All Forum Posts by: Stephen Dunker

You might need to do some research on this, but calculate the heat exchange rate of the apartments based on the material construction (each material has a heat resistance value), room volume (sqft x height), efficiency of the furnace (typically listed with unit but can be calculated with the nat gas/elec usage over the output of the furnace which is definitely listed. This number could be used to determine the energy usage per apartment basically.

If thats too confusing I would just try taking the sqft of each Apartment and then divide the energy usage by that. Idk what the codes/standards are for this tho.

@Marc Rice Hey so I have explored refinancing and have a couple questions about that for you. Once I get this property fixed up and fully rented, should I refinance then? How does that help me? let's say my property was $250k and it reappraises for 300k after I'm done. I have $50k in equity in this hypothetical. Would I use this as a HELOC and use that money for a down payment/renovation on my next property or can I not use a HELOC from one property on another? It's hard for me to plan when I'll have 25% down payment saved up for my third property because I am still trying to wrap my head around the best way to get my second while maximizing my returns and fully utilizing my leverage.

Any advice would be appreciated!

@Joseph Cornwell Thanks for the advice, Joseph. I think I am having trouble wrapping my head around the different approaches that I can take in real estate to successfully acquire properties and expand my current operation. I'm pretty set on moving into my next place (if I can secure financing at a good rate) by Spring/Summer of 2022. I do have aspirations to start a couple different 'side-hustles.' I would describe myself as frugal-minded so I have pretty low living expenses although I could definitely do a better job sticking to my budget. 

How would you recommend I manage my real estate profits, should I open up a separate checking or bank account? I heard that's easier for keeping track of expenses and income. 

Would you recommend I get a real estate license so that I can act as my own agent if it can put 3% of the deal back into my pocket at close? I don't fully understand the fees/expenses associated with being a real estate agent part time and only acting as my agent. If you could elaborate on that I would appreciate it.

Do you have any advice on reducing my liability? At what point should I consider transferring ownership to an LLC?

@Ben Gammon Hey Ben, thanks for the advice. I will definitely look into local meetups. Networking is definitely invaluable to achieve success in the Real Estate world. 

Hello BP Community, 

My name is Stephen Dunker. I am a 25 year old design engineer in Cincinnati, Ohio working towards my PE. I closed on a property in June and am currently house hacking. I will be fixing up a two-bedroom apartment and an efficiency apartment on an adjacent parcel to my single family house and renting them out. I plan to be finished by May of 2022 with the remodel and then move into another property, while continuing to house hack and take the fix-then-rent approach. The single family house, two-bedroom apartment and efficiency unit should generate $3000/month in rental income, while the PITI would be $1500/month.

My plan is to get 10 properties in the next 4 years. 

Any and all advice on how to move from property 1 to property 10 would be appreciated! Anything from securing finances and taxes to tenant management and budgeting.

I appreciate that advice!