All Forum Posts by: Jeff Higgins

I was wondering if any one has ever bought a single wide mobile home as an investment property? I am wanting to know about any issues you had financing the deal. pulling your equity out of the property, borrowing against it through a bank. basically the good the bad and the ugly with this type of investment. 

I live in a good rental market and my number look good in terms of CoC returns and monthly cash flow. the seller is willing to seller finance 50%. My concern is the bank will not let me borrow against the property once I fully own it so I can pull my money back out.

I recently bought a house in August that I will be flipping. I am looking at making around 90K to 80K before taxes. This will most likely put me in the 24% tax bracket but I am close enough to falling into the 22% tax bracket if i can some how figure out a way to lower my taxable income. I am looking to use the proceeds of the flip to pay off a vehicle which should help with my DTI as well as my HELOC so I can do another investment. my overall goal is to pay down my debt and get some rental properties for passive income. I was wondering if anyone knew of a way I can lower my taxable income though write-offs or by starting a business? any help will be greatly appreciated.

Thanks,

Jeff 

I am currently rehabbing a property that I am wanting to BRRRR. I had the city come out to the property to help me understand the code if I touch/work on different items. currently in the house there is nob and tube wiring. the inspector said if I leave it alone I will not have replace it. I can simply frame around the metal conduit with 2x2 and frame out the basement walls. if I want to hide the wiring in the existing walls I would need to replace the wiring. I have to tear down the basement ceiling for several reasons so the floor joists will be exposed.

My question is for when I go to have it appraised will the new wiring make up the cost of the investment in new wiring?

thank you in advance for any advice.

@Frank Chin great thank you very much.

I have a question regarding a purchase of a rental property from a family member. My wife and I are going to purchase a single family home from a family member. They are selling it to us for what they owe on the house plus a little bit extra cash. Total purchase is 70K. We have a rehab budget of 30K. we are trying to do the BRRRR method and our family member is willing to just allow us to pay their current mortgage while we fix up the house. We then want to get it rented and refinanced and pull out the equity which we will create with the rehab, in order to fund our next property.

The question I have is how can we do this while not technically buying the house from our family member? The bank would require us to put 25% down of the purchase price which we could do but it would kill our rehab budget. one thought was our family member would float us the 25% and then just forgive the "loan of the 25%" but I am afraid that would be considered gifting and would cause them to encore a gifting tax. The other thought was to quick deed us onto the title now and then we can buy them out of the property once we refinance.  I am sure we are not the first people to do this so I was wondering if anyone had any suggestions.

Thank you in advance for any suggestions or ideas.

@Geordy Rostad @Pat L. Thanks for the advice and information. Really appreciate it greatly.

@Pat L. Thanks for the info. At what point in your process did you call the city? Was it before you started or while you were in the process of actually doing your rehab work.

I'm new to this so I am not as familiar as to all the codes. Based off of the two replies I think it's clear I need to do more research in understanding the city code better. Thanks again.

@Geordy Rostad thanks for the advice. I did go down to the city already and spoke with the inspector. He was the one who told me he would come out and tell me what is code and not. I live in a small town so I am guessing that his offer was purely a courtesy. I wouldn't expect that in a bigger city.

So my question to you is would you take advantage of that considering I plan to do most of the work myself and may not be as familiar with the code as a contractor or would you just do the research on your own and then do the work and then have it inspected?

Also is there any reason to think that if I have the inspector come out first he would point out areas that don't meet current code and force me to fix that issue costing me more money. I'm just trying to understand why I wouldn't take advantage of the offer to come out and give me in the inspectors word "advice is free but the inspection is not"

My wife and I are about to purchase our very first property. Local city law says I can fix it up without having to involve a licensed contractor if I do the work myself. However there are some things I do not know how to do so I will be contracting that out. We have yet to determine if we will buy and hold this property or flip it. Either way I believe we will need a permit.

A family member, who is also a seasoned real estate investor, told me not to involve the city unless I have no choice. However I know that if I have the inspector comes in and I explain to them what I want to do they will tell me what is code and what isn't. I want to do this because I can then better determine what will fit in my rehab budget. This will also help me determine if I fix it up enough to rent it or if I spend a little more and fix it up to flip it. The last thing I want to do is spend the money fixing it only to have it not pass inspection. Costing me more money.

Here is my question, When you purchase a property like this when do you involve the city inspector?