All Forum Posts by: Ricardo R.

Hey David,

Yeah, that’s a tricky one — small HOAs and big repairs are a bad combo because there’s no real buffer between owners and the debt. You’re absolutely right to be cautious here.

Here's the deal: when an HOA takes out a loan, even though it's technically "the association" borrowing the money, every unit owner is still on the hook. The collateral is almost always the association's right to collect dues — and if one or two owners default, the HOA can raise everyone else’s dues or issue new assessments to make payments. The bank won’t go after your personal credit directly, but you can still get stuck paying for someone else’s shortfall.

You’re thinking about it the right way with that special assessment structure — and yes, that absolutely exists. It’s pretty common in small associations. Usually it looks like this:

• The HOA votes on the total project cost and issues a special assessment.

• Each owner has the choice to pay their share in full within a set window (30–60 days).

• The HOA then takes out a loan only for the balance owed by owners who didn’t pay up front.

• The HOA services the loan with a temporary dues increase or separate "loan payment" line item for those units.

The key is that the loan obligation stays tied to the association, but the repayment burden can be allocated only to those who opted for financing. The loan terms have to be structured carefully so the lender knows what portion of dues are pledged to repayment — that’s why some lenders don’t love doing partial assessments, but it can be done.

If the others refuse that setup, one alternative you could propose is creating a "repayment agreement" clause in the minutes or bylaws that says any owner who covers another's delinquency (directly or via HOA reserves) is reimbursed with interest, and the HOA places a lien on the delinquent owner's unit for that amount. It's not perfect, but it gives you some protection.

Bottom line — you're not wrong to avoid cosigning on a collective loan, and if your HOA attorney is sharp, they can absolutely structure a dual-track solution so people who want to pay upfront can do so and avoid the financing drag.

If you want a reference point, tell the board to ask their lender about a “segmented special assessment loan” — that’s the term most banks use for this kind of split structure. It’s the fairest middle ground for situations like yours; David, a bit long but I really hope this helps you, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance. 

Hey Ryan,

Good question — you’re thinking about it the right way, weighing your options before jumping in. The best move depends on whether you want to keep your current home as a rental or cash out and reset clean with the next one.

If you want to keep it, a cash-out refinance usually makes the most sense. The big benefit over a HELOC is that it locks in a fixed rate and stretches your payments over 30 years instead of a 15-year draw/repay period. That lower payment makes the property way easier to cash flow once it's rented. Plus, refis free up a lump sum you can use for the down payment on your next house and some light rehab — exactly what you mentioned.

The downside is you're resetting your mortgage and eating closing costs again (usually around 2–3% of the loan amount). But if your current interest rate is low, you might consider a second-position HELOC just for the renovation/down payment money — especially if you plan to refinance later when rates drop.

If you sell instead, it’s simple — no debt juggling — but you’ll lose the chance to hang on to a property that could cash flow and appreciate long term.

Here’s my quick example:
Say your house is worth $300K and you owe $150K — that’s $150K equity.

• Sell: maybe walk away with $135K after closing.

• Cash-out refi to 75% LTV: new loan about $225K, gives you roughly $75K cash out after payoff and fees — enough to update your current place and put down 10–15% on the next one.

If your current home rents well after the upgrade, that’s the smarter long game.

If not, selling might be cleaner — take the win, roll it forward, and buy the bigger place plus a rental later when you’re not juggling two moves and four kids.

You’re thinking like an investor already, though — run both versions in a simple spreadsheet and see which one gets you closer to your cash flow or portfolio goal; Ryan, I really hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance. 

Hey Alex,

I’ve been exactly where you’re at, man — reading everything, running numbers, networking like crazy, but still feeling like you’re spinning your wheels. It’s normal. You’re not doing anything wrong — you’re just in that awkward “bridge” phase between learning and doing.

