All Forum Posts by: Forrest Holden

@Mike Wood I think I know what you are saying, I will need new Tax ID's etc for each 50' x 150' separate from the house.  My intention (in the short term) is not to sell but actually to rent.  Additionally, I want to pay cash as much as possible, and I am thinking about trying to go about this without a construction loan.  Under these circumstances, would I still need to separate the lots from the main residence tax parcel in order to build on them?

@Mike Wood Forgive my ignorance, but shouldn't the property already be divided because it is listed as 4 different lots under the tax ID?  I believe it's listed as lot 6, 7, 8, and 9 on block 10 of subdivision.......  This would lead me to believe that this property is already divided...

I am looking into this very same subject as well.  I am currently buying a primary residence in San Angelo Texas.  With this house comes two additional standard size 50 ft x 100 ft lots.  I am interested in building a duplex that splits the border between these two lots, or, building small units on each lot.  The lots are not in the most amazing location, but I would like to put them to good use.  I would like to do as much of the work as I can myself to keep construction costs as low as possible, I understand that this could take a while, but I would like to own these two units outright if possible and invest my own time and cash to build as much of it as I can without paying someone.  Luckly, the primary residence next door has a 300 square foot workshop so that I could keep all of my tools on site and work on these projects as often as I can without having to leave the house.

Does anyone  have any advice on how to maximize this opportunity for passive income?  Right now I'm thinking about some semi-luxury 1 bed, 1 bath 600 sqft units with a fairly open layout and 10 foot ceilings on slab.  What would be the best way to get started on something like this?

Hello there,

Welcome to the Bigger Pockets (BP) community. This place is lively and filled with tons of useful information. I am fairly new to Real Estate Investing (REI) as well and I am also Active Duty USMC. I am currently shopping the market trying to find a primary residence that is a great deal for when I become stationed at Goodfellow, AFB. I own one investment property in San Angelo and my primary residence where I currently live is going to become a rental as well. I'm an REI fanatic and I am very interested in learning as much as I can about the Real Estate market in the San Angelo area. Let me know if you ever want to discuss any REI topics whether in general, or within reltaion to San Angelo specifically. Also, do you plan to purchase your rental properties in San Angelo, or are you looking at moving away when your husband retires and purchasing rental properties somewhere else?

@Freddy Pettiford 

I have some questions for you.

Do you like hard work?  Are you capable of doing any projects on your own with minimal help that could drastically force appreciation of your property?  Do you like DIY?  Sweat equity is not for the faint of heart, but the reason I ask is because if you have extra square feet available inside your house, you could force appreciation by adding an extra bedroom, or, maybe even a bathroom.  If you don't mind, how many square feet is your property?  How many bedrooms and bathrooms do you have in the property?

Additionally,  What does the 50% rule say about your home, and what does the market say your house would rent for right now?  If you give me a little bit more information about your property, I think I might be able to help you determine whether your home will be an asset or a liability.  

I personally hate selling if I don't have to, as the guy before me said, buying and selling costs you transaction fees etc.  If you are able to hold that property for 30 years until you close out the mortgage, it could end up being 1/4th of your retirement income. What I think you need to know is whether or not you believe that property will cash flow at least $100 a month per the 50% rule after all expenses for the next 30 years (or the length of your mortgage) or whether you will be able to make this property do that after you create some sweat equity through forced appreciation utilizing one of the strategies above.  It seems pretty clear that there isn't very much money to be made in the short term by selling.  The market could change drastically though in 2, 5 or 10 years.  I strongly believe that what you need to know how is if renting is an option that wont cost you money according to the 50% rule.  Once you know that, you can plan your strategy.

As a veteran, I am curious about your situation and hope to hear back from you.

-Forrest Holden

@Anil Samuel

Thank you,

I will message you for details.

-Forrest Holden

@Jack M.

Pioneer Enterprises looks a little pricey, and their contract also seems to be a bit self-serving.  On the other hand, it also looks like they don't play around when it comes to doing the job their paid to do.  I'm going to try and find a manager a little closer to the property in Odenton if I can.

Thanks for the tip.

-Forrest Holden

@Russell Brazil

I would consider self-management, however, I am moving half-way across the country.  I've been looking at the blog, but I haven't seen the specific post you're talking about, could you point me in the right direction?

http://baltimorerealestateinvestingblog.com/2011/0...

-Forrest Holden