All Forum Posts by: Richard Heine

Hey @Matthew Powell, What a great goal and welcome. All I can say is get started and ride the wave. Since the election the RE market is fun again.  I see that the rental demand is growing and flips are paying off.  Good luck.

I don't know but the finance company or bank will want to know what is going on. You don't want to trigger a DOS. If it was a bank they probably filed some LLC amendment documents that you signed at closing. Great idea, good luck and let us know what happens/

Pay cash, rent, add value, season title six months, go 80/20 or 75/25 based on appraisal and hopefully get all your money back in the refi. If you purchased right none of Your money will be invested. It's truly an OPM world then.

Should be 5 deeds right? The question should be about the loan. You need a portfolio or multi property loan.  Not uncommon at all. Only problem downstream is breaking one out of the loan to sell. My last deal like this was for four properties. I didn't argue about the first two  but asked appropriate discounts on the others. Give a little get a little. There are probably not many buyers that would come along and cash him out. The only other way is to cherry pick over time. Start with the best one at a fair deal and work your way through the lot over a couple of years. Don't buy the worst one.

https://www.fanniemae.com/content/legal_form/4539....

It's an understanding between the buyer or new owner and the current tenant.

First off, yes, if you can't or don't want to house hack, a rented house is fine. You need the experience so it's a good way to start.  But numbers half to be real good on your first adventure. Mistakes will be made and good cash flow is your friend.

This is what I buy. If you know your area find out if it's owned by another investor that is ready to dump their properties. I have run into this. I find they are easier to come to terms quickly. Also, meet the tenants and inspect the lease. Tenants are the money. Some investors get an estoppel letter to level set the tenants understanding of the tenancy and promises made. Tenants are wondering when their rent is going up (don't do that right away) .  

There is always some information or facts about the property that are not hidden but just omitted. To protect yourself your job is to uncover them.  I had a strange feeling about one house I could not put my finger on it. For the first time I hired up a real home inspector. It did not break the deal but it eliminated most doubts about the physical structure.  Recommended for your first project.

Surely you are looking at a value add situation.  A small value add after purchase will help keep tenants and show good faith.  There are many angles to look at this from just don't fall into analysis paralysis

I needed someone for the smaller on-call and minor installs like home water heater or heat pump, sometimes Freon. I found mine at Home Depot. I just needed an HVAC guy. I walked into Home Depot, asked the guy working that area. He had been in the trade for 20-30 years and knows every contractor that comes in for parts at 7am. He's the guy to ask and he will talk. The best ones I have used for on-call stuff are semi retired, still need income but don't want a real job anymore. They keep their certs active and work till they drop. Nice people by that age, too, and very reliable.  Maybe not a plan if you have large multi's, for small stuff works great and prices are usually good.

I have a tri-plex that needs a couple more months. a single family in rehab right now, and large duplex. It's tough waiting out the clock but with several active projects and a pretty good pipeline time flies by. I am waiting on the six months because I am sure they will appraise well enough to get my total investment back in the bank after the loan closes. Plus, the FHA has great rates and on their 15 and 30 year fixed.

OK, I have to jump in here. Once you put in a claim and pay a deductible on a service call your are at the mercy of the warranty company, not the contractor.  I found this out the hard way when a pool pump / filter system died. They came out right away but did not return with parts for five days. By that time black algae took over.  Not their problem. Never again. I build my own favorite standby repair people team. A good way to keep them around is to pay them the same hour they complete the job and stay in touch.

This is a popular item that realtors drop on sellers to make their property more attractive, safe. Maybe a good fit for a family buying a house.  If the warranty comes with the purchase great. Otherwise, personally I avoid them. Bump up your cap ex and run roll the dice.

What Villy says. Get that money to come home as soon as possible then  turn it loose on the next project. Leverage enough to keep positive cash flow.