All Forum Posts by: Jake Baker

@Ken Chen

Looks like a great house hack and property to own. What year did you first house hack?

@Matthew Rich

Looks like a beautiful house! Good luck with your listing. 

@Qais Attarwala

Looks like a great investment! PMI can be tough to deal with at first. Wait a few years and you may be able to do a rate and term refi to remove the PMI

@Christian Terrones

I recommend checking out some local meetups. https://www.biggerpockets.com/forums/521

The best way to find mentors in your area is to attend meetups. Ask to tag along on an ongoing project. You'd be surprised how many investors are receptive to that. I show people my projects all the time. 

@Scott Vaeth

I agree with @William Simpson about replacing the roof. It will increase the ARV which could mean more cash out in your pocket, or a better rate because a higher rate could decrease your LTV.

Things that drive the ARV the most - roof, plumbing, flooring, paint

Things that don't drive ARV as much - windows, landscaping, driveway

@Jan Neruh Kelsey

If your just getting started, you should be fine with the following: 

1. Dedicate one checking account and credit card exclusively to real estate. Keep personal and business finances separate. This alone will create less headache.
2. File all receipts in a dedicated Google Drive folder. Digitize physical receipts for easy storage. Use a consistent naming convention - ex. 2024.03.25 Home Depot
3. Maintain proper records - Contracts, Settlement Statements, Agreements, Promissory Notes etc.

Additionally, you can track income and expenses consistently, using software or spreadsheets. As you scale, if bookkeeping isn't fun for you, consider hiring a bookkeeper for a couple hundred bucks per month.

We do 20 out of state Flips/BRRRRs per year and use QuickBooks Online to manage all of our finances for rehabs. 

I also use QuickBooks Online for most of my clients. For most real estate investors, a Plus subscription is needed in order to have separate by class(property). It is the most popular software in the industry and all CPAs know how to navigate it which is nice.

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@Tony H.

I recommend David King out of San Diego. 

@Collin Henderson

I think the best move is to find a private money lender to loan you the money for the rehab, then refinance into a conventional loan. This avoids the seasoning period and still allows conventional financing for the best rates. 

@Ahmad Moore

It sounds like for the DSCR, either ratio was caused the adjustment, or the appraisal came in too low.