All Forum Posts by: David Ripplinger

@Marco Morkous If you're doing buy and hold, you'll want to find a distressed property you can add value to, then take out a cash out refinance (usually up to 75% of the after repair value). Use that to repay the short term loan from the private or hard money lender, and now you have a cash flowing property that pays for its own mortgage.

@Bill Boudreau Yeah, I'm happy to share! It's a duplex in the neighborhood Christian Park. We (my brother and I) bought it for $65k plus closing costs from Mainstay Property Group, which is a pretty impressive wholesaling operation run by the Manship brothers. The ARV is estimated at around $100k, and this property strangely needs very little work done. We're planning on putting somewhere around $2500 into it. One side is currently renting for $500 and the other side is vacant. We bought with my cash (which I got from taking a HELOC on my primary residence), and we're going to BRRRR it.

I've decided to start out of state. Before you decide, I recommend you read Long Distance Real Estate Investing by David Greene. Then you'll have a better idea whether it's the right strategy for you.

https://youtu.be/aqAUmgE3WyM

Duuuude, you just described what I did to a T!!!

I'm a first time investor, doing long distance, and my first property is a duplex rental! What's more, I'm from Layton UT too! Seriously, we should meet up sometime.

I'm partnering with my brother to invest in the greater Indianapolis area. That is one of several midwest cities that are well known on BP for having a lot of deals and great networks to tap into of investors, deal finders, rehabbers, and property managers. We actually just bought our first property today.

I will second what has already been said on this thread, that David Greene's book on Long Distance Real Estate Investing is a must-read. I also read his other book on the BRRRR method.

Regarding house hacking, it's doable in most markets, even in Utah. You just need to wait for the right deal. My brother is actually preparing to house hack right now. He is converting his basement into a mother-in-law apartment. House hacking can be beneficial even if you don't cash flow positive. Think of it this way. If you don't house hack, you still have to live somewhere, so you have to pay rent or a mortgage. But if you also rent out part of your house/property, you have now effectively lowered (and possibly zeroed out) your mortgage payment. In Utah, it's really hard to find something like a 3-plex or 4-plex that's worth house hacking in, but they might exist, especially if you use the 203k loan trick (I hear it's a huge headache, but if you have the stamina for it, it gets you into deals nobody else can get into). What may be a more common candidate for house hacking is a house that already is or could be turned into a mother-in-law apartment.

Cool post. It reminded me of Seth Meyers's fake movie trailer, Boston Accent.

"Bro, I know where you live, bro. And bro, I know what you drive, bro. A Nissan Maxima! Bro!"

@Michael Behrens I'm fairly new on the REI scene, but I now have two properties under contract in Indiana with my own money and I'm aggressively expanding my network of potential private money lenders amongst my family and friends so that I can maintain a high velocity of acquiring properties. What I have been telling them is that for a given property, if they fund purchase and rehab, I get them a flat 10% return on top of all their initial capital back once the project is done, which usually only lasts a few months. As I have researched what terms other people do (looking in these forums) and as I have talked to some other investors, I have seen a wide array of terms everyone likes to do on the private money notes.

Airbnb rate will be roughly in the range of $105 a night for a studio with one bath.

@Hans Christopher Struzyna Man, I would have replied sooner, but Bigger Pockets doesn't automatically notify me to updates on my own post. I have to click "Follow", which I sometimes forget.

This will be an Airbnb, so I want the bathroom to be fairly high end, but not ridiculously high end. I want a GC so I don't have to manage it. This property is in the Hoover Foster neighborhood.

I have a potential deal in Oakland in which I'd like to add a new bathroom if I buy the property. But I don't normally invest in the Bay area, so I have few connections. Any recommendations of contractors that I could work with?