All Forum Posts by: Melissa Kirchhoff

@Brennen McConnell - A few things, one, the house hack thing is good but even around us (and we have pretty low purchase prices) the 50-100k will get you a nice SFH but duplex is stretching it (both sides anyway). And, with 5% down (which there's plenty of even 3.5% conventional loans now a days) you might be limited and have to stick more to a duplex. I'm not positive, but I think most lenders won't be comfortable lending on bigger units with low money down. It's something you should definitely ask.

@Chace Fraser

@Chace Fraser - His point around major attractions is another good point, especially probably something more "niche". Like again, around here, we have a few big state parks that are popular if you were going airbnb type route. Lots of Chicago people come down since it's that perfect, hour and a half drive getaway. If you think slightly more outside the box, I think you could definitely find a good fit. But like Chace said, it's going to take some research on your part. Find some places that fit the bill then visit them and see what you like. Looking at things online and looking at their markets in person is two different things, I don't care what anyone says!

Good luck!

@Samuel Kelly - Anything your imagination could think up could be possible: Owner passed; owner moved and didn't update/trying to keep owner occupied status; someone living there and isn't maintaining it; recently put in a nursing home or similar; long hospital visit; out of area long term, like here we call snow birds.

I would question how long you've seen it's vacant and if you can find if there's a lis pendens on it or anything. Personally, with what I see, I would probably go that route (foreclosure if lis pendens) or owner passed. Keep something at the property, the mail or door hanger and maybe if the family/estate sees it they will call you.

@Ken Nyczaj -  Seems like it would be a positive to most people, assuming the church is decent and in good condition. I'm not even really religious and I would be okay with it, I think most buyers would see it anywhere in the range from acceptable to great.

@Brennen McConnell - The answer to this could be so wide in variety. It depends on how much money you have to buy houses!

However, for me, and I know from listening to the podcast, I would shoot for college towns with decent property prices for my budget. I feel like there's never a shortage of renters (bonus points if you can get something like a grad school or similar nearby as well) and I feel like usually the rent prices are higher than in similar areas. Also, since I find this locally, big companies/factories that do internships or have a flux of people coming in shorter term or for only a year or two at a time and need nice rentals. Since I know that's vague, we have some big factories here that need people moving in a for a year or two, so they don't want to buy, but need things like nice big houses as rentals. Usually they have larger families and make quite a bit. We also get that with local hospitals, doctors with luxury rentals.

Again, depending on your budget and style, I would look into places that fit that bill and will always have that demand for rentals.

@Carter J. - IMO, it would come down to purchase price. I wouldn't invest in something turnkey unless it was a great deal, and if it was turnkey and a great deal, I'd be questioning what was wrong. Granted, there's plenty of great deals that are in great condition out there, but those would be my concerns off the bat. Of course, your due diligence is part of it, but also, we all know with houses that no matter how much you do, you'll still have some surprises.

Second, to @Gordon Starr's point, I would be concerned about the same things. First, the numbers have to be there. Net 1% wouldn't do it for me. What if some big expensive costs come up unexpectedly? How about if property manager or other prices exceed what you're thinking? What if you have a longer vacancy? Can you cover it. Here's the big one, what if you lose your job? If you've thought about this and have a plan, cool. For me, personally, that's too much risk for (and my final point) what gain? What's your long term goal here, to build a portfolio for what? If you're not looking to quit your job (which I think is what most people get into this for) what is your why? That's also important since you're not looking to get lots in rent monthly to replace your income. Is it to have that future security? The 1 house per kid concept? Just to hopefully cash on equity down the line? That answer is going to also provide the answer to if you should move forward or not.

@Kevin O'Brien - To my knowledge, and if I understand you correctly, no. The bedrooms have to have egress windows (or a window that is within a certain distance from floor and a certain width, I can't remember what those are) not just the living areas. So if the bedrooms don't have any windows, no, it can't legally be considered a bedroom.

@Larry Turowski - well said.

I would recommend walking through once just to get an overall concept of everything, layout and room sizes, things like that. Then, if you think it's good, I usually scour a bit more into the particulars. Ceilings for cracks/leaks, foundation for obvious bowing or cracks, the systems (HVAC, H2O heater, electrical box) and go from there. Then, I leave the rest to an inspector. (Sorry, but I have to disagree with Dennis) contractors I've brought with typically don't go on a roof, attic, etc during a showing (as an agent I thank god for that!) but the inspector will. Once you get into the trenches, I think you may learn more of what to look for and avoid, but in the beginning, I think it's money very well spent! Find a good one though!

@Angelo C. - Thank you, that's what I figured! The hard part is the condos that would be comps, really aren't, and the only thing that would be a comp would be really quite a distance (like an hour or so away). So I was trying to get a feel for how they would determine value on that.

@Jon Holdman - Yes, that's my biggest concern, I know how appraisals can go with lots of very close comps, nonetheless not close comps! So I'm wondering how the people that first develop condos in areas without any really went about selling them. Was it just all cash buyers?

@Errol St Marthe - Just hang in there and keep your mind open to different opportunities! Look outside of where you were considering and consider different property types. Open up your MLS search and tell the realtor to keep an eye open for something that may not be within the scope of what you were originally considering.

I feel like I was in the same situation (very frustrating!) and ended up lucking out into something better than all the ones I lost (in hindsight of course!) so keep hustling while you wait (I was looking on-MLS and off, wholesale deals, craigslist, Facebook, FSBO, googling stuff, so don't leave any stone unturned!) but know that sometimes, it's out there and just waiting for the right time. Trust in the process! (sorry, my inner hippie side coming out but I believe it's true!) Good luck!

@Cesar Roldan - it goes in your pocket? (Or whoever buys it) They just want the taxes covered!