All Forum Posts by: Rick Albert

275 is small. STR or MTR is likely your best bet.

In terms of renting it together, try to find comparable rentals and see what they go for. My hunch is you will be more profitable renting separable than together.

I've done two house hacks and invest out of state. You're fine.

It's all about the debt to income ratio. As long as you meet it, you can have generally up to 10 loans (each lender is different) unless you go the DSCR route.

Talk to lenders about this. They will be your best resource.

Hey Andrew,

I've worked with Sellers who are out of state (I'm about to launch a listing in a similar situation). Happy to DM you.

Best,

Rick

My understanding is wholesaling by definition is locking the property under contract and selling to someone else. You have a right to be concerned.

If he is the actual buyer, then have an attorney draft up the terms of the agreement and all parties sign. He shouldn't have a problem with it. 

This is why some wholesalers have a bad rep.

Keep in mind Walmart doesn't always own the land. It is usually part of a larger shopping center and they are just renting.

I would go in public records and see who the owner is and reach out to them. That has a higher probability of success.

You also have to factor in what your property is zoned for. If it is single family, then it may not have much value to them. If it is zoned for commercial, then you might have something.

Good luck!

You can house hack anywhere so I would just focus on your personal goals and lifestyle.

Huntsville is a great market. Good jobs and has shown signs of appreciation. 

If you really want to leave, here are a few considerations:

1. Landlord friendly markets.

2. Population over 100K (better tenant pool).

3. Within your price point.

4. Multiple industries (healthcare, education, manufacturing, etc.)

With real estate it is generally safe as long as you keep the property for a while. 

If you are thinking of scale, I would recommend multifamily, but again, that will depend on your personal goals.

Why sell to an investor if an owner occupied would pay more? Also is your $300-$500 a month include putting money aside for vacancy, repairs, cap x, property management, etc? If not, then it is actually negative cash flow.

If it was priced well, it would have already sold. What is the average days on market for the area? 

Have there been open houses? What has the feedback been on showings? A house doesn't sell because of either the agent or the price. 

Here's the deal: If the numbers work putting 3.5% down, why wouldn't an investor putting 25% down not buy it at a higher price? Basically what I'm saying is it will be very hard in today's market to cash flow immediately unless you add substantial value. It is doable, but rare.

In real estate, you make money four different ways:

1. Cash Flow

2. Appreciation

3. Loan Buy Down

4. Tax Benefits

Even if the property doesn't appreciate and it doesn't cash flow, you still benefit with options 3 and 4. With renting, it is zero benefits.

It also depends on your market. I would be more forgiving in cash flow in Los Angeles than I would be in Birmingham. It just depends. It also depends on how much cash you have to make improvements (if any). 

I've also looked at house hacks as vehicles to buy other properties through HELOCs. So maybe my current house hack wouldn't cash flow, but I was able to leverage the property to buy another rental that does. To me that's still a win. Same principle applies to selling. You sell the house hack to scale up.

I would focus on appreciating areas. The easiest way to do that is look for desirable areas and buy just outside of it. That way as the desirable area gets priced out, they have to go to you. I've done that many times and it has worked out well.

The challenge is that it is too expensive to cover unless you raise your fees. 

It can make a difference but you really have to look at the comps. You also have to understand your target demographic. Some Sellers are tight on money.

What is a better value is showing them how to work with the furniture you have BEFORE addressing staging. Also listening to the client's needs and wants will also play a factor.

It only makes sense to sell if you know what you are going to do with the money. Yes, it implies buying something else, but what did you have in mind? For example, I sold my condo and did a 1031 exchange into MFU. Best decision I ever made. 

Some reasons might include:

1. Going into a new asset class. Single family to multifamily.

2. Lowering risks (for example leaving a rent controlled market).

3. Increased cash flow. For example if you have a property with a lot of deferred maintenance it could actually be better to sell and buy something in better shape/better value.

4. Scale the equity. If you have a $500,000 asset but have $300,000 in equity, you can buy a $1,000,000 asset.