All Forum Posts by: Todd Nordstrom

I've heard of an agent doing that with her listings here on Oahu for properties that don't qualify for lending. She risks a lot more than $5000 in some cases. Gets her contractors out, fixes issues, lists, then both she and seller make out...buyer too. Would like to know more details about specific deals and how it is structured.

There are SO MANY things to consider when planning for, designing, and constructing a new house, especially if it is for an investment. This is why, especially if it is your first, you should hire an architect. Plan layout is a just part of it but a good architect will look at the big picture...zoning, setbacks, natural light, wind direction, building context, cost, etc...and pull it together into a wholistic vision in a step by step process. As far as plans or layout, it should be reasonable for what to expect in your particular market

@Alfred Harding

Nice! was that price for a 2/2 or a 3/3?  You are right, way too expensive now.  Is it taxed as residential or resort, as that can be huge too.  

Alfred Harding Congrats on the Hawaii vacation rental. I've worked with a large developer at Koolina and know they have grand plans. Do you mind sharing what condo at Koolina...Beach Villas? Occupancy and overall expenses? Price point you bought into? Mahalo!

Garrett Beecher I believe Portland is a vey tight market with historically low inventory now, but for a good overview of that market and specific techniques that are working there, check out @tucker merrihew 's podcasts...I think he has a new one geared specifically for Portland.

Hello @ Eric Sanford. I grew up in LaCrosse, grandpa lived in Mauston, used to go to the circus in Baraboo, and Noah's Arc at the Dells...great area to grow up in! I'm interested as well in investing in LaCrosse and have family and lots of old friends there. Used to be Trane company and Heileman's brewery, now it is health care...I think Mayo clinic for major employers. The uptick in crime is concerning as are the high property taxes. Viterbo and UWL make renting to college students a good niche...unless you rent to a crew like us back in the 80's! Good luck and enjoy Biggerpockets!

thanks for the clear response.  I need to consult with tax advisor on how I will hold title.  Wisconsin (property location) is a community property state.

I barely make the 45% ratio using our total current rent so I will need to talk to lender to see if positive projected cash flow would boost that number.  I talked to one other lender that said they would not consider that...I assume you need landlord seasoning for that...probably depends on the lender.

The deal;

5bed/3bath

$75,000 purchase price  (25% down) + $20,000 rehab = $95,000

$1600 rent with vacancy @ 8%:

Revenue = $1467

Expenses= $809 (59% gross income)

NOI = $658

Mortgage=$375

Mo. Cash Flow = $283

ROI = 11%

Thanks for the response Doug McLeod . Do you know how they would typically look at your rent in this case? Would they consider my whole rent in the ratios or can they split it?

My wife and I currently rent here in Hawaii and I am looking to buy and hold out of state where I am from.

Our current situation is I earn w-2 decent salary, same line of work for 16 years, same place for 10 years.  My wife owns her own business and we used my credit to fund the start up.

She is currently paying off the debt at a good pace but will still take a year or so.  She also does not have much income from last 2 tax returns, but her business is starting to grow.

My question is, if she transfers the remaining debt out of my name into her business (which is where it should be), can the lender look at just my income and debt?  what about shared debt like our current rent?  Can that be split?

I found a deal that is now owned by a local bank which is also a portfolio lender.

Any comment would be appreciated!!

By the way, these are not to scale, but you get the point.