors a couple hundred a month isn't going to change their life at all for the first year or two. However if you get started now and 5 to 10 years down the road the cashflow is up and the value is up all the sudden it is making a big impact on quality of life. Invest for you not for what others are saying invest for.

Best of luck and keep after it!

That is the hard part. REI takes time and capital. Sounds like you have made some really good progress in the last year and have the bug. I would focus on stretching the dollar and increasing your savings. There are other programs where you can do less than 20 or 25% for SMF, but you are gonna have to reach out to your lenders and see if you can make it happen for your area. There are even low down investment only loans. Just make sure you have the reserves or credit to cover possible issues. As you add doors the opportunity for more capx items to hit in the same month increases. Keep in mind these shouldn't be out of the blue you know when things are getting towards end of life so plan on that as well.

Keep up the good work!

@Jesse Englund-Rohlf not sure about the areas or permitting, but for sure know if you haven't bought yet the quickest way is to buy one with a ADU already there. Building opens up more issues than just buying as timeline is extended and more variables are present.

You can finance an ADU, the equity bump isn't going to appraise as much as market would likely deliver. Unless you find the perfect house (which there isn't) I would just look for a property with a ADU already or at least the structure if you really want to "add" value.

Best of luck and way to plan ahead!

@Paul Scammacca keep asking around, and see if you can get one with the current provider as they already hold 1st so they could be easier to get one through. However I would look at what you are trying to fund, and if you can get the funding else where. Like @Erik Estrada said you have 4 rentals likely with some equity and could tap into that easier. 

Best of luck!

 Hey Dario, that is great news, Another option to think about is the single wide on a quarter of an acre might be fencing off some part and renting that out as storage. Rent estimators can be good, but given it usually doesn't include any land or great on location minus zipcode they can be off a bit. Check with some folks in your area, and also see what others are going for. A simple way if there aren't restrictions could be slap another single wide on the lot if you have the infrastructure and zoning for it. If not Check out making an RV pad and renting that out.

Way to crush it man you are off to a great start!

@Dario Alburquerque saving the 40-50k each year may not be necessary if you are in the 150-300k range but if you are in a market where the properties you would be looking at are in the 700-2mil range it isn't enough. The more you save the better you will be off, and it will compound. 

Will the single wide increase your savings rate when you move out? If so that coupled with a house hack you likely will exceed your goals, but that just means you have more options.

Keep crushing it!

@Caeden Jacobs If you make good money why refi out? If you can buy the next property with a conventional loan I am not seeing why refi-ing out of the FHA is needed. Going up 40k or 30% was only possible in the last few years. Appliances and a roof aren't going to move a appraisal much as those are items that should be in working condition. Bumping rents by 30% could help you. What you didn't mention was what was the appraisal when you purchased did you get it below market or did you pay market. If it was worth 140 when you got it you don't have as far to go.

Best of luck.

@Davey McLaughlin renting by the room worked for me during the life phases where I would have a roommate. After that I didn't want it at all. I mainly rented to friends and would say did everything wrong/ unprofessional, but it was a means to an end. If you are wanting to rent by the room without living there look at separate locks, cleaning for common areas, strict policies on what and what not is allowed.