All Forum Posts by: Justin Hammerle

If you are renting your apartment, I would first check to see if your lease agreement allows subleasing, if not that kind of stops you right there.  If it does allow you to sublease - you need to check in with your local town/city to confirm whether or not any type of licensing/permits are needed to operate.

Generally no.  There are some exceptions, see below link p8-13:

https://www.hud.gov/sites/docu...

Your on one now, you could use the BP calculators. They usually give you 5 free reports before you need to upgrade to a paid subscription.

Hi Jerod - given your circumstance if I understand it correctly; I don't think you will be able to qualify for any type of bank financing.  Your options are really limited to seeking financing from family/friends or from private sources.  There are limited options for private financing that allows borrowers to occupy properties.  If your goal is to acquire another property while renting out one and living in the other, rather than moving out of your existing home perhaps just buying a small investment property to rent is the path of least resistance.

Keeping an old existing property on the land is likely to impact your total density.  I would first determine how much density is lost by the existing building versus building a new single structure.  based on that, make a decision on whether to keep it or raze it and redevelop the entire parcel.

Hi David, connect with an experienced contractor you can trust; just note that in this business risk will always be present regardless of your experience.

The BP famous BRRRR strategy is something to consider and study if not already which takes into account both equity appreciation and cashflow. I believe the idea that a fixed up property will cashflow better is not always true, generally you will be buying at high prices and will likely have to dump a lot of your own equity in order for it to cashflow.

Hi Ace, do you have any local agent connections?  Local agents who work with other investors are a great resource to get referrals for equity/debt partners on deals.

Nice deal!  Also really like your approach and strategy here with having essentially two business lines one supporting the other from a capital and risk standpoint. 

I would just say having gone through this quite a few times the process is a bit more complicated than a few bullet points.  Buying a raw lot takes on quite a few risks not limited to understanding your utilities, infrastructure, and natural resource restrictions.  Also, new construction approval can get fairly political on a town to town basis.  

If you are going to go this route I would suggest at min for your first deal to make the closing on the raw lot contingent on approvals to protect your liability.  

Hi David congrats on your purchase. Would need to know at min - purchase price, finished value of property and finished rental income to make a fair recommendation.