All Forum Posts by: Connor Maloney

Welcome @Ron Healy!!  Always good to see more investors in the Anchorage/Alaska market!

@Kevin Grinstead, thank you for the information and suggestions.  I would greatly appreciate if you could give us the contact of your realtor in Fort Collins!

Yeah, that sounds like a good idea @Account Closed

Thanks for your input @Ralph Smith, but what do you mean by putting his rental under a personal business and having the mortgage there?

@Bill S., I only own multifamily properties, but the idea of a 5 BR rental sounded bad to me as well or at least difficult to get the best bang for your buck. Why do you say that you are not a fan of HELOCs when there is a potential for rates to rise? I am a HELOC newbie but thought that I heard they normally come with variable interest rates. Is that why?

@Todd Richmond, thanks for the info and advice.  I didn't even think about probably not being able to use the rental income until he files 2017 taxes to help him qualify.  

@Dan Mackin, thanks for the info.  I totally forgot about the tenant laws in Colorado.  I remember when I was living in Boulder, I think the law was that no more than three people from different families could live together under one roof.  That may definitely pose some challenges for renting to students!

Thanks for all of the great info guys!!  I really appreciate it!

Hey guys,

My brother lives in Fort Collins, CO.  He is moving to Loveland, CO for his job.  He currently owns his house (5 BR, 3 BA) in Fort Collins that he has about $100,000 of equity in from his payments and appreciation over the past 5 years.  

He wants a rental, but owning a rental in Loveland makes more sense to him because he will be living there.  However, he is not sure if it is a good idea to sell his house in Fort Collins to buy a nice house in Loveland and another house to rent out in Loveland.  

Does anybody have any advice for my brother??

I do not know how good the rental markets are in Loveland or Fort Collins, but I do know that property values are very high in Colorado right now.  So I didn't think it would be a good idea for him to sell right now.

To me, it makes more sense for him to rent out his house in Fort Collins (not sure how well a 5 BR, 3 BA on the edge of town will rent) and then take out a home equity loan to use as a down payment on a new house in Loveland.  Then, when prices come down, buy another rental in Loveland.

Thanks for any suggestions!

@Jordan Sutherland, first of all, congratulations on your success thus far.  You are killing it!!  Second of all, there is a lot to be said about happy wife, happy life, especially if her full time job is being the stay at home mom.  I'm not sure what your monthly income is, but I know from experience that it will be worth it for you to buy the car.

Another good idea said by somebody above was to buy another rental property to increase your monthly cash flow to cover some/all of the car payment.  However, that is highly dependent on your current life situation.  Sometimes you just have to bite the bullet.  

A good exercise may be to think about "how you can afford it".  Maybe there are some ways that you can increase your cash flow from your current rentals or some other business venture.  Maybe become a part time Uber driver.  

Either way, good luck!

@Ralph R., good on ya mate!  You just blew my mind!  lol

@Adrian Fajardo, I'll PM you the contacts I have.

Hey @Adrian Fajardo, you might want to look into getting an AHFC rehab loan as well. You can talk to someone at Alaska USA for details on the loan. It is 10% down. I have a friend that is finishing his rehab on a duplex in Fairbanks right now. It sounds like a good loan program. You don't need a General Contractor (like you do for the FHA 203k rehab loan) and you only need one bid for each part of the work (electrical, plumbing, etc.) versus 3 different bids for the FHA 203k rehab loan.

This loan may save you on holding costs as well. Here in Anchorage, HML's (Hard Money Lenders) generally charge 5 points (5% of purchase price) up front and 12.5% interest on interest only loans (take loan amount times 12.5% and divide by 12 to get the monthly payment amount).

Also, $124,000 is a very good price for a duplex in Fairbanks from talking to my friend, so I would suggest performing a very in depth inspection of the property since it has been on the market for a year already at that price.

Good luck!

-Connor

Nice job!! Also, nice job analyzing the numbers and using them to make good decisions on what to fix up and not fix up. The cool thing about BRRRR is that you don't have to fix it up as nice a flip house!

And thanks for sharing your story in such a simple format!!  You are an inspiration to all of us!  Keep it up!

Nice work @Chris Pohlson!! I hope to do a BRRRR soon myself!