All Forum Posts by: Joel Hutchinson

Hello Jay, You will probably need boots on the ground. Property distress and rehab estimates aren't available online as far as I know. At the very least, you could probably find someone online (Fiverr for example) to drive by and take pictures of the outside of the house. If it looks terrible outside, the inside probably isn't any better. Best of Luck!

Hi Andrew,

Great question. I'm trying to figure this out too. So far, I've heard of the following strategies: knocking on the door, asking neighbors, obtaining ownership records and contact info from the tax assessors office, and paying outside services.

Best of Luck!

Hello @Corinne Bogan,

You've come to the right place to find answers! Sounds like you have already done your homework. Personally, when just starting out, I think it's hard to go wrong with an FHA loan (to lock in historically low interest rates) and House Hacking strategy. This way, even if you end up paying full market price, someone else is paying off some or all of your mortgage. If your market is too competitive to buy a property with a conventional loan, your HELOC option sounds reasonable. Assuming you've correctly estimated the rehab budget, ARV, and yearly expenses, once you've rehabbed the property, lived in it for a couple years, and rented it out with positive cash flow (see 50% Rule), assuming the housing market stays flat or continues to appreciate, you should be able to take out a primary mortgage on the property to pay off your parents HELOC. I hope this helps. Best of Luck!

Welcome to Bigger Pockets @William Whitley. I'm not currently looking for properties in Jacksonville, but just wanted to say I like your post/approach here, and you've come to the right place to build a network. Keep up the good work!

Hello Keith,

I would definitely hire a property inspector to estimate repair costs. Also, if you haven't already run the numbers, you might want to check out the BiggerPockets Tools section for a list of calculators that can help you estimate your return on investment.

Hi Whit, 

You've probably already thought of this, but you could try to minimize your liability (in the event of a default) by purchasing properties Subject To an existing mortgage. While this wouldn't technically reduce your leverage, it would provide some protection in the event you default.

In my opinion, while the market is cyclical, nobody can repeatedly and reliably time the market.

However, I also agree with Gary Keller statement in The Millionaire Real Estate Investor (at least I think this is where the quote came from) that said something like: Anytime an opportunity meets your strict criteria and you act, you have successfully timed the market. 

So market timing, is more about having strict criteria for buying properties at the right price (a great deal) than trying to predict one's place in the market cycle. 

Hi Abraham,

Take some time to familiarize yourself with real estate investing before jumping in. I'm currently taking a year to do this.

• Read as much as you can Top 20 Real Estate Books (or listen to Audiobooks) & listen to Bigger Pockets Podcast.

• Get to know people/Build Your Network. Spend time asking questions and answering questions everyday on BiggerPockets Unanswered Discussions. Attend your local REIA (Real Estate Investor Association)

• Read Ultimate Beginners Guide To Real Estate Investing

You are in the right place. Good Luck!

Hi Daniel,

I don't have any experience with airbnb, but regarding long term small multi family, just make sure the will generate positive cash flow. See the 50% Rule. Looking at the average home price and rental price in Fort Lauderdale, it might not be easy to find properties with positive cash flow right now with buy and hold multifamily. However, you are in the right place to find answers. Good Luck!

Marking through Zillow Property Management is excellent. The tenant application and rental agreement are more difficult to use and personalize (no place for listing my LLC as Landlord for example) than I anticipated and multiple tenants had trouble completing/digitally signing the application and lease agreement.