All Forum Posts by: Michael Doherty

@Michael B. @Jamaal Johnson Thank you both for the responses. I guess I should explain my situation in a little more detail for it to make sense. 

Currently house hacking a duplex with FHA loan. Because I have very little equity in the house, my guess is 5%, I cannot Refi or take out HELOC.

For this reason I am only left with a few options- the BRRR strategy makes most sense to scale as quickly as possible. I thought I could have private money along side my own personal money to help with the down payment and pay the investor off when I REFI out of the note.

After doing more research it may just make more sense for me to save up for the entire down payment and use a hard money lender. Thoughts? 

I recently got off the phone with a lender and he explained to me that if I was to use private money to help fund the down payment on my next deal, the funds would have to be in my account for 60 days. I was always under the impression that I would find/present the deal to a private investor and then get access to the funds to buy the property (in conjunction w/ my own money). 

I suppose my disconnect is.... it doesn't make sense for a private investor to give you thousands of dollars to sit in your account waiting for the right deal to pop up.... just to satisfy that 60 day rule. 

Any insight to this would be helpful, thanks! 

@Alex Bekeza I use Venmo for collecting rent. Has worked pretty seamlessly for me so far. 

I know there has been a lot discussed on here about whether or no condos are a good investment however, after reading countless articles and listening to the podcasts I am still torn- which is why I would like to get input on this specific deal:

Off market deal 2br 2b updated unit. The woman is willing to sell at a discount to avoid realtor fees. 

Purchase price 90k

Market Value or ARV based on comparable comps are 105-110k

Income: $1250 (conservative) 

Taxes: $1800 per year

HOA: $235 per month

Total Operating expenses: $542

P&I: $532

Purchase Cap Rate 9.43%

Cash on Cash ROI: 10.24%

Monthly Cash Flow $174 

----I included 5% for vacancy, repairs and cap ex however the cash flow should be higher than $174 because everything is new in the unit. 

The numbers work however, it is not a cash cow. It is only attractive because it's something that I could own that should be maintenance free (for the most part) and have a majority of the equity paid down. However, even though it's off market, it still isn't a great deal. I appreciate all thoughts and comments! 

@Ryan Deasy @Peter M. Thank you both for your perspectives. It sounds like everyone is against the shed idea and to outsource this task (easy albeit) because of the opportunity cost essentially. Or to your point Peter think about a trailer, although that could be expensive as well. 

I enjoy doing the work on my own house but I could I could see it becoming cumbersome the more properties I acquire and it may just make sense to build the cost into the numbers.  

@Michael Noto great insight's, I appreciate it. I did buy a push lawn mower as well as a weed trimmer and it's worked fine so far. I have been storing the lawn mower outside under a tarp but it would be very easy for someone to walk back there and take it. Someone already store my weed trimmer off my front lawn this year.... so you can see why I was thinking a shed for safe storage. However, I agree with you and outsource snow/lawn for the other units. 

Hi all,

I currently own a 2 family home in New Britain, Ct. I do all the maintenance and I plan to do all the maintenance (that I can) with all my future houses up until the point of 15-20 units. My current Multi does not have a shed or garage which makes staying organized with yard equipment ect. not easy. My question to everyone is.... What should I do for storage if my plan is to only be here another year or so and house hack somewhere else? Trying to think of the most logical plan for long term.

1. Buy a shed and keep all equipment at this (current) house? But then have to go back and access it every time work needs to be done at any house?

2. Do not waste money on a shed (at this current house) and use the money to invest in an inexpensive truck and tow equipment from house to house? 

3. Wait until I have my own single family house (could be years from now) to buy a shed and store equipment. 

4. Hire out for snow removal and lawn care and save money on purchasing/ storing equipment. 

The easy solution is to buy a shed and keep it at the house and when I move out move all the equipment. I am just curious what other people have done in a similar situation. Thank you!

I am looking for more info on how a private money deal would work for buy and hold real estate. I know there has been a lot posted in here regarding private money for flips but I couldn't find how it would work for buy and hold. 

My thoughts: You have a private money lender willing to lend you X amount to help fund 20% down. Coupled with personal money you saved you only need to borrow 10k and offer 10% interest in return. The next part is what I am unsure of...

Does it make sense to use private money if your plan is to pay them back their loan with interest every month from the cash flow of the property? Knowing full well that you would not be 'profiting' from the cash flow for the first year or so because you are paying your investor back each month until paid off. 

Has anyone ever done this? Any insight or tips on how to structure this deal would be appreciated! Or perhaps this is not the best route to fund 20% down. 

@Stewart May I am not sure the exact stipulation for a conventional owner occupied loan but the time frame for FHA owner occupied is 60 days from closing. This may give them enough time to come up with additional funds for renovation.

They could also consider moving in during renovations, almost like a live in flip situation. 

Hi all,

I am stuck between a rock and a hard place. I am looking for advice and general opinions on my current situation as maybe some of you have been there.  

MY GOAL: to acquire enough Multi-Family's to supplement my current income and manage the properties full time. That is my definition of Financial Independence. 

I currently work in finance and do well for someone my age however, I very much dislike my job. To the point where 'Sunday Scaries' are real and the thought of going to work is depressing. With that said, the job is easy and not very time/labor intensive (40 hours per week) and pay's very well.

I've eliminated my biggest expense (housing) with my current House Hack and have saved enough capital to purchase another property. The dilemma; is it worth sacrificing self actualization for the pursuit of financial independence through Multi-Family's even though that may require working 3-5 more years in a job that is mundane. Or..... quit now while I have a financial cushion and pursue a job within Real Estate but take a much lower pay cut. The road to FI would be longer but with more passion and desire to wake up on Monday's.

This post isn't mean to complain or bit** but more to seek advice from people who may have had a similar situation. Thanks again!