All Forum Posts by: Marcus R.

If it makes sense for your market...for comparison run the numbers on a new build that you would self manage.  This may be a viable alternative option that's semi-passive and you have the advantage of local market knowledge.

We require a 670 Credit score.  No income requirements but we do go through their credit report in detail and ask questions as needed.  I think in theory income requirements can work but we all know people with high incomes who are still paycheck to paycheck. It's the behavior that's the problem, not the income. 

#1 and #4 seems like overkill for a 5 to 30 min drive.

ISPs can see individual IP addresses so I think the OP is OK if any user violates the terms, conditions, and/or AUP of the ISP but I agree I still wouldn't provide the internet.  I actually think the OP is violating the terms, conditions, and/or AUP by reselling the product unless they have an executed reseller agreement...

Internet is a commodity with low switching costs so the markup would be razor thin so I wouldn't think tenants would be willing to pay much extra and I'm sure they would want some performance minimums and you'd be the customer of record who'd need to call in trouble.

Since it's 5 mins from your work why not drop by once a month (you could do this on your lunch break) and walk the property.  By automating too much away you the run risk of slowly thinking "I wonder why I haven't heard anything? Is the building still standing? Did tenants vacate? Are they smoking in the property? Did they get pets? Etc..."

Agree with Travis...best course of action is to hop on a plane.  They're charging you $20 to change an outlet cover and $50 each to change bathroom vents...

If you're willing to pay $17K, what's another $1K for a plane ticket and hotel for a few nights (check with your CPA but this travel should be deductible if the primary reason is for business).  I think you can knock this down by 50% by doing some of this yourself.  At the very least just a handful of items DIY will cover your travel costs.

Let em walk.  It won't get better.   

"Sounds like this place isn't a great fit for you, so we'll waive any early termination penalties and please vacate in 30 days.  Normal security deposit process will apply for any damages."

@Steve K. is the resident Boulder expert so I'd look into his advice.  However if it was me, I'd go with option #2.  

The $89K HELOC is a beast but if need be you can bring on another family member/friend shark tank style in exchange for some of the equity in the property. It also sounds like you have a solid savings rate to really put a dent in that if need be.

Boulder is historically a strong appreciation market and annually ranked as one of the best cities to live in.  Based off that I'd hold onto it and because of what Coach Prime and the buffs are doing.  Not to be a prisoner of the moment but he's bringing in a lot of $$$ to the community and we don't know what the future holds however I think Boulder is trending up and not down over the long term.  I believe Apple and Google are expanding their Boulder campuses as well. 

Oh wow, learning a lot on this thread.  Great points of view that I never thought of.  I was also in the camp of buy materials yourself for most of the reasons David Greene has highlighted.  

I guess as long as I can use a credit card with the contractor for final payment of the materials it's all the same.  My main reason for wanting to buy the materials yourself are the rewards/cash back.  It's a real nice benefit on some of these projects.  So far it's worked out as a few of my contractors place the orders with their distributors and then I call in for payment (@Svetlana Kazantseva - this might be a good compromise).  

This assumes real estate is part of your retirement plan and it is a risky play but do you have any retirement account reserves you could tap into for the capital call?  This is provided you believe in the direction of the project but just don't have the money on hand.

You'd incur taxes on the distribution but effectively you'd be converting pre-tax to after-tax and the loss of income acts as a "tax shelter".  If this project is then successful you could place the funds back into various tax advantaged retirement accounts as an after tax contribution. 

To keep your other reserves in tact see what you can come up with through rideshare/food delivery/etc...You're in Dallas so it's probably more than you think if you work Cowboys games, concerts, college football, early morning airport runs, and/or late night. 

@Mike Anderson - Love a good sports debate!  In hindsight, yeah I'd make that trade 10/10 times but at the time I would consider it to be too risky.  How it relates to the OP is he has a homerun asset already, I'd hang onto it vs chasing something else.  

The numbers will only get better with time and he'd have to 1031 which adds some add'l complexity.  No wrong or right answer but IMO I think the best dynasties draft good players (assets), develop the players (assets), and keep them. 

I think some lenders are still doing 15% down for investment properties so that can be an option.

As crazy as it sounds I'd put some more thought into moving and doing another house hack.  Moving is usually the easiest option.  Flipping is sexier than moving but it's not easier than moving.  You have to deal with contractors, supply chain, timing, permitting, finding a great agent etc...I'll mention contractors again because finding great ones are that difficult.  It's not that they don't exist but what incentive does a good contractor have to stop what they're doing to work on your one off small job? (speaking from personal experience).  With a flip the clock is always ticking and even more so with rates going higher.  And don't forget the taxes on the backend. 

As a launch point I always recommend the live in rehab.  Find something that needs some love but is liveable.  Update the kitchen/bathrooms, new coat of paint, floors, and landscaping.  That'll take you plenty far.  There's also additional things like finishing a basement, adding/converting a garage etc...  It's just so much easier and less stressful if you live in the property.  Still have to deal with the problems above but now timing isn't an issue.  You can interview several contractors (verify their good work) and take a chance on newer ones since the risk is lower.  You can also see their work in action and learn more about the process.  You have to be there for 12 months so find 12 items that need to be corrected and knock off one each month.  Depending on your equity position you can ride it out another year and get some tax free cap gains or move and convert to buy and hold.