All Forum Posts by: Mike Dorneman

@Asa Hunt All investors have different needs, but personally I’d bring someone along who could help with the minor cosmetic updates. (Painting, cleaning, minor carperntry, etc...) Those things take time and eat up profit. So for me, that’d be a fiat trade off, a little manual labor. Others may want you to knock on doors and identify deals, hit the phones or collect rents... Key is finding someone you can trust, who truly understands the business and has a desire to help others for the sake of helping others. Best of luck!

@Emma Nunez Hi Emma- is day it depends on your goals, financial situation and your market. Not to add more to the pile, but have you considered rent to own / BRRR?? I purchase, renovate, rent and refi my investment back out to do it all over again. It creates steady cash flow, I’m building long term equity and I get to keep working deals with the same initial chunk of money. Best of all worlds in my opinion. That said, I’m am working on a flip myself right now 😁. Mainly because I got the property at an incredible price and will make a quick 20k with just about 2 weeks worth of minor cosmetic updates. So In thIs Instance, flipping makes sense.

@Cody Rosario you’ll need to do the math... how long can you sustain at the current rent rates stacked up against all liabilities. Will you lose money at the current rent rate?

@Megan Phillips I went thro hi this same challenge a few properties ago. I ended up searching and finding a random retailer on google shopping. I only needed 2 pieces but had to buy the box for about $180.00. The Size and texture did match perfectly though.

@Vincent C. Those details are typically spelled out clearly in your sales agreement. Without looking, I believe mine typically allows for 30 days reinbursment. Is the title company refusing to refund?

@Tulan Kantesaria Partnership designation, with my wife.

@Tulan Kantesaria I set my LLC up to hold the properties, then I take a “pass through” on the income. It reduces the amount the business revenue is taxed and falls into my personal income column. This is all very situational based on your annual capital gains and W2 income. If you decide to pass through, just make sure those additional net profits don’t move you into the next tax bracket. Find a very good Real Estate CPA. All CPA’S are NOT created equal... far from it.

@Daniel Brown you want the walk through. Yes, you’ll have to pay the $500, but you’ll likely get a much greater value for the property and larger HELOC. Think of it simply as the cost of doing business. Yes you spend $500. But maybe you get an extra 5-10k on the HELOC which allows you to get in on another deal. You’ll make that 500 back as soon as you find the next deal.

@Daniel Brown Yes, some banks will HELOC based on your tax assessment after the house has been “seasoned” lived in for 1+ year. While this would save you the $500 appraisal fee, it likely won’t benefit you in this case. You want a formal walkthrough / appraisal. This way you can show all the value “forced appreciation” you’ve created through the renovation. This is similar to the BRRRR strategy. Hey the appraiser in there, hand them some before pictures, and always print out a few comps you’d like them to use! They may very well throw those peppers in the trash, or they may just go with it. More often than not, my appraisers have used the comps I’ve provided and called it a day. Easier for them, and very good for me! 😁

@Peter Arroyo I’m sure you’ve already planned for this, but be very cautious on the tenants you select, especially if students. I could tell you some stories about houses in that area. I loves in a few during my undergrad years, it was nothing to have 250+ people in a half double 2 or 3 times per week for a little party, that’s just the norm in Stroudsburg. Parents sign the lease, renters insurance required, monthly checking, 1st, last and security. And make sure you create a video of the property to show the condition prior to renting! Best of luck.