All Forum Posts by: Stephen Betteridge

I use it for my rental property extremely easy to use. I used it to list my properties, screen tenants, manage payments, send notifications, manage maintenance. Basically does it all and the customer service and response time on the in app or online chat is insanely fast. 
Huge fan. Would definitely recommend. 

@Chace Fraser

Hey Chace,

That is a really good idea. I am the only one on the title and mortgage right now, so that could definitely be an option for us to do another FHA. (Situation depending of course). I had never thought of that!

Hi!

I’m a fairly new investor. I bought a duplex and am living in half right now (classic house hack). My wife and I have been settling in I am starting to think about our next steps. I have been thinking about doing a live-in-flip, or some sort of single family value add that we could move into so that the duplex can just be a rental.

I used a FHA loan, so I still have some time before I could move, and we are not in a rush, but I just wanted to get some insight and ideas regarding options to springboard our first place into another deal and start building some net worth. They always say it gets easier after your first deal, but I'm feeling a bit stuck.

I am not really sure I understand completely how the cash-out refi process works and I know that we do not have 20% equity right now.

Any ideas, or explanation on how we could utilize our current property to move forward in the future would be a great help. Trying to gain some better understanding and plan our next move.

Thanks!

-Stephen

@Ashish Acharya

“A) For the personal side, do not do repairs because they are personal. Always do improvements because they increase your basis thus reduce taxable gain in the future or will eventually increase your expense when you move out.”

Do you mind explaining the increasing of basis to reduce taxable gain? (Above) I am not sure I really understand this and I feel like this would help me as I am currently owner occupying a duplex with plans to move out at some point in the next few years as well and with the need to do both improvements and repairs to the side we are living in and the rental side.

@Brant Richardson

I agree with this approach, the ability to manage and take care of the properties in NC with way better cash flow makes a lot of sense. I think it gives you more flexibility down the road and will give you more hands on experience with the NC properties

Brian makes a good point as well about the rent control. That seems like a huge factor in wanting to get out of that area.

I feel like the situation as you described it is at risk (or already has) become too emotional. If you are planning to / want to move back there then the decision is based more on emotion instead crunching the numbers on how to get to your final goal. I think if you lay out what your long term goal is, and attempt to look at it unemotionally, it will give you a better feeling of which direction is right for you now.

I am looking to start my investing journey with a house hack. I am getting married in May of this year and have been saving up money for a place. I am looking to use my FHA on a duplex and am currently starting the search process. I have been using the rental property calculator to gauge whether or not these places would be good investments. Is there another way I should be analyzing these deals? Should I be following the same principles even though only one side/door will be collecting rent while I live in the other? I know I will still end up paying money, so what is a good amount to target for a mortgage payment (looking in the Philadelphia and surrounding areas). I am excited about this as an option because I know paying into some equity on a home that I own is way better than just renting. Then someday I can move on and rent out the other half!

Just some questions I have been thinking about as I start this process and begin taking my first steps towards financial freedom. Any tips, advice, ideas would be welcomed - thanks!

@Joe Villeneuve This is a super helpful way of looking at it. Even if you are actually ‘improving’ your cash flow number in the future, it is being done on your dollar. Do you think that this is still a viable option if your goal is to reach a designated cash flow number in order to retire, travel more, etc? Or if you still work a 9-5 job and just want to build up some side cash flow?

@Andrew Cole At first glance the numbers look very good. $3500 / $145000 = 2.5% so it is going to work most of the time at that percentage. The other comments are correct about having to live there in order to put 5% down so that is definitely something to consider. On top of that, have you had a contractor estimate the actual repair cost?