All Forum Posts by: Luka Milicevic

 This right here....

I don't see a different way for current entry level folks to afford a house. 

The other alternative that I am seeing is smaller townhomes being built well outside the urban core. Where younger generations are settling for a 1 hour+ commute to be able to afford a house. 

The young folks who are affording the larger, more expensive homes closer to the urban areas are receiving large down payments from parents to help out. 30-40% down payments. 

I don't think the article factors in the overall cost of living increase. All things being equal, you need EVEN more of an income to afford the same house now because true inflation has been about 20%

 Hey Cody, I did this exact thing in 2019 when I bought my first apartment complex. I found a partner with a high income/net worth that didn't have the time to do management or find deals. I found the deal, put together all the pieces - financing, mgt, etc and my partner brought the downpayment. 

I did an 80% loan from a local bank and a 10% seller carryback. My investor brought in 10% of the down payment and we closed. I took care of everything going forward as well.

Comment above said seller financing is a pipe dream??? Not at all, just have to find the right seller. Very few will do it, but it is 100% out there. 

Your biggest asset right now is your time and your hustle. If you're willing to put in the work and make the sacrifice you're going to succeed. 

 I sort of did this strategy over the past few years but have a tough time making sense of it right now. 

My HELOC used to be in the 2s and 3s, now it's at 8.5%. I can't really do much with it now. Prices are high, rates are high.

There is risk involved with leverage and you should only take out how much you know you can cover. 

In my situation, I always look at my heloc as temporary financing until I can get a long term solution. So, I use it to close cash in a few days and then refinance the property, or fix and flip it. I wouldn't keep heloc financing long term.

My biggest advice to myself 5 years ago was to not over leverage. Both for the sake of stress and well being of my overall financial plan. 

Great advice on the "here's what you should have done" but now let's help out on the current situation....

Are you sure she hasn't moved out? 

Great first step that you took by offering to help with moving. Maybe offer cash for keys? Sucks, but it's fast and less expensive than getting an eviction started.

I was in this situation before where a previous owner did NOT have a post close stay in the contract but the extended family decided they weren't moving out. I called the police, they showed up and told me it's considered trespassing. They told me they can arrest them now if I wanted. I told the officers I didn't want to do that and I gave them adequate time to move out. 

First try offer cash for keys, if you can't get that to work then get the attorney involved.  

@Aaron Washington The main reason people are booking STRs over hotels is EXPERIENCE.

Anything and everything you can do to create an experience is where you should be headed! 

My wife and children stayed on a working farm and part of it was they let us feed the cows and tour the barns. We will always be booking that same place when we go back to visit because of how awesome the experience was. 

@Pranav Parikh speaking from experience having had many clients set up an STR remotely - based in CA and setting one up in Nashville.

First thing to do would be to contact your boots on the ground for a referral. Get a recommendation for someone that does this sort of thing...there are many.

The most success that my buyers have had was to get a local designer that does the design + install and set up. 

There is no "cheap" way to do this sort of thing. They charge a bunch to get everything designed, delivered and set up. 

I have had a client fly in for a week, order everything on Amazon and then set it up over the course of the week. 

In my experience, one thing to consider is the "type" of property

I have a property where I have a tenant that is usually late. 7months/year late. They end up paying but it's a hassle.

The type of property is always going to attract this type of tenant. I know because it's always been the same, so I can replace them but I will more than likely have the same problem.

Brandon Turner on one of the early episodes of the podcasts talked about this where he had a house that was purple that would always attract "weird" tenants. Just like renting out a basement. It will attract a certain type of tenant. Just something to think of. 

@Sophia Boro

Cost and headache....but mostly COST. 

I don't do full gut renovations so I haven't had to pull permits on things like electrical and plumbing, but I do new construction projects where you have no choice but to pull permits. The problem comes in when you have to call inspections for all the trades. You sit and you wait....

With new construction waiting isn't as bad a renovation because your holding cost is around a 7% rate, where as a renovation you are probably on a hard money loan at 12-15%. 

In my market of Nashville, the folks doing flips stopped pulling permits when the electrical inspections started to take over a month. I don't at all support it, but I understand why they started doing unpermitted work. We can all sit on our high horses and say "that's not the right way" but Imagine sitting on a project for a month not being able to do absolutely anything, paying 15% interest while you wait for the city to get to you. 

There are also some municipalities that require permitting for jobs over $1000. So if you have to paint your house you need a permit. I think that is crazy!

I just built a deck at my personal residence and the permitting process wasn't terrible, but it took about 2 weeks to review my initial plans, and then another week to approve and issue the permit. The inspections also seem pointless. The plans had reviews of my spans, cantilever, etc. WHen the inspector showed up for framing inspections, I was expecting him to measure my spans and cantilevers and make sure all my connections were solid. He looked at the deck, shook it and said "yep, that's not going anywhere" and signed off. 

 Hey, I'm in the Nashville market. Happy to answer any questions you have out here.