All Forum Posts by: Karen O.

I have a guy who does a power wash and gutter cleaning every 12-18 months.  Keeps me on his radar when I don't have bigger projects. He farms it out to his younger crew members. Worth the $.

No.  Nothing you can say.  If they've never done it, they can't see how it could be done. Best to go your own way.  

Read. Listen. Find a REIA group & attend some meetings to find others who are doing what you want to do. Find local RE agents and owners of dplx/trplx/quads and offer to buy them coffee and pick their brains.

The best way forward is to go forward.  Slow but steady to find your path.

Make sure to consider all the costs of owning (mtge, insurance, taxes, plus heat, water and trash) + any deferred maintenance items.  Also, could you househack or Airbnb to get some additional cash flow to help lighten the load?. But it sounds like a great idea.  You can't know if you don't ask. Best of luck.

She's a beauty.

Best of luck.

Generally, No.  Might think differently if I live nearby.  

A few thoughts, if I were you:

With over $400K in rental income annually from the six properties (if I'm reading right), I would be very happy to stand pat.  However, if finding higher yielding opportunities makes sense for you, do so as long as they don't result in more headaches.  

If you have Cap Gains on the the 4 SFR's, you might consider 1031 exchanging these individually or collectively for better yielding opportunities. You could roll into a larger MFH or commercial property or even consider a syndication deal. You'd need to do your homework to find high quality syndicators with long track records & quality deals. But once in, it should be very passive.

Being a lender is passive too but may require you to always be on the lookout for new projects to fund.  Also, as previously stated, the interest earned would be taxed at a higher rate.  I wouldn't make any private loans for less than $50K.  

If you decide to invest OOS, be sure to have your CPA check the rules for the state you'd be investing in.  There may have a state income tax requirement for income earned there. 

And finally, under the TCJA of Dec 2017, HE loans and LOCs are no longer tax-deductible. However, the interest on money used for capital improvements to a home is still tax-deductible, as long as it falls within the home loan debt limit. So,for the LOC collateralized by investments, I'd consider paying it off if you aren't earning more than the interest rate you're paying and as long as you can retain the LOC itself. If you can keep the LOC open without re-qualifying, those funds should be readily available to you when another investment opportunity comes along.

Congratulations.  Looks like you did all the right things. 

And best of luck on your future endeavors.  

As a newbie, if you're a newbie, you should become familiar with J.Scott's book on estimating rehab costs.  

If this is the first time you're attempting such a project, you might want to consider partnering with someone who has done it before.  Sharing such a big project and working alongside a seasoned flipper would be worth its weight in gold.    

Finally, if this is truly your first project, 6 months isn't a long time to do a complete rehab of a house that has good bones. Don't believe what they show on TV. You may need to find a great GC as well as other trades (elec, plumbing, roofing, etc). You'll need to obtain empty house insurance, pay local property taxes, if any and get utilities turned on.  You may need to pull permits. As we barrel toward winter, you may have weather issues to deal with. There will be plenty of $ flowing out before you'll be collecting rent from a tenant.  

In short, the house needs what it needs. If you're not prepared to do whatever it takes, then pass on it and seek out a less involved first project. Something that requires just a bit of polishing. Then graduate to a bigger, more complex projects such as the one you describe. With each project, you gain knowledge that will help you with the next.  

Whatever you decide, best of luck.   

If you're not sure and want to feel comfortable about it, and don't have a GC you trust, have a roofer inspect it for you. There could be other issues that you don't see.  Otherwise, I agree with everyone else.  Replace it when you need to, not just because it's 10yo.

Never too late.

I recently met a man who bought his first property at 19. A 4-plex.  He was trying to impress a girl. He couldn't sign the contracts by law, so got his dad to co-sign. Since then, he's bought/sold many homes, started a storage facility, developed land, built on spec, built a farm and leaseholds a hotel among others.

in short, it's not too early to start.  Take your time. Know what you can and can't do and find ways to achieve your goals.

Good luck.