All Forum Posts by: Keith C.

@Russell Brazil that’s a bummer; thanks for the heads up! Is there anyway people work around this? I.e, not do the kitchen area or just not market it as a separate space? I’m very interested in knowing how I can be flexible to make the house hack work in some way... thanks!

Some excellent things to consider! Thank you all!

We have a split foyer. No kids yet, just dogs. We only live upstairs and only go to the basement for laundry.

Our basement is finished. We would have to take half bath to full bath, section off split level with locking door (separate French door access for prospective tenant already); finish utility room by adding small kitchen.

We will need to put our own laundry upstairs.

Then it would be a full basement apartment (water access neighborhood, boat ramp, etc Annapolis, Md 21403)

Questions:

Should we pursue all those upgrades?

Should we Airbnb or long term tenant

What are typical laws we need to consider or restrictions

Any other major considerations we are missing?

Thanks!

@Nicholas Aiola Hi! I'm buying my parents place soon. It needs TLC, current value $300k; they are letting me purchase at $275; ARV is $365k. I have a quo to do 35k of rehab to get it rent-ready. Great area should rent for $2200ish. My bro runs a mortgage company; considering conventional 20% down.

Is there anything I should be aware of with this transaction not being at “arms-length” (family involvement) regarding taxes? Is there anything I should be pursuing? I want to get my folks cash in hand and not do any kind of seller financing, etc.

They recently loaned me 25k and one thing they did say is that I could pay $300k for the home and essentially pay them back by rolling the $ I owe them into the purchase price. Should I consider that and perhaps the rehab cost too? Buying the home for $340k?

It seems with that strategy the property won’t cash flow, but I’d have less cash in the deal...

Strategy aside, is there any other tax concerns or benefits I should be considering with this pursuit?

Thanks a million in advance!

Keith

@Jake Davis thanks for your feedback

Hi, I'm thinking of buying my parents home in Arnold, MD 21012. Does it make financial sense to do so if ARV is 365k, I buy for 275k and it needs 35k of work? Taxes 3700; hoa 175/yr; ins $1000; first preference is to buy and rent (rents $2,200ish) 4bd / 2bth...plan would be conventional 20% down 30/yr...if I refi after rehab won't I get even less cash flow or negative cash flow? Thinking I might stick with first loan, not refi and just keep extra money in the deal, thoughts?

@JR T. When you said you have rentals downtown, did you mean Hagerstown or Frederick? I’m looking at multi in Hagerstown but flexible. I’m wondering if all of Hagerstown is bad news? Also any affordable multi options in Fredrick? Thanks!

@Tim Wieneke can you please explain your reply to a newbie? Thanks

How much does a cpa usually charge?

This is very helpful! Thank you. So if I paid cash for one property and have two more pending (cash paid via HELOC). Is it too late to take advantage of your "step 3" in your awesome and detailed post on the subject? I realize I may not have optimized the structure in advance. Wonder what my best strategy is at this point?