All Forum Posts by: Ryan Fox

The basement is not supposed to be included in the square footage count.  The additional bathroom would have to be permitted, so I would check with the city building permits department to see if a permit was pulled.  You could ask the building permits department if a permit would need to be pulled for any of the work done in the basement, but I doubt it would be required.  

@Adam Sankowski- Just did a refi and got 4% on a conventional Fannie / Freddie with 75% LTV in KC area.

@Charlie J. Bendana- You should cross-check any comps an agent gives you by pulling comps from a title agency.  First American Title offers a service called MyFirstAm which gives you free comps.  Just remember to use them for your title insurance when you close on a property so you can keep the service.  

I don't work for, or receive any compensation from First American.  

@Alvin Mercer- Agree with Ms. Weuhle above. 

Just out of curiosity, what do you plan to do with the land?

@Corey Collins- I use a HELOC to fund BRRRR deals. It's a good deal because you will likely get a 10-year draw period, so if your rehab takes a little longer than expected, you won't have any consequences. Also, when you're refinancing after the rehab is done, the HELOC can be considered part of the downpayment for the loan. This is helpful if you're not able to cash out your entire investment through the BRRRR; the part paid by HELOC can count up to 25% of the appraisal amount, while the refinance loan can be up to 75-80% of appraisal.

I will ask my CPA this question, but was wondering what BP thought of this. I have a Roth IRA and I invest in stocks and bonds. Also, I trade stock options within the account. Will the income and capital gains from the stock options be subject to UBIT, UDFI, or any other tax, for that matter?

@Jomar Edwin Benoit- I've had no interruption in rents paid since the pandemic.  A quality property manager should be able to work out any communication difficulties.  

@Alexandra Hughes Pailet- The online reviews can be misleading.  For instance, I know of one PM company in the KC area that has a non-disparagement clause in its lease agreements with tenants and in its management agreements with owners.  The result is that there are only positive online reviews of this company.  How can you get reliable feedback??

Usually what you see in the online reviews is the bad reviews by tenants.  This is to be expected, as there will always be a tenant here and there who complains about being evicted, having to pay for damage they caused, ect.  I would be more concerned about poor reviews by owners.

I can send you referrals for PM companies if you are still looking - shoot me a PM.

@William Robison- Thank you for your insights.  

For C class properties, are you seeing tenants who could qualify for A / B class units downtrend into C class?  Is that how fear is translating into more interest in C class?

I would also recommend Kansas City.  It certainly has lower taxes and more population growth than Chicago.  Closing costs are also lower.  I bought a 4-plex in KC in 2018 for $275k, but it was in an A class area.