All Forum Posts by: Dominic Scheck

Thanks, @Account Closed. The second property is 6 miles away, 10 years older, $15K less expensive, and about 250 more square feet. So it's pretty comparable, other than the second property being in a suburb instead of Minneapolis itself. Is it really just convincing the lender I will live there?

I'm still interested in knowing if there are any house-hacking-friendly lenders out there. But also, as a follow-up question: if I move into the new property, can I refinance it with owner-occupied terms while I'm living in it?

Hi. I bought a duplex a year ago and live in it. I want to buy a second duplex, live there, and fully rent out my current duplex. But lenders are saying their underwriters will treat this second duplex as an investment property and require 25% down, even though I plan to live there. One local and one national lender have told me this. 

Do you know any lenders who would let me get this second property with owner-occupied terms? I'm trying to act quickly on a deal. Thanks, house-hackers!

Thanks, Amber. That's helpful, and I'll keep in mind to treat the deal as normal.

Hi, everyone. Do you have any recommendations for setting up a seller-financed deal, once we settle on terms?

Do you suggest a title company in Minneapolis or St. Paul, MN? If the title company is good, do you need a real estate lawyer too?

Thanks for any advice you have.

Great ideas. Thanks, @Michael Henry, @David Barnett, and @Jason Bindra

Hi, friends.

Do you keep capital and reserves in a savings account? In mutual funds? Obviously reserves and capital need to be in a liquid vehicle, but do you really keep $10K, $50K, $100K+ in an account earning nearly 0%?

I have one duplex and am looking for my next small multifamily. Every month, I put ~50-70% of my W2 paycheck into robo-advisor investments (Wealthfront and Betterment) to save for that next deal. I can transfer funds in or out of those accounts in a few days. I choose a conservative stock-bond mix so that a Wall Street downturn doesn't burn me too much when I need the money.

I also keep about $2K in cash to handle unexpected repairs, but I'm uncomfortable having much more napping in the bank. 

What do you do? I'm especially curious to hear how small and large investors differ. Thanks!

@Matthew Lindquist, Thanks, that's really helpful. I'll look into the Fix It loan.

@Scott S., I appreciate the tip! I'll call Dave.

@Marcia Maynard Thanks for the excellent advice; it's great to hear from an experienced host and landlord. I was worried about mixing rental models in the same building.

@Tim Swierczek, Terrific point. Even a few months would help.

@Dan Vleck, Sorry about your pipe and thanks for the advice!

@Account Closed, Great idea. I'll check with the water and sewer department. 

I love that you all are so willing to share your expertise and help with the problem from every angle. Thanks again.

Hi, friends,

Water started coming up from the drains in my duplex. A Roto Rooter technician managed to clear the main line after a ton of work and resorting to a 1-inch blade (apparently, they usually use only 6- or 3-inch blades due to risk of pipe damage). Video imaging showed two problems: one under the street and one under a sidewalk. Both problems are with my pipes, before they connect to the city's.

The bid to fix both problems was $13,600 (including about 12 feet of pipe replacement, city permits, street patches, and sidewalk repair). That's a big unexpected capital expense for anyone, but as a new investor with only one unit, it hurts a lot and slows down my next purchase.

I'm looking for more bids and considering renting out my unit of the duplex—either getting a month-to-month roommate or renting out on Airbnb. Pros would be to generate more revenue and (I believe) claim a larger portion of this repair as a business expense. 

Questions for you brilliant BPers:

1. Would you refer any affordable Minnesota plumbers that can handle a big job?

2. What do you think about daily/weekly rentals (Airbnb or Craigslist) vs. getting a roommate on a lease? I like the per-diem cash, but I also don't want to abrade my current tenants with a revolving door of guests. 

3. What other ideas do you have to handle this situation?

All advice is welcome. Thanks!

Good thought, Sue! I didn't even consider the lock-out reduction. Thanks for your feedback.

Thanks, Alexander and Adam! I will lock it up.

Dominic