All Forum Posts by: Tyler Weaver

One solution would be to do seller financing, then partner with another friend/family member on the rehab funds.

If you are house hacking it might make more sense to do an owner occupied type loan on both the house and construction. Possibly a FHA loan.

One thing to consider with the rent being below the 1% rule. There are better cashflowing opportunities out there, so the theory here would be that it should have an above average appreciation outlook to justify the investment. If this is true, and that is what you are looking for then great. If it is not true, or you are not looking to mix appreciation with cashflow in the investment then this isn't the investment for you.

I have used upwork for things like data mining etc. Accounting and bookkeeping I have used other sources such as referrals. My accountant is local and bookkeeper is actually in office. Having a remote bookkeeper is viable and I have used remote bookeepers before. Cost savings may not be the primary driver for going with someone remote. They may have a better system and a focus on your specific business that would be harder to find locally. 

Depends on how systemized you are. If you are super systemized it can work well remotely. If you are working more in an adhoc manor it is better to have people working beside you.

Unless you are specifically trying to invest out of state agents and contractors you will want to meet on site with regularly. 

Accountant, lender, bookkeeper, etc. can easily be remote. Lender will likely only meet once or twice pre-covid anyways. The rest would be sending paperwork and deals back and forth.

I don't see how having no experience rehabbing property leads to the logical conclusion of getting a builders license.

Do you mean you are unexperienced so you want to get a license so you can do the work on your own? If so, it is probably best to start with a project that is a light rehab and does not require a permit/license. Perform that work first, then start branching out into larger projects. 

Are all the utilities separate? In my market it is rare for water to be on two accounts for a duplex. 

Even if you self manage you will want to underwrite the deal using the expectation of being able to profit while paying for management. 

Capex/maintenance is likely low depending on where the building's systems are on its maintenance cycle.

They are each on their own parcel? I don't think that would be possible for a conventional lender to put on the same note. 

As far as handling it through 2 sellers and closing at the same time for the same loan that was collateralized by both parcels, a good closing company should be able to pull that off.

Since you mentioned house hacking, if you talk to an independent mortgage broker, they may have a non conventional owner occupied loan product that mimics a lot of the benefits of a conventional note that would work for 2 parcels. 

I like your train of thought.

You need to be very sure you are ok with the risks of either principal loss or illiquidity of your investments for a while. 

It sounds like you aggressively paid down your mortgage over time. If that is the case, by doing cash out refi you will put yourself in the position of being more like having not paid down the mortgage and saved the money for investing.  

You really cannot build A class amenities on an 8 unit building. It is just nice units, which competes directly with older buildings without amenities. There is also very little small pieces of vacant land that will allow zoning for multifamily. With larger scale, there can be money in the budget to piece together parcels and do the legal work and hearings to get zoning approved.

That being said there is a decent amount of development in the 4-20 unit level on an urban infill basis. Usually they do not have the clean ground up construction. Though I would argue that the stabilization of these structures costs more than ground up development in many cases. Some of the projects I have seen were a mix of existing building and building new next to it to create a larger footprint. 

Ground up multifamily development at a small scale is probably not going to yield a better result than buying existing. At best it would be a similar return with more effort, but could be useful if you are looking to establish a track record in order to grow to larger deals.

@Amy Martini I got mine from my attorney. It was actually a standard one they have from their underwriter I think. 11 pages is a bit long, but I doubt you will get everything covered properly much shorter than that. Probably somewhere north of 6 pages. 

When I started out, I borrowed one from a previous landlord and it was written in plain english. Was still 4 pages. I feel like it is missing some of the points that the lease I now use covers, and the detail that could be useful in a dispute. But being short and easy to read was nice in being able to walk a tenant through what was expected of them.