All Forum Posts by: Linda S.

@Eric DeVito,

Real estate scares a lot of people, realize they are being cautious for you, because in there mind, they want you to be happy.    Just smile, and say  "thanks for the concern"... and know you got this in the bag.    My theory with real estate.. you need deep pockets and thicker skin.      Could have a bad tenant-- absolutely, it's the nature of the beast, the more you are expecting and ready for it, it's actually not scary, just a procedure.    

I agree with most people, just don't talk with them about it, a simple "it's going well" is all you need to say.   People want drama, don't give it to them.    BP is a wonderful community, get involved, bounce ideas off other investors who have been there, and can offer guidance.    If you want to talk about stuff, share anything, whether it's positive or negative,  start a discussion here!     

Hope this helps!     Just remember-- their concern is coming from a good place, and just smile, and say you appreciate their input.. and end the convo.   That's the good side, and the correct thing to do IMO.

The bad side, is saying just wait, it will be AWESOME and feel soooo great to brag about the money coming in!    Guess who's getting XXX amount each month for being smart a few months or years ago?!   When you get good tenants, it's pretty easy and a very fulfilling thing to do! 

~Linda

Hi @Eugene Lee,

Congratulations! Its also a very good question! I'm not sure about CA, but in VA, any real estate acquired *BEFORE* the marriage isn't a marital asset, so anything before is not in question.

I'm in a similar situation, and depending on how you want it split, it may be easier to make it in an LLC. If your future wife is your business partner as well, why not make an LLC, and have you and her both own 50%? That's how me and my fiance have it split up, so if anything happens, there's no fight for whose property the investments are.

If she's not involved, and the investment properties are strictly your thing, and you want to make sure, I would talk a lawyer.  No offense lawyers--I HATE lawyers. the bad ones will make you HATE lawyers...  It's $$, but it's worth the peace of mind.    It's cheaper to be proactive than reactive. 

Thanks all for your comments and thoughts!   I think what I might do is get the concrete done in the spring, and have the actual garage built in the summer to break up the costs.    My finance is very handy, however we have our 4th house that needs renovating,so the investments override lifestyle right now.   Thanks again! 

@Colleen F., PMI is removable on conventional loans, but not on the FHA.

Hi Tim,

I have found, the secret to getting the really good deals--is finding houses that are cash-only. When they are cash-only, you wipe out like 95% of buyers, since a bank won't finance a house that doesn't pass. By going cash-only, we often get the houses at 30-40% off MLS. Find the ones where it says "as-is" and throw a low offer, they might just take it! Also, auction.com is where we just got our 4th property, for pennies..... but again, it's a cash offer... cash is king!

Hope this helps!

Hi BP,

I just wanted to get your opinion/thoughts, because I'm not a very frugal person when it comes to spending money on myself. I bought a house in 2015 for $155K, 1100 sq ft -3/1 bath in Richmond in a really great school district, but it needed a lot of cosmetic upgrades. My goal is to add 20% equity so I can get rid of the $70 PMI month on my mortgage, which I can apply to have removed in September 2017. We have re-done the kitchen (upgraded appliances, painted cabinets, new knobs, etc), opened up floor plan, uncovered hardwood floors, and will soon be building better closets.

          We are looking to add a garage,  probably will cost around $8K for a metal garage, and my finance loves tools, builds tons of things and does a lot of side jobs.  I have also always wanted a garage, and think we need it for extra storage.       

Do you think it'd be a good investment to add to the house?  Anyone else have a similar experience?

Many thanks, and Merry Christmas!

~Linda

Hi @Chris Malo,

Petersburg has some great opportunities, but you just have to be aware of the really bad areas.   We really like the Blanchard Cemetery neighborhood, as it's close to fort lee and 95.   There are certain areas of Petersburg you couldn't pay me to buy!       Message me some more details of what you're looking for, we have a nice realtor I could set you up with.   It also depends on what level of work you're thinking of doing, in general we do full gut jobs, and full renovations.   Walnut Hill is a really nice area..   I look forward to chatting with you!  

I recently purchased a foreclosure from there, and the process wasn't fun.   They hire probably the cheapest closing and title companies possible, so the experience isn't that great, but at the end of the day you get a good deal.   Just be ready for anything, as it's an as-is, cash only deal.

If you're looking for the quickest fixes that will make it most marketable, I'd say a fresh coat of paint and some new floors!   My other quick fix is painting/resurfacing cabinets, and adding new knobs can make a huge difference. 

@Lynn Hill-Torres,

I can't really add much, as I'm not in the flipping market, but let me just say .. I understand.. I originally estimated  $10K-$15K in renovations, what turned out to be around $35K, so you never really understand the cost until you're in there, dirt under your nails and at the verge of screaming because of contractors.  I also sympathize, because initially, to save money, we hired a friend who did, this.. again, big mistake... he caused us SOOO MUCH STRESS!  It sucks even worse that it's your brother.. sorry!  He gets paid in sweat equity.. if he demands the $500/month, tell him the total amount is coming out of his portion when you sell it...  I just wanted to say, I feel your pain!    Never mix business with family/friends, and have very clear written contracts of expectations, including dates, material costs, etc... good luck!

Hi Ryan,

If you are moving in March, if you think you can have it cleaned and ready to go by March 10th, I'd say that's when it's available.    No use in letting it sit unattended.    I'd say advertise it in mid-January or February, normally people have to give landlords a 30-day notice if they're month-to-month.    Take pictures and post it, no harm in saying it will be available in March!

I think the average in VA is around 10%, but I've heard anywhere from 8-14% for a management company. If you have a plumber, electrician, HVAC technician already, I personally would try and manage it myself. If it gets too much, then you can hire a PM. Hope this helps!