All Forum Posts by: Mason Hickman

@Mike Testa

You should check with the state laws because it looks like you need to keep security deposits in escrow funds, not commingled in your business savings account. I got the below from the New Hampshire Department of Justice website. See the bold part are the very end.

The Law

New Hampshire's law on security deposits (RSA 540-A) defines a security deposit as any money that a tenant gives to his or her landlord other than the monthly rental payment. The name given to the payment - cleaning deposit, last month's rent in advance, etc. - does not matter. The amount is a "security deposit" if it is anything other than the monthly rent.

In New Hampshire, a landlord who owns more than six units can ask for no more than one month's rent or $100, whichever is larger, as a security deposit. The landlord must keep security deposits in a special escrow account or post a bond with the local municipality to secure repayment.

@Devin Collins

I think the first step is determining if it is a deal that makes sense financially. If not, you'll have a very difficult/impossible time selling it. The reason I'm approaching from this angle is because by saying ARV, it makes it sounds like it needs work; how much renovation is needed? With only an $8K spread between the purchase price and ARV, it seems very thin. What is market rent?

@Jeff Chaves

Hi Jeff, 

Welcome to the Bigger Pockets world. I think you have the right idea starting with a house hack to get your feet wet and start reducing your own personal expenses. BRRRRs are harder to come by in this area due to the home price/rental ratio; they exist but they aren't as prolific as you would think by listening to all the discussion on the podcast, etc. 

Where would you be trying to house hack?

@Travis Carter

I agree with Twana. As Mark Cuban says “you gotta crawl before you ball.” Plus, you might get into it and find out you want to adjust your strategy/area, etc. Good to test it out first. There will be more deals out there.

Sales in our area usually trigger a reassessment so I would be careful about using the current taxes. When I underwrite deals, I assume the taxes will increase to be based off of the new purchase price.

@Skylar Mcgee

Have the landlord deliver one of the units vacant at close.

@Charles Stein

You want the hot water baseboard heat as a backup even if you do decide to install hyper heat mini splits. There is a diminishing level of heat as it gets colder.

@Seth Preston

You're young, don't let lifestyle inflation happen. Live below your means and save everything you can to start investing. 

@Vilena G.

Without numbers, it will be hard to weigh in. That being said, it will also depend on what your goals are: do you want to be in the rental business or are you looking for income through flips?

Nice job @Rhyetta Musser even if it cost you some blood, sweat, and tears, I'm sure you learned a bunch! 

What are your assumptions on rent and expenses that give you your $100/month cash flow? If it is a true $100/month in cash flow after expenses and you took $10K out of the deal in extra cash, I'd hang on to it as a rental and try to do as many of these as possible.