All Forum Posts by: Devin Stott

 That's a good idea.  I've looked at doing that with my brother as a partner.  May work.  I'll look into it.

 Hi Marland,

I agree with you about the heloc but the money left in the deal would be the cash money.  The tenants are in the process of moving out and I would be planning on fill the vacancy after repairs.

Hi Guys,

I would love some advice. This is my first BRRRR or semi-BRRRR deal and I'm hoping you can give me some good advice! Here are some of the details:

Non-conforming duplex currently rented top and bottom

List Price: $199,000

ARV: $285,000 - $325,000 I'm going with for $285k for extra buffer

I estimating repairs at $50k and 6 months

Rent should be $1900+

Property Tax $115.00 /month

Maintenance Costs 10% $190.00

Vacancy 5% $95.00

Insurance $60.00

Other Utilities $50

mortgage payment on $228k (80% of $285k) around $1168

Cash flow (rent - mortgage - other costs) 1900 - 1168 - 460 = $221

Cash on Cash should be around 10%

I have $30k cash and $30k in a HELOC and could probably get more

If I use a hard money loan and then refi at 80% LTV, after 6-8 months (is there the 1 year waiting period with a hard money lone?) then I'll have $22k plus closing costs left in the deal.

I could also get a traditional mortgage and refi after a year but would need more money upfront for a 20% down payment and repair costs.

What are your thoughts?  Do you have any experience with different financing options?  What is the preferred financing method?  What am I missing?

Thanks in advance!!!

Devin

We found it on the MLS through a realtor. It's not a traditional duplex though so I think that helped.

@Nick Vondrachek Hi Nick, I did a house hack in Lehi and so far it's working out really nicely. I would highly recommend going with a multifamily unit though. You will get more bang for your buck now, when you are living in it, and more bang for your buck when you decide to move. It has less risk because hopefully it wont be totally vacant at any time and zoning should be easier because it should already be zoned multifamily. Cash flowing a SFH can be difficult. I think house hacking is a great idea, good luck!

I have a question for the BP knowledge base: my brother wants to house hack but doesn't have money for a down payment and may not qualify for the loan.  I want to purchase a duplex but would rather not have to come up with the 20% down payment.  Would it work for us to partner up?  Say I put up the down payment and get the loan and my brother lives in the duplex for a year plus.  He gets discounted rent and a small 1-3% ownership stake and I get into the duplex for less down.  Does this work?

How would the mortgage work out?

Does he have to be on the loan for it to be owner occupied?

Does he have to be on the tile for it to be owner occupied?

Does the partnership sound fair?

Thanks for the help.

You can post it on KSL.com and facebook yard salesand people will come.  Why is he tearing it down?

Hi Tiago, Thanks for the reply.  I'll try to send you PM with my email address.

Hello,

I am looking for a tax pro in the Utah County area that has experience with real estate.  Who have you used and liked?

Thanks for the help.