All Forum Posts by: Sarah Brown

I think it really comes down to your goals.  I also look for cashflow.  That being said, cash flow can come from value add opportunities.  That being said, my goal is freedom and appreciation does come into the equation as well.  

Generally speaking, the more doors you can afford, the better the opportunity.  I would lean more towards the tri-plex than the duplex.  

Look for a lender who understands the ins and outs of investment lending. I prefer to utilize a broker lender because they generally have access to more unique loans, however I do know some BANKS or credit unions have inhouse portfolio programs available that don't exactly follow fed guidelines, which may also be good options. Talk to a few lenders, but don't let them run your credit until you decide on one. If it's a fed program (such as conv. or FHA) ask about overlays. Some companies put additional requirements on loans on top of the minimum requirement from the feds.

Are you planning to resell?  I'm not sure what other benefit you obtain from doing this. 

Buying wholesale properties is not for the faint or weak of heart.  You sometimes go into the blind off of visual inspection alone because it's a good enough deal to absorb those types of costs.  Sometimes the wholesaler may have an inspection report on hand already. 

The headache of a getting a tenant out that refuses to leave is dependent on your state laws. I encourage you to become familiar with them 

You can use whatever business address you want. However, I am guessing they are your registered agent for your LLC, in which case they are authorized to accept mail and serving documents on your behalf. I am unfamiliar with the rules in your state, but having an agent outside of you provides a layer of anonymity or protection. Try reaching out to one of their attorneys and chatting with them.

On a side note: having read legalzoom documents and comparing them documents written by attorneys within the state, I can tell you there is a reason they are cheap.

I would not use zip code to determine neighborhood class in any state.  Most states have areas that are block by block.  I imagine this is especially true in Detroit given my understanding of the area.  I would find an agent in the area that is familiar with the area and investing. 

There are too many variables related to you and your lendability to give a solid answer on this.  With just the data given, I would say buy a duplex, rent out the other side, and if you have extra bedrooms in your unit, rent those too.  If you can swing hiring a PM without putting you in the red on cash flow even better.  At least until you get your feet wet and you aren't juggling work and school. 

At the end of the day a conversation with the lender will help you dictate your best plan for moving forward. 

HELOCs can be a great option! They give you access to cash that you don't have to pay for until you draw it. The downside of the HELOC is the interest rate is usually higher so you will want to pay it off faster. Be sure when you are mathing out your next purchase, you include the cost of the HELOC. Don't calculate just the payment. It will be all interest. Calculate enough you can apply soome toward the principle also.

I had this same conversation with my CPA.  Your CPA is correct.  I charge my BF rent to live in the house.  Since the house was already going to be a rental when we moved to the next, I decided to claim rent, depreciate it, and expenses.  

zillow, realtor.com, facebook marketplace, put notice out to your friends and family you are looking for a roommate.   Referrals are generally better than complete strangers.  If you want short term, you can look at furnished finders.