Here’s what might help you move forward:

Right now, don’t stress about buying yet. Use this time to build skills that make you money or get you closer to deals. If you’re analytical and good with numbers, learn to analyze deals for other investors — people will actually pay (or mentor) you for that. If you’re social, start networking with agents, wholesalers, and property managers in your target market — not just to “build a team,” but to get reps at evaluating real deals and learning what sells or rents fast.

Since you’re still in school, a small next step could be something like house hacking with roommates when you graduate. Even if it’s just renting extra rooms, that’s real investing experience — financing, screening tenants, managing repairs — all on a small scale.

And yeah, the “numbers don’t pencil” frustration? Everyone hits that wall. It’s not that the deals don’t exist — it’s that the good ones rarely hit Zillow. You’ll find more success by connecting directly with agents who work with investors or joining local FB/Meetup groups where deals get shared before they’re public.

My advice: keep learning, but anchor it with one small real-world step — analyze one real deal a day, talk to one new investor a week, or manage one rental room when you can. Progress compounds faster than you think.

Hang in there — the consistency pays off long before the first property does; Alex I really hope this helps you a bit, I sent you DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance. 

Hey Spencer,

Good question — and this is one of those situations where the numbers look simple, but lender rules can make things tricky.

Between the two options, Option 1 (buying at $470K and rolling your credits and commission in) usually makes more sense in your position. The reason is that your down payment is based on the purchase price, not the “net” after credits. So if you bump the price up to include your commission and seller credits, you’re effectively using those credits to offset what you’d otherwise bring to the table — a smart way to keep cash in your pocket.

Let’s say:

• $470,000 purchase price

• 20% down = $94,000

• You’re getting ~$42,000 back in total commission and seller credits
  That means you’re only out roughly $52,000 net, which matches your notes.

If you go with Option 2 — lower price ($435K) and less credits — your down payment drops ($87,000), but since you’re only getting $10K in credits, your out-of-pocket jumps closer to $77K. That’s a $25K swing for just an $80/month difference in payment.

The only real watch-out is appraisal risk — if the appraiser comes in closer to $435K, the lender will base everything off that value. So make sure your numbers still work if they trim back some of your credit room.

Otherwise, you’re thinking about it correctly. Option 1 keeps your cash free for reserves or upgrades, and that’s almost always the better play; Spencer I really hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance. 

Hey Ofir,

Man, first off — respect for everything you’ve pushed through and for jumping right back into building again. Based on what you said, here’s a straight take:

If your main goal is to house hack while keeping costs low and growing, I’d lean toward staying in Central Florida for round one. You already know the area, the permitting process, and the general demand cycles — that’s a big edge most new investors don’t have. Areas like Ocala, Lakeland, or Deltona are still relatively affordable, and you can get solid rent-to-price ratios (1% range) with less regulatory headache than in bigger coastal markets.

If you’re open to moving, though, Greenville, SC, and Knoxville, TN are also worth serious looks. They've got solid job growth, friendly STR/MTR laws, and reasonable prices — you can still find properties in the $200K–$250K range that rent well.

On the Airbnb ban, since you’re going direct-booking anyway, that’s actually an opportunity. You already know how to run it; you just need to plug into local travel nurse networks, Furnished Finder, and corporate housing directories. And the pet-friendly angle tied to your K9 training? That’s gold. Lean hard into that branding — it gives you an instant niche.

Your income and experience suggest you’re ready — just stay local or in a market you can drive to easily at first. You’ll scale faster when you’re not learning everything new at once; Ofir, I really hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance. 

@Lawrence Cargnoni, To your questions:

Option 2 (Missouri LLC owned by a Wyoming holding company):
You might avoid registering the Missouri LLC in California if you’re not materially managing it from within the state. But since you’re a California resident — and, as you mentioned before, already had to register your Ohio LLC as a foreign entity in CA because it was managed from there — the same logic would likely apply. California looks at where management and control occur, not just where the property sits. So if you’re signing contracts, handling banking, or directing operations from your home office in San Jose, the Franchise Tax Board will probably say it’s “doing business” in CA again.

