All Forum Posts by: Jacob Plocinski

I have family that has recently come into some inheritance. She has previous mentioned getting involved with rentals with me. Most likely she would put up the money for a down payment and I would handle the day-to-day property management. I'm currently vetting local lawyers because I figure that best option for this type of arrangement would be to create an LLC or another type of corporation. When I schedule an appointment with a lawyer I would like to not sound like a complete babbling fool. Can anyone offer me insight into how they would handle something along these lines? I honestly would like to have this in process or completed before I start to seriously look for a deal, as I would want to move quickly once a deal was found. Thanks for you help in advance.

I know how to evaluate a deal. I can run numbers and see where a property makes sense. I want to bring in private money (friends/family); however, showing them the numbers will most likely overwhelm. Are there certain numbers/figures that seem best to show to a non-investor person? I want them to be confident in giving me their money as well giving them something to follow and keep accountable. Any suggestions? Thanks! 

I'm currently looking at personal residence that I want to turn into a investment property. Most likely around a 5 year turn around. 

The home is currently listed for 120k. It's a 2 BR 1 BA and an estate sale. Rough estimate (in the process of getting some definitive numbers) is about 20k in updates/additions (not including possible termite damage, unsure if they are still active or was treated). It is currently livable, but very dated. The appliances have been sold. 

I had my realtor run comps and she came up with 116k. After doing a little research to see the condition of the homes she used in her comps is apparent that most of the comp homes are in fair better condition. She suggested 108k offer. 

Running the numbers I'd cash flow around negative $50.00/month at 108k. Honestly I'm okay with in comparison to most of the properties I've evaluated.

Pros: The house has a lot of value add potential. It's very close to a growing hospital with a 3 year flex of residents. The location is on a semi-main road; however, properties around this one on the same road have sold upwards of 170k+. I'm thinking with 20k of updates could bring the home value up to around 130-150k. Which at 5 years I'd refinance and pull the equity to use on a more permanent home and use this one as a rental (rough idea). 

Cons: Possible active termites or old damage. The natural gas furnace is very old (1970's or older).

I'm just looking for some additional feedback. I'd probably top out at 100k offer, with 5k in seller assist. Thoughts are welcome and thanks for taking the time reading this.

I'm currently looking at home that is for sale as a single family. However, it could relatively easily be converted into a 2 apartments.

Are there additional things I need to be aware of when converting a single family to a multi? Thanks for you advice in advance. 

@Engelo Rumora

Grand Bahama I believe.

@Account Closed

That would be great.

A friend's father recently passed away. My friend was left some property in the Bahamas. 

Anyone have any advice how how to go about selling the property? Thanks in advance! 

@Edward Casano

Thanks for the information. I'm walking thru right now and running numbers to see where everything fits. 

@Chris Mason

Thanks for the lead, I'll definitely look into them.

I'm currently looking at a duplex. Half of the duplex was recently renovated and the other half is livable, but definitely could use some updating/appliances. I've been reading up on FHA 203k loans; however, I cannot find a lender within 50 miles of my current location that offers FHA 203k loans.

Would you advise using a lender that far away from the property? Are there alternative types of loans that offer financing of improvements wrapped into the mortgage? Thanks for your help in advance.

I am currently reading What Every Real Estate Investor Needs to Know About Cash Flow by Frank Gallinelli. I just finished Chapter 5: Measuring the Return on a Real Estate Investment and yes my brain hurts, but in a great way!

He finished the chapter talking about IRR, MIRR, FMRR and CpA. I'm curious of real world examples of using the IRR, MIRR, and FMRR. How do you use these methods to change the way you invest in your properties?

I want to primarily focus on buy and hold, but after reading this chapter I definitely get the impression that the buy and hold model is great, but obviously has its limitations. If you are a buy and hold investor, do you use these calculations? How so, etc.?

I will most likely re-read this chapter again and try to digest a little bit more. I may be completely interpreting it incorrectly, but all advice, recommendations are great! Thanks.