All Forum Posts by: Sean Walton

You have a few options. I guess ease depends on your situation and state of the house. 1. Friends and family (private money) 2. Seller financing or buying subject to the existing mortgage (If you are buying directly from the owner) 3. Hard money lender 4. 203k loan. I think you are required to hold the property for a certain amount of time after completion so may not be ideal for a quick flip. Also more oversight by the lender on completeness before issuing draws. 5. HELOC if another one of your properties has equity

I would be careful cutting your cashflow to 100. If the market shifts that could turn to -100. It depends on your market but for me I would try not to over-leverage if you feel like you are nearing the top

Looks great. Congratulations! $36,000 plus a great education

I just sent you an email that Airbnb sent me. Supposedly they are making registration way more easy. I'm not sure i legalized f I'm-law units would be exempt from the 90max for un hosted stays I do 30day minimums to be exempt from the STR law. It is probably less cash flow but way more passive. I think depending on your area and price and if you have a system in place to do turnover the same day vacancy can be very low

You could look at buying your properties through a self directed IRA if you don't already own them

I'm not a lawyer or CPA and this is not legal advice and this is something I have been looking into. I believe in some instances you can transfer the property into a trust then have your LLC control that trust which should not trigger the due on sale. This something you should have an experienced lawyer do for you. I found this podcast to be a good start on estate planning with some info on asset protection https://itunes.apple.com/us/podcast/real-wealth-show-real-estate-investing-turnkey-rental/id883335228?mt=2&i=1000383253230

A good way to broach the subject is ask what they are planning to do with the money. If they say "put it in the bank" say ouch and ask them if they're interested in a way to make more and not take such a big tax hit. (I'm not sure how taxes work in Canada so that may not apply) 230k/300k is about 77% I would try to be closer to 65% if I need to finance and 70% with seller financing but if they give you a 0% loan until it's paid off then you can do 76%. But every market is different if there is a lot of competition maybe you have to pay more After getting it under contract I wouldn't just go off the city value get a BPO done for as is value and ARV to make sure you are in the range.

I think it depends on what kind of investment. if you have a good paying job and you will be living in it for a while then eventually it may be a good cash flow property. Right now even with how crazy rents are I don't think many properties cash flow unless you are doing Airbnb in them and most HOAs and some cities are limiting that option. I like your thinking getting in the path of progress with BART but those plans have been know for some time now so a lot of it is baked into the price already. Alex Capozzolo may be right that some builders may give you a good deal if you put a deposit down early but you may lose it if the project goes on hold if things crash

Air bnb house hacking is great. A little bit more expenses replacing towels and sheets. Overall I've had great guests. Granted I wasn't there sharing a space with them but if you don't mind it should be fine. Start your price low and build up some solid reviews and go from there. You may find doing 3 or 4 day minimums may reduce turnover burn out.

$5000/745,000 =0.7% so not hitting the 1% or 2% rule. Your profits may get eaten up by repairs and cap x. If it is a very new building maybe those numbers will be less than typical. Try running it through the BP rental property calculator You could see if the owner will offer you seller financing or take their mortgage subject to as a way to potentially lower your holding costs.