All Forum Posts by: Sean Llewellyn

@Ryan Deasy thanks for your advice.

What are ways to determine market value in an area that doesn't have inventory to compare prices to? Are there factors that boost rent value, such as square footage, appliances, parking, yard, etc.?

@Samuel Eddinger - I appreciate your input!

Buying really bad properties cheap with cash, or really good properties with an FHA or Tradition loan is something I have never heard before, and I really like the way you put that. That's something that will change my perspective when looking for future deals, thanks.

You mentioned if I were to sell, then I should give up investing. I am a little confused, because if I can recognize that I made a bad business decision/investment and the market is in my favor to get out to cut my losses or even get out the hole I dug, why must I give up? Why can't I learn from my mistakes, learn better strategies from members on this forum, and make a better investment later on?

Hi all,

I am currently house hacking my first rental property that I bought in late 2020, and I don't know what to do with it. I want to share some numbers and insight to get some recommendations/feedback on what my next move should be. 

Property information - 

Located in Litchfield County, CT. Built in 1800. Three-family home. 2350 sq. ft. 0.53 Acres. Unit #1 is 1BD/1BA 800 sqft. Unit #2 is Studio 650 sqft. Unit #3 is 1BD/1.5BA (with small office space) 1,000 sqft. 

Purchase Details - 

Previous owners are local investors who purchased the property as a foreclosure in 2015 for $150k. 

My purchase price in 2020 was $320k. I put down 20%, $64k. Closing costs were about $11k. Interest rate is 3.15%. Mortgage is $1,692 per month.

In 2021 I spent a lot on repairs and rehab for the unit I moved into. At the end of the year my net income was -16.7k.

For 2022, I have spent a lot on repairs and rehab for Unit #3 which became vacant in May. So far, my net income is -17k.

Due to the inspector missing a lot of big issues with the house and the age of the home itself, I am very worried that I will continue to dump money into the house rather than use potential profits to invest in more properties. Some days, I want to sell immediately, and other days I want to hold as long as possible (buy&hold investing is what I am most interested in). 

I will attach a screenshot of current and projected numbers for the property (if I were to move out). 

I appreciate everyone's input, please be as straight forward as possible. You will not hurt my feelings, this is business. Feel free to ask any questions that will help you have better solutions to offer. 

Thanks again!

Hi there,

I am looking for one on one help with my rental property. I currently have friends and family that give me their input, but I really need advice from people who have been through this and can steer me in the right direction. Even though I am looking for answers to a few of my current issues, I would really like to build a strong connection with someone I can continue to stay in touch with. 

Here's a quick summary of my current situation. I bought a three family house in November, 2020. I live in one unit, one unit is rented, and one unit is recently vacant (rehab will be finished soon). Due to the houses old age and possible neglect from previous owners, I have spent a lot on rehab and still have a laundry list of work to get done (I do not want to disclose any of the issues on the forum). 

My intentions with real estate investing are to buy & hold, long term. But lately, I have thought about selling the property and starting new. Taking what I have learned with the first purchase, not giving up after the first road block, and having more confidence in my investments. 

I am looking for someone to review my numbers with (I take my bookkeeping pretty serious) and be honest with me. I change my mind weekly about what to do with this property, which distracts me from future investments. 

If this sounds like something you could help me with, please reach out and connect with me.

Thank you so much,

Sean

Hey everyone!

I am in the process of purchasing my first investment property! It is a three family home, I plan on living in one of the units while the other two units already have tenets. I am currently under contract and just finished the septic and home inspection. After both inspections I don't really know how to feel.

Keep in mind, this house was built in 1800.

With the septic inspection, the inspector was only able to inspect the tank, but not the leaching fields. The 1,000 gallon tank seemed to be in good shape, estimated to be 50 years old and no signs of ever flooding. The last time it was pumped was June, 2016. Unfortunately, the leaching fields were said to be five feet to six feet deep in the ground and the inspector did not have the tools to measure that deep. He said the only way to check it was to have a crew come in and start digging up the yard. 

I left the house not really sure how to feel. Also, he only charged me half of what I was told the price of the inspection would cost, so that plays into me not feeling like I got a real inspection done. My realtor, who is a very successful real estate investor, says she uses/recommends this inspector for every house. I AM NOT questioning the inspector, I am questioning if it is too much of a gamble to not know the conditions of the entire septic system.

On to the home inspection, AGAIN keep in mind the house was built in 1800. 

The inspector was very thorough and did an excellent job going through each unit. My main concerns after everything was pointed out - 

I would need an air duct cleaning for each unit. The pipes tend to freeze. The floor is uneven in the first unit (I am scared of a foundation crack since we could not find a crawl space under that unit). The insulation in the attic needs to be replaced. Electric problem in one unit. Big window in first unit needs to be replaced. Possible crack in furnace (not determined yet). These are just a few of what I consider the "major" issues. There are other issues, but are easy fixes. 

Again, this is my first home so I have never been through this process before. It was very overwhelming, but I understand that every house has problems. At this point I am trying to determine if I should walk because it could be a money pit or if I stick it out because every house I run into will have problems that are going to be addressed at some point. 

The property was priced well, it is in an excellent location, and has A LOT of potential to be a great investment.

Looking forward to your advise and/or stories.

- Sean