All Forum Posts by: William Sing

Worthy Construction - worthyconstruct.com

Hey James! 

Here are some thoughts:

- Why is the HOA $2? This seems really low.

- The DP seems really low. You could be using a VA/USDA Loan, but they usually have occupancy restrictions (you need to stay there for 1 year min). Not sure if this would be more after you move out.

Any more context would be helpful!

Hey Carson, I have done this with a couple clients but I'd look at what is currently on the market and go through different scenarios on if they need light, medium, or heavy work. Going through the examples is helpful for them to understand the ROI and also how much more work some might be over others.

Hey Trevor!

I would talk with a local agent (who is an investor) in those markets. One of the things to look at is the rate of appreciation. The more places are appreciating Year-over-Year the more competitive things might be. The agent can also let you know a lot more about how often they have been seeing over list price and give you a better gauge of the competitiveness of the market. 

Hope this helps!

I'd start looking at the construction costs for doing each. Long-term rentals are a lot easier to manage in the long run, while STR take a lot more to run and usually have more fees. They typically are a bit more profitable, but they come with their own headaches. I think I'd look at the following factors:

- How much work do you want to make this? Initially and long-term. 

- What is the construction costs and ROI on each investment?

- What are you wanting to do with your portfolio in the long run? How would each of those plans better suit what you are trying to do?

Hope this helps!

Hey Dana, 

Congrats on the first step of looking into it!

At the bottom is a list of questions I'd ask lenders. 

I asked friends/family for their lender suggestions along with going to Zillow lenders and seeing who specializes with working with "Investors". A lot of them don't deal with as many investors so make sure you understand if they are investors themselves and how many deals a year they do that are investments/househacking. 

When you get pre-approved, it will hit your credit as a heads up. You have about a month grace period to have lenders pull your credit and it to be considered 1 pull. I'd personally interview them before and not worry as much about rates. 

Depending on your location, if you can get the property to breakeven with your "portion" of rent then you are in a good spot. Here in Portland, OR it is more of an equity market and not a cashflow one. Even if you have losses for the first year and then go into cashflow positive you are in a good spot. A lot of people say they need more cashflow but they usually aren't putting down only 3.5%, they are closer to 20-25% at a minimum for an investment property if they are using a regular bank so the numbers change drastically when you have that much down. 

Note some of these questions might not apply:

If you are looking into building credit fast, I'd recommend looking into using Pre-paid credit cards. This article goes over it a bit more and you can research the subject more if you'd like -https://www.cardrates.com/advi...

I usually have my clients do this for a period of time to get their credit score up quickly. 

I agree with @Erik Checkur that they can be pretty risky. It also depends on the college town, but with online education becoming a big thing I'd start looking at more stats on the area. Also if you are catering to the undergraduates add a lot more for maintenance and use tough materials (LVP, etc) to handle the abuse. 

Not sure if this answers this question, but this inspection software my inspector uses is great and has a Repair Request Builder which is pretty awesome. 

https://www.spectora.com/

Military do have special rights when it comes to being able to remove themselves from leases. It sometimes depends on the state, but there might be some other things around that as well. 

A new lease will need to be made for the new tenants. They would need to go back through the process as a "new" tenant and I would make sure this is clearly outlined in your book of "policies"

I'd reach out to your local REIA or investor network to see if you can talk to a property manager about any other specifics in your state.

Is there dirt or something else on the other side of this? If so that might be a slight concern. My usual test is if the crack is wider than 1/2"-1" then it is time to bring in a professional to check. I'd be more worried if this was in a crawlspace or in a basement. 

Overall, I wouldn't worry about this too much. As always though, I'd talk to a professional. You might be able to text the photo over to a foundation contract to tell you if it is a big deal or not.