All Forum Posts by: Conn G.

Ask some questions where it might put the person in an aggressive state. If they give you the right answer, it disproves your theory and trains them to make the right decision if that were to happen in real life.

@Derick Hanna 

That's a great idea. When finding a 203k loan lender, google 203k endorsement summary. There you will find the lenders that do the most 203k loans in your area. Once you got the lender, ask if they recommend any 203k contractors that they worked well with. 

I had a similar situation with my househack. Numbers aren't great when living in there but it will cash flow after renting it out completely. With FHA loan and 3.5% down, you essentially get about 50% return on money with principle paydown. That well enough kept me motivated during negative months.

With inherited/long-term tenants, I always view it as if the loss to lease is greater than the vacancy cost, then you're losing money. Keep the rent below market to still make it attractive for tenant but keep an eye on loss to lease.

House hacking near your work. I did my first house hack last year on a quadplex that's 5 minutes away from my work. This allowed me to have a savings rate of 60-70% on my post-tax income. Plus, with close proximity to work, I'm able to focus my time on more important activity than driving mindlessly. 

@Marc Rice he did my FHA as well this year, we locked in a rate of 2.375% with 30yr amortization. Overall great process working with his team.

With 401(k) match, you get 100% return on your investment which is hard to find in real estate. A 401(k) match is also completely passive while real estate is not all the time. I do my company match but never go above the match % when contributing. All other money is invested towards REI. Plus, if you ever leave your job you can transfer your 401(k) to a self directed one and invest in real estate.

Marcus & Millichap and IRR is great for past performance reports and future predictions in the commercial sector. I also follow Zillow, realtors, and other websites for market trends and insights

Yeah, I'm in a owner occupied 4-unit. The upstairs tenant fell asleep with the bathtub running and left substantial water damage in my lower unit. Since I have home insurance on the property and the upstairs tenant does not have any renter's insurance. So essentially the insurance company is going to demand all costs from him.

@Nathan Gesner bringing up this old thread, but I have a question. What is the best way to require renter's insurance with inherited tenants? Is this a separate signed agreement where if there is no proof of insurance after a deadline, owner can enforce a $XX fee or a termination of the existing(inherited) lease and resigning signing a lease agreement that has it required?