All Forum Posts by: Naz Hossain

@Mitchell Miracle I would increase the 10% expense and break it down like most here mentioned. I usually have 10% PM, 10% capex,10% maintenance. I like to set conservative numbers to know how much i would cash flow on a bad month. I used to set my calculations on the optimistic side but it has helped me a calm my nerves when I know the least I will cash flow

Agree with @Nicholas L. 25% is a lot of money that you probably wont see for a long long time. Recycling cash is key. You have to make the decision about how you want to live. Since this is, I am assuming, going to be your primary residence, are you going to be ok living very minimally and sharing space with people you just met? What is your tolerance level? One thing that is correct is that you are almost 100% certain that you will cash flow if you get a small multifamily. The same cannot be said about single family, unless, you buy right. 

I agree to a certain extent with Joseph. Getting a duplex is always a good move. But, renting one unit will not cash flow either unless your monthly payment is that low. If you rent each of your 4 bedrooms and live in the 5th, you'd be more likely to cash flow. I can kind of see it being a problem once you move out. I am not a 100%, still learning as it comes. I am doing the exact same thing. I am house hacking a house I bought in San Antonio. Not cash flowing since I just have the one roommate, but I am paying less than renting an apartment in a nice area for sure! It is a win in my books. Less I/you spend, more you can save to put into other deals. 

@Adam Jason good things for me to reassess before attempting to do this. Thank you for your input

This becomes the classic case of what comes first, chicken or the egg. Can have experience without actually doing it but can’t do it without any experience. I’ve spoken to other investors and collected a good sample size of responses in terms of which Order construction needs to happen and the time required. My lender has a timeline of 2 months for a rehab after which there is a fee so I can work backwards from that. For inspections, the lender would have to clear that for each part of the rehab. 

I do not have much experience with the insurance And permit side but I do not think I need a GC to do that? 

Also, note, I’m doing this to stretch my dollar but also because I like project managing. I want to be hands on 

Hi BP community! To preface this post, I have a background in project management. I was thinking of ways to stretch my dollar further using the BRRRR strategy. Can I, as an investor, act as PM on my rehabs, hire different trades and complete the work? Im sure someone has done this, and that someone probably has GC experience. I do not. I just know how to get bids from vendors, verify their work and go through the selection process.

Also, how would insurance and pulling permits work in that situation? Can I have an umbrella insurance or would trades have their own? 

TIA

@Seth Teel

It is an actual report and certification by an established engineering firm. I looked up the engineering firm and they are well established. 

I spoke to the owner of the foundation repair company and he said that his company was a brand new company which started in october of 2018. I am currently getting a second opinion from another foundation company but I am sure they will come back and try to upsell everything.

Forgot to mention - the home has a slab foundation if that makes a difference. The engineering report covers plumbing as well

Hi BP. I'm looking to buy this SFH in the San Antonio area. This house checks out on all aspects but I'm having trouble with one area.

The area the house in is notorious for foundation settlement. The foundation on the house has been worked on before. About 6 months ago. The foundation work has an engineering report and the foundation company has provided lifetime warranty on material and labor. The warranty comes in the form of a written letter from the owner. But I cannot find anything on this foundation repair company when I go to look them up. So I cannot verify the integrity of their work.

My question, is the engineering report a good enough peace of mind for me to go through with the purchase

Thank you in advance

Lets say the plan is to finance, what if the current owner has the tenants on a month to month lease? Will the appraiser then use the market rental for the lender to offset my DTI? How would I work that with the seller?