Option 3 (Wyoming LLC only):
Same issue. Even though Wyoming is great for anonymity and simplicity, if you're actively managing that LLC from California, you're technically doing business there and would have to register it as a foreign LLC.

So in short — yes, you’d likely have to register either of those entities in California, just like you did with your Ohio one, unless you set up true out-of-state management (like a Missouri-based property manager or partner handling all the activity).

Hey Jason,

That's a really smart question — figuring out how each upgrade moves the needle on value is the heart of nailing your ARV. There's no universal chart that says "X project = Y increase," because the impact depends on your market and comp set, but here are some realistic, data-backed estimates and rules of thumb investors use:

1. Windows – Great for both appraisals and rentability. Expect about a 60–75% return on cost in most markets. If you spend $10K on windows, that typically adds $6K–$7.5K in appraised value. It won't blow up your ARV, but it helps your energy efficiency, appraisal photos, and tenant quality.

2. Kitchens – Still the king of ROI. A midrange kitchen remodel of $20K–$25K usually adds $15K–$20K in value (about 75–80% ROI). Even smaller updates — new cabinets, counters, and lighting — can add $10–15 per sq ft in perceived value when appraisers compare it to dated comps.

3. Bathrooms – Slightly lower ROI but still strong. Budget $8K–$12K per full bath and expect around 60–70% value lift. New tile and vanities go a long way.

4. Flooring & Paint – These are "curb appeal multipliers." You won't get a dollar-for-dollar value bump, but they help justify top-of-market comps. If you spend $5K repainting and $7K on flooring, you might see $10K–$15K added to your ARV simply because the house looks turnkey.

5. Mechanical Systems (roof, HVAC, plumbing) – These are more about protecting value than increasing it. They don’t add much perceived value but prevent appraisers or buyers from discounting the home. A new roof might cost $9K and only raise value by $5K, but it keeps buyers from knocking off $15K in negotiations.

6. Curb Appeal & Landscaping – Modest returns, around 50–60%, but a big deal for tenant attraction and resale.

So, in Pittsburgh, the best approach is to pull your ARV from the top three recently sold comps that match your size, layout, and finish level after rehab. Then work backward: what level of improvement do those comps show, and what’s missing from your property?

In other words, if your comps are selling for $250K and your current property is worth $180K, you've got about $70K of potential lift to play with. If your total renovation cost (windows, kitchen, bath, paint, etc.) comes in under $50K, you're in solid BRRRR territory. Jason, I hope this helps you a bit, I know it's a bit beyond the question about windows but if you're doing a project maybe my list will help you prioritze, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you in advance.

Hey Alan,

Buying older homes can be a great way to find value, but yeah — they come with their own set of “gotchas” that newer investors don’t always see coming. You’re right to be thinking about lead, radon, and outdated systems.

Here’s how most experienced investors handle it:

1. Lead Paint (Pre-1978 homes):
You’re not required to test for lead before buying, but you should budget for lead-safe practices during any renovation. A lead inspection or XRF test during your inspection phase costs about $300–$500, and it’ll tell you exactly where the risk areas are. If you plan to disturb any painted surfaces (windows, trim, walls), make sure your contractor is EPA RRP-certified — it’s illegal for them to scrape or sand without it. If you’re holding as a rental, disclose that the home “may contain lead-based paint” (that’s the federal rule).

2. Radon Testing:
In most parts of the country, a $100–$150 radon test during inspection is a cheap peace of mind move. You’ll see higher radon levels more often in basements and crawl spaces, especially in places like the Midwest or Northeast. Mitigation systems run about $1,200–$1,800 and usually solve the problem entirely.

3. Knob-and-Tube Wiring:
This one can be sneaky. If the home still has active knob-and-tube (K&T), most insurers and lenders will flag it. Replacement costs can range from $8K–$20K depending on the house size. The workaround some investors use is to rewire just the accessible areas (attic, basement, open walls) and cap off the rest until a full remodel. But if it’s fully active, plan for a rewire or negotiate a price reduction upfront.

