All Forum Posts by: Ryan Allison

@Bradley Sriro thanks for all the pointers.  I agree, it's not much of a deal.  that's what the owner is starting out at, not where I'm at.  It probably won't come to fruition but I was curious on what steps I need to take if it worked out.  

Looking at a property in Florida that is a subject to deal.  5.75% interest, $54K outstanding but the owner is requesting $22K in cash & I would take over payment.  Owner purchased a little over a year ago for about $70K.  

I've never done a wholesale / subject to deal in FL.  What are the risks of this from the buyers' point of view?  Any issues w/ insurance / bankruptcy risks, etc?  

In my opinion the budget for vacancies depends on the unit & location....but i would say 7.5% (about $100 mo.) is a good starting point.  

@Robert Duncan do you know when the liens / back taxes will build up to a point where the owner could get foreclosed on?  That could give you some leverage and incentive for the owner to "like to sell" to "Must Sell" 

@Kevin Chandler Hartford can vary street to street but with your price range you should be able to land something there based on what you're looking for.  In that range you should be able to find a duplex & maybe even a triplex in the West End.  It typically has pretty good rental demand with UCONN Law School, St. Francis Hospital, UHART all nearby.  Cash flow is not great since properties are priced accordingly though.  

On paper other areas of the city have much higher cashflow but they come with their fair share of hassles.   

I don't include snow removal as a part of my lease so I may be speaking out of turn here but I do think this is worth exploring....  Like @Filipe Pereira said, obviously you'll have some more liability here but honestly if there was a slip & fall with an insured contractor doing the plowing you still may be partially liable as well...  

What's the harm in doing a test run with the tenant & keeping your dad as a backup?  Like @Michael Noto said I would just prepare for the worst & keep your dad on standby.  It may require more communication before & after the storms with the tenant opposed to your dad, but if it saves you & your family time and money I personally would consider it.  

If the tenant does well after 2-3 storms, then maybe a formal arrangement makes sense?  

@Jamila Thompson kudos for getting started this early.  

With the market as hot as it is right now, it's probably going to be difficult to get good cash flow with a FHA 3.5% loan anywhere along the Metro North. There's definitely good deals still out there, but I would be patient.

Regardless, if you found something you liked , do it!  The first property I have doesn't have great cash flow but it was the best investment I've ever made because I liked living it it, wasn't paying rent & made some good appreciation.  Also learned a lot throughout the process.  

Based on your criteria, Bridgeport will probably have the best cash flow numbers.  But I'm a little biased to Stamford & New Haven, although cash flow probably won't be as good.  Multis are expensive in NH and Stamford but you should be able to get some good roommates with house hacking as both areas are very popular with young profressionals, students, etc.  

Hi all, 

I'm curious to know when some of you folks decided to use (or not to use) a CPA to prepare their taxes for their portfolio.  I've typically always done them myself but I now have a couple properties in multiple states & I am beginning to think it may be wiser to get a  real estate sophisticated CPA onboard starting for FY 2020.  

I'm aware of a couple of good CPAs locally in Connecticut but some of them are not taking on any more clients at this point in time.  Any insight or recommendations would be appreciated, particularly with folks with properties in multiple states.  

Thanks!

@Jeff Piscioniere I live in CT as well and although there's plenty of money to be made here, I find the dollar can go MUCH further with as good if not better returns, lower taxes, and higher appreciation potential in other parts of the country.  For that reason I chose Florida to do my last investment but I still keep an eye out for deals locally as well, but the barrier to entry is much higher as $100K-$150K couldn't buy us a shoe box up here.  It's nice to see CT get some long overdue appreciation but time will tell if that will last...  

Keep me posted if you wind up going out of State.  

@Bao Chau Tran link up with an insurance agent or just run quotes online.  A lot of carriers don't write insurance in FL so it make take some sifting to find the best deal.  Some houses can be $1.5K / year and some can be double that, especially if there's flood insurance involved.  All i'm saying is definitely make sure you factor that into your analysis, it's important in FL.