All Forum Posts by: Jeremy Host

Was curious if anyone has experience with dealing with overhanging tree limbs on your rental property. I have a property that has an giant 80' tall silver maple in the backyard right near the deck and porch of the house, the tree overhangs the deck and part of the porch and provide a lot of shade for the backyard. My tenant is complaining about the potential risk of a tree limb falling on them. There are no large broken branches that we are neglecting.

We would have to remove basically the entire tree in order to completely remove the risk of anything falling on them. He had mentioned taking legal action because we are "violating the lease by not providing a safe property."

My thought is any tree on the property could at any time fall on the house, we have two other large trees in the yard as well. Why would we have to pay several thousand dollars to remove portions of the tree to satisfy their complaint? Does he have any recourse for violating the lease?

I should expand a bit. I am looking to do a live and flip but I am looking for creative ways to finance and not use my own cash for the rehab. I've seen some remodelers that offer financing options and I wanted to explore if that was an option. If I could do 0% down, 0 interest for 18 months (I saw one company offer this) and then get a HELOC to repay the loan. I'd only be paying the interest on the HELOC until I sell and the balloon payment kicks in.

I am curious if those companies inflate prices so much that it is cost prohibitive. I expect they are higher than hiring out to various trades.

Any other creative financing options that would achieve similar results?

I was wondering if anyone has any experience utilizing financing offered by a GC or Remodeler and what your experience was good or bad, and if they were competitive cost-wise or if they inflated due to financing?

Looking to connect with agents in the Fayetteville area, any recommendations on who to talk to?

Quote from @Roxanne Pruitt-Kiser:

Hi Jeremy, I am an OOS investor and just started in Minneapolis. I'm not sure how much help I can be but I'm working on building my team there.

Roxanne,

Thanks for reaching out, I am looking to invest outside of Minneapolis. I guess I should have clarified that. Where do you currently invest?

Thanks

I am looking to connect with investors that are investing out of state to discuss strategy, building teams, what tools to use, picking locations, etc.

Would love to meet up or connect via video conference, feel free to reach out!

For those of you out there in the BP world that are doing flips and still have a W2 job. Are you projecting the income tax and self employment tax as part of your projections in each individual analysis or are you worrying about that at tax time and not projecting that in the net profit?

When running an analysis I am including these two, income tax per my tax bracket, and 15% for self employment tax. When I factor these in, it makes deals look a lot less attractive.

I also believe you pay self employment tax up to a certain percentage and also income tax is kind of a sliding scale as well.

Feels like maybe I am over analyzing?

Quote from @Brandon Plombon:

@Jeremy Host I would love to connect with you. I am from Minnesota as well and am always looking to connect with new individuals. As far as BRRRR being dead it is definitely more different to achieve with rates as I don't believe prices have kept up with rates as of late and expect them to come down some more. In the near future there will be better opportunities other than BRRRR, in my opinion.

Brandon,

I would be happy to connect! Message me and I can get you my contact information.

Thanks

I am currently searching for small multifamily properties to BRRRR in the midwest and seeking to connect with other investors that are currently BRRRRing small multifamily properties. I would love to discuss sourcing deals, locations, financing, rehab, etc.

I have seen and heard that BRRRR is dead or hibernating because of market trends and interest rate increases over the last 2 years. Is this the case?

Thanks!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $315,000
Cash invested: $68,000

Up/Down duplex with 3br/1ba in each unit locating in Saint Paul, MN. Minor cosmetic updates needed to prepare for making available to Section 8 tenants. We have the option to do more extensive cosmetic rehab to go to open market if necessary.

What made you interested in investing in this type of deal?

We have been targeting fix/flips, BRRRRs, and small multifamily for about a year and half with a more recent focus on small multifamily to expand our portfolio.

How did you find this deal and how did you negotiate it?

We found it through our realtor on the MLS, we were able to negotiate the agreement down due to the slowing market, the time of year, and the previous owner's motivation to offload a vacant property.

How did you finance this deal?

Commercial loan through a local lender