All Forum Posts by: Matt Kitchen
Matt Kitchen has started 9 posts and replied 31 times.
Looking for an electrician in Dayton OH. I need a quote on knob and tube rewiring on a triplex. Thanks for any suggestions.
As a buy and hold investor, what are your favorite questions to ask a seller?
Post: First View Inspection Checklist
- Posts 31
- Votes 2
When going to see a property for the first time, what is on your checklist to look at/test to get a quick idea of rehab needed? References to forums and podcasts welcome!
Originally posted by @Cory O'Dell:
Originally posted by @Matt Kitchen:
Originally posted by @Cory O'Dell:
Originally posted by @Matt Kitchen:
House hacking and doing an FHA loan on a 2-4 unit that with some value-add potential seems to incorporate many of the best wealth growing RE strategies...house hacking (someone else pay your mortgage), FHA loan (as little as 3.5% down payment), 2-4 unit (allows the house hack option and provides greater potential for cash flow compared to one unit SFR), and value-add (to force equity/appreciation). This option allows you to take your time while you fix up the units and save money while someone else pays your mortgage, all while forcing appreciation. After a year you can refinance out of the FHA loan into a conventional loan (to ditch the PMI) and repeat. It's basically a summary of the BRRRR strategy as well.
This is exactly how I want to start out. I just hope I can find a good property in a neighboorhood that would need a proper amount of fix-up, but would also be alright to live in for a time. I also hope I will be able to analyze the property well enought to execute the BRRRR strategy.
Something else to add is that if you live in the property for 2 years you can sell without paying any capital gains tax. So if you do a live in then flip house and stay there 2 years before selling (unless that tax law has changed in the past year or so, consult with a CPA for specifics) it would be a good strategy on top of what I originally posted. I believe it's 2 out of the last 5 years, so with that in mind you could live in it for 2 years while you fix it up, rent it out for 3 years and sell it and still not pay the tax on it. Or at that time you may decide to keep it as a cash flowing rental property. Just more tools in the tool belt, as they say!
I would likly do a 1031 exchange in order to "trade up", but incase this takes more time than I plan, this is a great piece of advice!
Originally posted by @Account Closed:
The Dayton reia group, GDREIA, is mostly educational with some time for Networking. Let me know when you are coming and I will meet you there.
Thank you, Janice!
Originally posted by @Cory O'Dell:
Originally posted by @Matt Kitchen:
House hacking and doing an FHA loan on a 2-4 unit that with some value-add potential seems to incorporate many of the best wealth growing RE strategies...house hacking (someone else pay your mortgage), FHA loan (as little as 3.5% down payment), 2-4 unit (allows the house hack option and provides greater potential for cash flow compared to one unit SFR), and value-add (to force equity/appreciation). This option allows you to take your time while you fix up the units and save money while someone else pays your mortgage, all while forcing appreciation. After a year you can refinance out of the FHA loan into a conventional loan (to ditch the PMI) and repeat. It's basically a summary of the BRRRR strategy as well.
This is exactly how I want to start out. I just hope I can find a good property in a neighboorhood that would need a proper amount of fix-up, but would also be alright to live in for a time. I also hope I will be able to analyze the property well enought to execute the BRRRR strategy.
@Lane Kawaoka thank you for the advice. I will go to the local meet-ups and network.
@Kent Hall I am a UC grad, so I still have a fair amount of knowledge about the ghetto around Cincinnati.
Yes, if you have had good luck with those that you work with, I would love to hear your experiences.
I will check it out!