All Forum Posts by: Keith Hague

@Odie Ayaga the point to thinking through all this is that if they ARE interested in seller financing, I want to have an educated offer ready to go. I wouldn't want to find out they are willing, and then tell them to wait until I research what my offer should be.

That's absolutely right. Thank you for your advice. I'm eager to see what I find tomorrow

@Bryan Devitt that 10k is after subtracting the initial downpayment and 20k for rehab costs (doing the work myself)

Using the 5%down/5%interest I would be at 28k after subtracting the initial investment.

At 80%LTV I would have 50k equity still tied up.

Making the new mortgage 1100-1200/mo. Rents between 13-16/mo. (I know this isn't amazing cashflow but considering I'm getting an assetthat will grow over time, it seems good to me and my high risk tolerance)

@Carl Millsap thank you for the constructive feedback!

I've personally remodeled 2 of my houses and helped build a house when I was younger so I'm not worried about doing the remodel myself and getting some sweat equity.

Sounds like they stopped at a similar time. From the photos I can see that the electrical is new and the windows are new. Looks like all the gut out work is also done (minus the doomed addition).

I'm going to walk the property tomorrow and I wanted to have an idea how to make this type of offer if I like what I see. Maybe I'll call a contractor and pay them for an hour to walk the property with me.

I just found a house on the MLS which was actually listed by my agent so I learned some valuable info.

The flipper backed out halfway through the remodel because they discovered that an addition wasn't constructed correctly and needs to be removed. Leaving the HML with the house.

If my numbers are correct, this house would be a BP approved BRRRR leaving me with ~10K in profit when it's all done.

So what I'm thinking is offer to pick up where the flipper left off with the HML seller financing the house to me. It is listed for 150k the comps are 250k. Offer 10% downpayment, 8% interest only. Balloon payment in one year or less.

Does this sound stupid?  Is my interest rate off? Is there something else I should consider?  

I purchased my first rental property recently, I created an LLC and got a business bank account, I read Brandon Turner's book. All the things. But now I'm more busy with work and I don't think I have time to self manage the property.

So I'm considering using a manager.

But I feel obligated to use the LLC.

Any suggestions on creative ways to use a manager through an LLC? Or is it not worth the trouble?

I have recently purchased my first dedicated rental property (3rd home purchase). I have filed to start an LLC using an attorney, I have gotten a rental contract from the same attorney.

I am also reading Brandon and Heather Turner's book on managing rental properties.

One of the things they mention is they don't like their tenants to know their personal address. I feel the same way but they don't seem to mention what the alternative is.

The attorney put my address down as the address for the LLC (which is fine), and the address for "Notices".

My question: Is there an alternative to giving them my address for mail?

I've thought of getting a PO Box but I don't imagine I will receive enough mail there (or remember to check it enough) to justify its existence.

Thank you very much for your time!

@Tyler Kaye I used the VA loan to purchase my property in San Diego, which I still own. You ARE able to have two houses with a VA loan but they will "check your entitlement" for the second house and if you don't have "enough entitlement" then you won't be able to use the VA. I had just returned from deployment when I bought the Oak Harbor house so I had saved plenty for a Conventional loan downpayment. When I sell the San Diego house in January/February, then I'll have full VA entitlement again, which I'll take advantage of with another SFR here in Oak Harbor. I hope this answered your question!

@Scott Price I wasn't aware of one on the island. Do you have a page/website somewhere?

First house; I purchased a 3bd, 2bath house in San Diego, California with a VA loan in 2016 and invited 2 of my friends to move in with me and split the cost of the mortgage. Although this was a great learning experience, I still paid about the same as them so not a true househack. Second house: I purchased a 4bd, 3 bath in Oak Harbor, Washington with a conventional loan in May of this year. I've rented out the extra 3 bedrooms, one to an acquaintance fron San Diego, one from craigslist, and one as a referral from a work colleague. Mortgage is $1950, rents($750x3=$2250), I include all utilities so at the end of the month I'm paying less than $150 to live here. Thoughts: Friends can be hard to rent to but it's not impossible. Even though I wasn't able to truly house-hack in San Diego, purchasing the house stopped me from throwing my money away on someone else's mortgage, as well as introducing me to the idea of real estate investing. It also allowed me to build equity through appreciation! The future: My friends in San Diego are currently moving out of the house, I plan to sell and use the (large) appreciation to buy 2 condos as rentals in Oak Harbor in 2019, as well as another single family house with the va loan (0% down), which I will move into and house-hack. Thank you BiggerPockets for the wonderful service you provide!