All Forum Posts by: Neil Goradia

I know this may not be what you were after, but just as a backup - you can always give that judgement to a debt collection company and have them handle everything. You'll need to give them a cut of any reclaimed money, but it may be worth it to you. Good luck!

@Derek Robinson Interesting, I didn't know that. Thanks for the info!

A few ways to get out of the analysis paralysis phase is - 1) Do what you're doing and house hack your way into an investment by buying a short sale, or a home that needs work, or a duplex. Once repairs are completed and you've lived there for 2 years you can take your profit with you without being taxed on it since it was your primary residence. The other way - 2) Buy a rental property with a business partner that you trust. You won't make as much, but you split your risk and you can get your feet wet without as much anxiety. I wouldn't commit to a long term partnership because those are hard to uphold unless its someone you've known for a while, but something like a flip would be perfect.

I think you can combine your cash snowball plan with some selective/strategic refinances to further fund additional properties. Just pick one or two to refinance so you don't have to wait a really long time to save more money for your next purchase. Owning sooner gives you the tax benefits, depreciation, and appreciation depending on your market. If you'd rather not refinance then start doing flips with money from friends/family/investors at 8-10% interest. This way you can build up your cash reserves faster to buy more rentals.

Try to find the county GIS website, where each parcel is mapped out in an interactive layout. You can usually click on each parcel and it tells you who the owner of record is without having to look through title work. I agree with your attorney based on what the previous owners have told you.

We never required it but strongly suggested they get it due to past experience. The added bonus is sometimes those policies actually overlap your building coverage. We had one instance where their policy paid for part of the fire damage. You can require it in your lease and then choose whether you decide to enforce it or not based on your tenant or based on the property.

To add to what Roland said, I wouldn't expect a wholesaler to volunteer the contract with the seller. Usually a double close indicates they are making a big assignment fee, and don't want you to know how much their contract is for.

My partner and I had 30 units we managed ourselves, and that was about all we could handle. However, I know someone that manages 175 units between her and her partner, and is fine with it. The difference is the automation in place and software they use. If you can automate everything from screening, to showings, to maintenance requests and rent payments you will be much better off.

@Trevor Rutherford, I'd actually let her leave so she doesn't struggle with rent each month....especially because it's the summer right now and you'll be able to find another tenant easily (as opposed to the winter). Also, I agree with the rest that you should change your lease so that from now on there are penalties involved for breaking the lease.

Also, I've never seen a judge grant a judgement for all rent due remaining on the lease. They usually just award a few months since that is typically what it takes to get it back in rentable condition and rented out again. 

The whole "you didn't fix this" argument is classic and I've seen it many many times. But at least in Indiana you are not allowed to use that as an excuse to hold rent ransom. When a judge hears that, all they do is remind the tenant that this is a possession hearing, and ask if the tenant has paid or not. If they haven't, they get evicted. The proper way for the tenant to address that problem is to pay their rent directly to the court. The court will then hold the money until the fixes are completed. Few tenants/landlords know about this method.

Hey @Brian Loftus. Where will you live if you sell the house? Also, how long before you make your money back from the construction venture? (Just a few years or 10 years)? What's the typical appreciation in your area if you hold onto the house longer term? If its a short term project then just do the HELOC and use it as your personal line of credit for this and other deals. If it's longer than you'll need to consider the questions above in more detail....plus there is more of a chance maintenance costs will increase the longer you hold onto the home.

Hey @Drew Sing, welcome (soon) to Indy! Let me know what your plans are and I'll try to meet up if I can. I grew up in Indy and know the city very well so I can help with neighborhoods, etc. I'm also a broker, landlord, developer, and wholesaler.

Neil