All Forum Posts by: Daniel Kaplan

Just focusing on growing. Don't dread the past!

I'm 20 years old and managed to do a BRRRR while being a college student. The number one thing I recommend is finding a mentor - someone who is seasoned and has all the connects in the area. Due to his expertise, I had a seamless transaction and am now cash flowing with a 30% coc alongside $10,000 in equity gained from the rehab. Best of luck!

@Chris Seveney Thank you so much for your input, I really appreciate it. The cash flow proposed in the model is with the in-place rents. We made sure to budget a lot for repairs/capex as these are in rougher areas.

In regards to the property manager, we are going to be working with the one who is currently managing the units. How should I be vetting the property manager on the phone to make sure it is managed efficiently?

Really appreciate the help!

@Tim Delaney Hey Tim, thank you so much for the response! Sorry for the confusion in copying over the excel model, but the portfolio purchase is $230,000. 

Number 1 - I definitely agree that I should go more in depth on the expenses.

Number 2 - that was just a rough estimate from what one of my buddies told me. I should definitely dig into it more!

@Ryan Thomson Could you make the argument that I could get another FHA loan if I was forced/choose to relocate?

@Robin Simon Thank you so much for the input. I live 2 hours away from the properties so it shouldn't be too big of an issue. However, the biggest concern I see is that it is in a high crime are. 

I spoke with the in-place property manager and she said that they have been paying on time. What other due diligence do you think would be beneficial in this process?

Once again, I really appreciate you taking the time to share advice!

Thank you so much for taking the time to write such an in-depth response @Marcus Auerbach - I really appreciate it.

These properties aren't in the best location in Milwaukee. Definitely some high crime areas. However, in looking at the comps, I believe that they definitely defend the purchase. One of the main reasons I am so attracted to purchasing this portfolio is that these units are all occupied with consistently paying tenants.

What else do you think I should be looking for in determining the catch/catches?

I really appreciate the help here.

@Tyler Haanen Great point - definitely should set up a call with her prior to closing

Hey everyone,

I am graduating from college in 2 years. Immediately after graduation, my goal is to perform a house hack on a 3-4 unit. After a year of living in it, I want to rinse and repeat as many times as possible. However, as I was thinking about the strategy, a big issue came across. Let's say I am able to get a 96% LTV on the first quadplex and after a year that LTV goes to 93% from the equity gained. Do I need to refinance into a conventional loan in order to qualify for another FHA loan?

If the numbers work the numbers work. However, a big consideration is scalability. If you intend to refi and continuously house hack your way to financial freedom, make sure you will still positively cash flow. Make sure to have a clear vision on your goals.