All Forum Posts by: Katherine S.

I don't know if the numbers work for the rental, but one thing I can add is that a verbal offer is not the same thing as a written offer.  Meaning that one is theoretical and the other is real.

I'd make a low ball offer, and keep making it periodically if he turns it down.  If he really wants out, at some point, he's going to face reality. 

We kind of backed into being landlords, and didn't have anyone pulled together. I'm struggling now to take the next step without having a good idea how to do the rehab in a BRRRR. I know enough now to avoid having a house sit around empty while I figure it out.

One thing I would recommend, however.  Have your financing lined up before you make an offer.  It was tough to find lenders willing to do small mortgages for investment, so I had to really scramble.  Some lenders will only allow you up to a max of 4 mortgages, and others will give you another 4, but only up to a max of 10, including your home.  Luckily I used up the "only 4" lender first, and have moved on to a "second 4 to a max of 10" lender now.  Hope that makes sense.

Hypothetically,  if I were to take a loan out of my solo 401(k), would that appear on my credit report?

@Freddie Williams I've been struggling with this very same question.  It seems to me that the best way to do this is to start by paying cash for the first one, which should allow you to finance it shortly after rehab as a first mortgage, which also saves you the costs of one closing.  Hopefully you've increased your cash out which would allow you to move on to the next project in the same way.   

Unfortunately, the trick is coming up with cash for the first one.   I've been thinking of partnering as one approach, perhaps on a flip. 

@Natalie Schanne I admire your enthusiasm, and envy your forward thinking at a young age.  House hacking is not something I could take on, but that is because of my physical limitations.

But I strongly encourage you to wait until after you've had your baby and have experienced what that REALLY means before beginning such an undertaking.  You might be glad DH put on the brakes, at least until after you are getting a complete night's sleep.  A construction zone is not really safe for newborns, infants, or toddlers.

My parents own a self storage business, and I don't know if there is anything bigger than a cash cow, but if there is, that's what this is. You don't need a lot of employees, but you do need people you can trust. Location is key: it's located in an urban area, close to on/off ramps of a major freeway, and just off a major thoroughfare. As a business to run, however, to me it would be too boring, with nothing to do all day but haul checks to the bank. YMMV.

Is $1695 your mortgage or is it PITI?

Without pushing any numbers around, my first reaction is that you may have pulled too much money out to have any positive cash flow from a rental.

@Eliot M.

Could you buy out the neighbor?

@Austin Fruechting

It's a good thing I've been looking at these numbers all day because hubby just ran across a property in our sweet spot and just made an offer!  Lots of competition though.  We're going to be the first offer in.  I feel rushed, but the Cash on Cash looks as good or better than our other properties.

We won't get where you are by being timid!