All Forum Posts by: Chris Sellers

David,

Congratulations on the properties!

I'd calculate the ROI where you live and take the best of 1 vs 3. If it's close, go with 1.

Good Luck!

Chris

Adam,

It's possible you could make it work if the next lender didn't inquire where you got this $200k, but most would.  They want to know if it's borrowed because they want you to have some skin in the game (10-30% usually).

If you're new, I'd focus my first deal to be a little smaller and not be so leveraged. You can get the LOC secured (but not withdraw) and be real picky about finding a property with meat on the bone. A good example might be a property with rent potential of $800 but smells like cat pee and looks horrible. You buy it for $40k, put $10k and some sweat labor into rehab, rent for $800. After a few months of seasoning, go to a lender and cash out 70% of it's value (maybe it's worth $80k). Now you pay back the higher LOC with the $56k from the secured loan and go to Disney on the remaining $6k ;-)

Then do it again, but go a little bigger.  

Good Luck!

Chris  

Ralph,

I'd guess you're required to pay if it was the winter and the heating system broke, doubt you'd need to for AC.  AC is a relatively new invention, people someone made it for > thousands of years without it.  Most reasonable people wouldn't got to a hotel vs spend a night in a non AC house if it was their money.  I'd say you're off the hook; now just decide if you want to pay or go half to keep them happy.

If you have a lot of units, you might want to invest in a good, used window AC unit (Craigslist $50 special).  I did that several years back and it comes in handy in these cases.  Just loan it to the tenants until the AC man can come.  

Good Luck!

Chris

Thanks Anssi!  I look forward to connecting.

Thanks Don!  I've connected with Bryan; looking forward to learning from him.

Thanks Bryan and David!  I look forward to connecting.

Nick,

Great problem to have. I think you're looking at this the right way. $300/mo cash flow for a $325k property isn't ideal, but might be worth it if it's appreciating. A third option is to HELOC your $120k equity to get $85k or so to invest somewhere else. Keep your place until it appreciates more.

Good Luck!

Chris

Iain,

I would love to have one place where I can get all of this accurate data.  If you build it, you'll get paid.  Zillow has a lot of it, but the accuracy is shaky.  Today, I use Zillow or Realtor.com to start.  As I zone in, I have to go to the municipality website to be sure the information is accurate.

Good Luck!

Chris

Mary Jay,

I agree with all the above posts (Josh’s comments so true).  I still like D’s for the cash flow and crazy low prices you can get them for sometimes, but they are a hassle.  For the last few years I’ve had a property manager who is the D property master.  He gets them to pay, handles the chaos and keeps it all in check.  I’d probably have lost my patience and moved on  toward the lower profit, less hassle stuff if it wasn’t for him.  If you’re in D’s, you need skilled property mgt to make it work.

Good Luck!

Chris

Hello!

I'm looking for some residential construction intelligence in the Charlotte area.  Specifically the current competitive rates for new construction trades and materials (e.g. foundation, framing, plumbing, electrical, drywall, trim carpentry, painters, tile work, brick layers, roofers).  Also some tips for good / bad subs you've experienced would be great too.  Perfect source is if you're a current Residential builder, Supt or PM for a builder who wants to get into investing in rental units.

I can trade tips / guidance on residential rental income and/or investing in real estate with a self directed IRA. I don't have any earth shattering secrets you can't find in books, but I can share actual experiences, timelines, prices, rehab costs, insurance costs, rental roles, property management and tips for how I've created a 19 unit portfolio worth almost $1M and generating over $100k annually inside my IRA, starting from a relatively small initial investment.

Maybe we could swap 1-2hrs each?  Over phone / skype works for me (in person ok too).  

Thanks!

Chris