4. Other Hidden Issues:
– Galvanized plumbing: These pipes corrode from the inside and kill water pressure. Replacing them with PEX or copper can be another $3K–$10K.
– Foundation/moisture: Older homes sometimes don’t have proper drainage. Look for signs of efflorescence or sagging joists.
– Insulation and HVAC: Many pre-1978 homes have poor insulation and drafty windows — energy costs can be higher than you’d expect.

Bottom line: none of these things are deal breakers, but they are budget items. A good rule of thumb for pre-1978 homes is to set aside an extra 10–15% of your rehab budget for surprises.

If you like character homes and you’re buying right on price, the charm can easily outweigh the headaches — just make sure the math includes the reality of owning something with a few wrinkles; Alan, I hope this helps you a bit, tried to list most of the common issues with these older properties, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist.

Hey James,

Good question — Florida handles closings pretty differently from Connecticut. Down there, title companies essentially take on the role that closing attorneys handle in your state. The good news is, overall costs in Florida are usually lower than attorney-based closings up north.

For a property around $450,000, here’s a realistic breakdown based on typical Orlando title company fees:

• Title insurance (lender + owner policy): Usually $2,000–$2,200 total, depending on the exact premium rate and endorsements. Florida has a promulgated rate system, so most companies charge within a narrow range — about $5.75 per $1,000 for the first $100K and $5 per $1,000 after that.

• Title/closing fee (their version of the attorney fee): Around $500–$800.

• Recording, doc stamps, and miscellaneous fees: Roughly $300–$600.

• Wire and courier fees: Usually $50–$150 combined.

So altogether, you’re looking at roughly $2,800–$3,500 in title-related closing costs for a $450K property — sometimes a little less if the seller covers part of it (which happens occasionally in Florida).

If you want to get more exact, you can call a local title company in Orlando and ask for a “title quote” — they’ll give you an itemized estimate in a few minutes. But for offer calculations, assuming $3K for title and closing fees is pretty safe.

You’ll probably find it simpler and slightly cheaper than the attorney route you’re used to in Connecticut; James I really hope this helps you a bit - tried to organize it a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you. 

Hey Denise,

I went through your report, and you’re actually looking at this the right way—you’re just interpreting the numbers like an investor, when what you really have here is a hybrid situation: part home, part house hack.

Your report shows a purchase price of about $410,000, with $75,000 budgeted for renovations. That brings your total project cost to roughly $496,000. Your projected mortgage payment before refinancing is around $2,200/month, and about $1,887/month after the refinance. With rent from one or two rooms totaling about $2,275/month, the calculator shows a negative cash flow of around $885/month before refi and $568/month after.

Here’s the thing — those numbers look bad only if you treat this like a pure investment property. But you’re not. You’re buying a primary residence that also helps offset your housing costs. If you were renting a comparable home for, say, $3,000–$3,200 a month, you’re effectively dropping that down to under $600 out-of-pocket once your room rentals are factored in. That’s a major improvement to your monthly budget.

Also, don’t forget that the report’s “Return on Investment” section isn’t really meant for owner-occupants. You’re building equity through appreciation and paying down principal, not chasing immediate cash flow. Once you renovate and your divorce is finalized, your property could be worth closer to the $500,000–$550,000 range that the report projects. That’s tens of thousands in potential equity that won’t show up in your monthly cash flow line but is still real value you’re creating.

If I were you, I’d focus less on the red numbers in this first phase and more on affordability, flexibility, and long-term upside. You’re making a smart move: reducing your living expenses while positioning yourself to build wealth once the dust settles. When the reno’s done, we can rerun this as a true “house hack” scenario—those numbers will look a lot more like what you’re actually achieving financially; Denise I hope this helps you a bit, I sent you a DM on BP... it's one of the reasons I do this, I hope you can assist. Thank you.