All Forum Posts by: Account Closed

Hi Sam. I'm closing on a property here in Billings that I had a similar question (reverse: convert a single family into duplex?). I ended up deciding at this point to keep it a SFR, because I'm not sub-metered for water and trying to collect on a unique water bill while simultaneously automating rents was overly complicated. I think episode 60 of the bp podcast talks about sub-metering alternatives though. Additionally, in this scenario for me, I would have to rezone, pay expenses related to that, and my final rental amount for my property would actually be about the same, in fact less after I take away my monthly water utility payment. Lastly, more renters = more risk and effort. I would ask a couple questions: 1. Do you think you can get the same amount in rent from one SFR renter (less risk, work too to only have one renter!), as you can from splitting and doing 2 renters (higher risk)? 2. Do you have to pay any utilities in one situation that you can easily defer to the tenant in another (e.g. Is water not submetered so you'd have to pay if it was a duplex)? 3. Is the risk incurred greater than the potential reward of increased cash flow?

Isn't it kind of a big deal to have a dishwasher? Our first year of marriage we lived in a little one-bedroom apt and we didn't have a dishwasher and had shared laundry with 7 other apts. Seems like it would make it easier to attract a tenant with a dishwasher. I can fudge on space if I want to extend the depth a bit, but I'm not following...I have 4 feet...if cabinet minimums are only 24", and I only have one wall to work with, can't I even get a little extra depth and still be ok? I'm just thinking a skinny fridge (30"), small dishwasher (24"), small double-basin sink (28"), and a skinny oven/range (28"). Am I not thinking this through? I have 12', and that length only measures 110", with paneling in between. I could get a single sink if things are tight. Right?!

Joseph Tjader what Brian Lacey is describing is detailed toward the end of Brandon Turner's book "The Book On Investing in Real Estate with No (or Low) Money Down." You can get it on Audible for free if you sign up for a trial (assuming you haven't already signed up for Audible yet). It's a great read/listen, and speaks specifically to the 203k loan option and requirements in a brief synopsis. Biggest downside is that you have to live in the property to make it work. He also lists some alternative options to consider too (E.g. USDA loans).

Thanks Matthew! I talked to my attorney, and she did say the concern with an umbrella policy is that if the coverage stops at $1M, and it's a $2M judgment, I'm cooked. This is a tough spot to be to simply think I can adequately cover myself securely with an umbrella policy, but I also want to get the best rate possible! 

I learned today that I cannot have a secondary market bank loan in an LLC name, so if I want to save on an interest rate as I can with a secondary market loan, I can't inside an LLC (I have to carry it with a bank internally as a portfolio loan as an LLC). Does an umbrella insurance policy cover me the same as an LLC so I can carry an umbrella policy as legal protection? Positives/negatives? If you give feedback, I'd be really grateful if you could please cite sources. Thanks!

I think I get it...I'm going to need some creative financing to make these numbers happen...like Owner-financing.

Thanks Dave. This makes sense. 

I love the idea of BRRR. But timing doesn't make sense to me. I get that you buy, rehab, rent, refinance, and repeat, but can someone set the average timeline for me simply? So...what bank/regulations allow for any of this to happen in under 6 months? I had a realtor tell me years ago you can't even do a new appraisal until you hit 6 months (I had a home I sold that someone offered my list price at, then the appraisal came in 6k under listing, so they couldn't get financing from a bank, and the realtor told me you couldn't resubmit once the appraisal was done without going through submitting that the appraisal was inaccurate.)

Does anyone have a government reference on how long you have to wait before you get a reappraisal? Is it different per bank, or is it a state-monitored reporting thing appraisers have to do?

My bottom line is, if I want to buy a home for 200k, it appraises for 200k at closing, BRRR it, and in 3 months of work I think it's worth 250k, but the appraisal process won't allow me to do so until 6 months (and the bank won't even consider a new value until we have a year's worth of new rent), how can I possibly do 25-50 rentals in the first year??). I very much want to roll the BRRR method, but it doesn't make sense. Can someone explain this?

Quadruplex in the downtown area. It's a truly outstanding property. What kind of property do you have in Bozeman?

@Josiah Pisel Having done a deal specifically with @Ethan Kanning where he represented us, I can speak to his capacity and ability as being excellent across the board. He took great care of us and I'm excited to do more deals with him in the future. You should definitely have him help you! He knows the market you're looking for better than anybody I know.