All Forum Posts by: Michael Dumler

@Kelly Rambo brings up a great point about how the tenants may be taking advantage and are looking for a way out. However, @Kush Khandelwal if there is a legitimate mold issue, I would not drag your feet on this matter. While there are no specific Georgia laws regarding mold prevention and remediation, if the tenants are harmed by the presence of mold they very well could take legal action. I would still have a mold inspection conducted from the company of your choosing. Use a referral mold company for unbiased testing. Last thing you need as well is for your tenant's to be posting on social media about the potential issue. Hope this helps!

@Matthew Basa investors use this strategy all the time. However, it's advised that if you decide to go down this route to run your numbers religiously and confirm the deal you're pursuing meets your criteria. The one caveat I'll point out though, if the value of your first home decreases due to market conditions/changes, recognize that what you owe on the loan may be more then what the property is worth. Obviously, better to buy and hold then trying to "time" the market. Hope this helps! 

@Michael Connolly short answer, no, the agent would have to be licensed in other states in order to get mls access in those respective districts. If you're looking to invest out of state, it's best to work with an agent that is licensed in that specific market. Agents can get reciprocity in other states if they meet the comission's guidelines, but this is typically for rare cases/transactions only. Hope this helps! 

@Ricardo Compian Congratulations on kickstarting your real estate investment journey. I believe it is important to set expectations upfront so, in the long run you're not discouraged when putting offers in on properties. While I'm not familiar with the Weslaco, Texas market, realize that what you're looking for is pretty damn hard to find in today's market. The idea behind house hacking is to have income (rent) cover all expenses so that you're essentially living for "free." However, given the competiveness of today's market and the fact that most properties have been receiving cash offers well over asking, it's important to understand the trade-offs. I don't think there is anything wrong with having to cover expenses your first year of owning a property. In fact, most experienced investors will tell newer investors that the first property is vital just to get in the game. I like the strategy of buying a property that is rent ready, and agree that you can therefore lower your CapEx when analyzing deals, with that being said, I do think you'll run into a lot of competition in the buyer pool. Have you thought about trying to go direct to seller and get an off market deal?

@Andrew C. this is very bizarre, your parents should have received a satisfaction of mortgage letter about 30 days after paying the final required payment back in 2007. If they never received a satisfaction of mortgage letter and the lender does not have the necessary documents, you can try to obtain a lien release from the Federal Deposit Insurance Corporation (FDIC). Also, your parents loan most likely was sold off to a servicer, in which case the third party would be responsible for issuing documentation of satisfaction. If your parents did indeed receive a satisfaction of mortgage letter, it would have been filed with the County. Hope this helps!

@Eric Berkner investors need to understand the relationship between interest rates and cap rates. The downward trend in cap rates over the past couple of years is heavily linked to the fall in interest rates. The spread between interest rates and cap rates reflects the risk premium for real estate, and investors need to recognize this. With interest rates at all time lows, expect cap rates to follow. I'll find it amusing when interest rates start rising again, investors will complain, and once again fail to see the correlation. 

@Byron Grim more information is needed. Are you trying to house hack? I ask this because you can qualify for more favorable lending terms if you occupy one of the units. If the average 2-4 unit property is in a price range of $600k-1.4M, your're 50k cash out refi will not even cover a 10% downpayment. Do you have more cash reserves on hand or other investors that are willing to fund the deal?

@Michael Celli congratulations on kickstarting your pursuit for a house hack deal. Depending on your market, 2-4 unit properties can be difficult to get under contract. From personal experience and working with client's looking to house hack, the buyer pool is very competitive. Neverthelss, again, this depends on your market and buyer demand. Most investors would advocate for the house hack investment to break even, meaning income covers all expenses, thus allowing you to live "free". However, being a little more risk adverse, I would recommend buying a house hack deal even if all expenses aren't covered. As others have mentioned, wealth through real estate is built via equity growth and downpayment. As far as calculating your monthly mortgage including insurance, speak to your lender to obtain a disclosure on all fees and required monthly payments. I also like the idea of buying a property that is already rent ready or will require minimal work. As a newer investor I would not get wrapped into a big reahab project. Hope this helps! 

@James French depends who you ask, but I personally don't think real estate investment courses are necessary. To be fair, I've never taken a real etstate course, but I guess that's the point I'm trying to relay. There is already so much free knowledge and education out there that I would first dive into before paying for a course. I think Brandon Turner's weekly webinars are great to get started. I'm unsure as to what paid courses offer that isn't already out there for free. Hope this helps!  

@Weixin Tang well BiggerPockets is a great platform to start on and get connected with other out of state investors. I'd also recommend linking up with an real estate agent that personally invests in their market as well and routinely works with out of state investors. Finding a resourceful agent can piece together the puzzle of also finding reputable lenders, contractors, property managers, etc. A practical step you can take today is to set up interviews with multiple brokers in different markets and see what they have to offer and recommend. This will at least get the ball rolling for you. Hope this helps!