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All Forum Posts by: Tim Puffer

Tim Puffer has started 12 posts and replied 288 times.

Post: Trying to Figure out Where to Start

Tim PufferPosted
  • Lansing, MI
  • Posts 301
  • Votes 149
Originally posted by @Dan H.:
Originally posted by @Peter F.:

How would you start investing if you and your wife had $100,000 to invest in SoCal? Note: she wants a yard for the dog and a decent neighborhood for primary residence. We're open to moving and/or purchasing out of state. 

 I would start by looking for historically high appreciation areas (areas that have appreciated well for durations as long as 50 years) that I would desire to live.  Then I would verify that nothing has changed to make that location unlikely to continue to appreciate.  

I would then look for a detached duplex to quad that has one unit appropriate for your family. Detached puts distance between you and the tenants which I recommend. I would use an owner occupied FHA loan to purchase the property with low money down keeping some cash for reserves. I would then house hack the property referring to myself as the property manager.

If the property has an opportunity for forced appreciation that would be bonus.  

Using an FHA loan you can purchase a nice (expensive) property with little down that has a great record of appreciation in an area that you want to live and in a unit you want to live. You want a good home for your family.

Meanwhile the other tenants will be helping pay your loan (ideally partially supplementing the cost on your unit).   Finally you will be learning about investing, property management including dealing with tenants, repairs, etc.  This experience will provide you the opportunity to determine if buy n hold is an investment option you want to continue with.  If you do determine that buy n hold is an investment option you want to continue with, the knowledge gained will allow you to be able to have the next purchase be even more profitable.  

Good luck

 Agree with this. Just don't bank on appreciation. Make sure your numbers work without needing appreciation. Let any appreciation be the cherry on top of a solid investment. 

Post: Trying to Figure out Where to Start

Tim PufferPosted
  • Lansing, MI
  • Posts 301
  • Votes 149

@Dan H. - I wasn't questioning the returns historically for California. It was directed at the current. Given where prices are at there it seems best to wait until the market comes down again. 

Can you show me the facts that you are referencing? I'm more than happy to reverse my thoughts if presented with logical, factual information.

Post: Trying to Figure out Where to Start

Tim PufferPosted
  • Lansing, MI
  • Posts 301
  • Votes 149

@Peter F. - I definitely wouldn't be looking for property in California. You can get much higher returns in other states. You do want a property with income producing potential. That could be a personal residence in Phoenix with a Casita that you can rent out. Or, maybe you buy something in the midwest that gives you a great return and you continue to rent where you are. Sounds counter-intuitive, but it can make sense.

@Cody Z. - Good for you getting involved in real estate! It's very rewarding.

@G. Brian Davis and @Natalie Schanne are right on. You should PM your first few and have to make sure the numbers work!! I am house hacking myself right now and would be more than happy to help in any way I can!

@Chris Clothier - Great podcast! Always good information coming from you. I have an opportunity to partner with family to invest - would it be ok to PM you and get your thoughts on doing that?

Post: Zero to $5M: 3 Mistakes To Avoid

Tim PufferPosted
  • Lansing, MI
  • Posts 301
  • Votes 149

Boom! @Nichole Stohler !! This is the reason to not give up. You are always going to be knocked down somehow in everything you do and you can't let it defeat you.

Thanks for sharing!!

@Anthony Richards - House hacking would be one of the best financial decisions you have made. Let any of us know if you have a specific question about it at all!

Post: First investment decision

Tim PufferPosted
  • Lansing, MI
  • Posts 301
  • Votes 149

@Kerry Triplett - First - thank you for your service. And the others who have posted - thank you as well.

If it were me I would find a 2-4 unit and house hack. That would allow you to put that $1,300 into your pocket. You will likely have to go with an FHA loan, but verify that you can't use a VA loan on a 2-4 unit. VA loan would allow you to do 0% down.

If you have any questions on house hacking definitely let me know - happy to help.

Post: Investor in Grand Rapids MI that needs Insurance recommendation

Tim PufferPosted
  • Lansing, MI
  • Posts 301
  • Votes 149

Hey guys - American Modern and Foremost are two of the main companies that specialize in rental property insurance. Foremost's headquarters is actually near Grand Rapids. That being said there are other companies that will insure rental properties. You should be able to get Replacement Cost and not just ACV on most of your properties if you want. Be certain that you know the difference between the two at least.

I'm always here for specific questions if anyone has one!

Post: Investor in Grand Rapids MI that needs Insurance recommendation

Tim PufferPosted
  • Lansing, MI
  • Posts 301
  • Votes 149

@Jorge J Gonzalez - most insurance companies will insure rental properties. Get a hold of Compass Insurance in GR. They do good work!