Stay at home dad starting out

[Ian Haas]

I’m a newly minted stay at home dad. I have always wanted to get into real estate investing, but have only recently started. I had a fairly well paying job prior to my daughter being born, so I have comparably lower debt and good credit (730). Also, I received an inheritance of about $300K to start with.

I have been searching for deals left and right and am working with a real estate agent in my area as well. I bought my first deal wholesale for $45k. It is a Victorian triplex in a very nice area about 20 minutes from where I live. It needs a lot of work. I ran numbers and the ARV should be between $180k and $200k with rents at approx. $2000 a month. Rehab is expensive, but I expected that and have $80k-$100k set aside for it. First question...how does this sound?

Second question....does anyone know a cash out lender who would lend to me without a job?

Third question.....how the hell do I find deals faster than 1 every 4 months?

[Peter M.]

1. If you are all in at 145k and getting 2000/month in rent, without knowing a lot of other specifics that is probably a good deal unless you are in a super high tax state or insurance on triplexes is really high there. No way to know for sure without knowing other monthly expenses but $24000/$145000 is a 16.5% return. So assuming you had 4k in expenses for a year it would be $20000/145000= 13.7%. Pretty good return.

2. For lenders look for smaller local banks who lend out of their own portfolio. Fannie/Freddie qualifying loans will be the best rates. The best LTV you will get is 80% so if it appraises at 180 you'll only be able to get back 144k max so you will most likely have to leave some money in this deal unless you can do the rehab for a lot less.

3. Faster deals-do your own marketing.