I've got financing! Now what??

[Franky Davis]

Hello all,

I've posted before regarding my attempts at dipping my toes in the real estate investing pool. A quick background...I'm a 3rd year orthopedic surgery resident and have signed a contract with a hospital in South Georgia where my wife and I plan to set up our life after I complete my training. I have been obsessive about reading/listening to books/podcasts regarding the topic of real estate investing. My niche interests include SFH residential and small multifamily. However, I would love to branch into larger multifamily once my medical school contacts/residency contacts are all out and ready to invest together. Anyway, I have recently secured some zero money down financing from local banks in south Georgia that are willing to lend me the money based on my current debt/income ratio and my future contract. This has opened the door for two single family investments valued at $100k (6% rate with a 20-25 year am and a 60 month balloon). I also have access to a commercial lender who has agreed to a slightly larger number depending on the deal at 5.75% and a 25 year am. I am more than excited about the potential here. However, I am having some difficulty making the numbers work from a cash flow standpoint initially due to the terms of these loans. Would it be possible to essentially BRRRR with these initial loans and refinance into a traditional 30 year am on the single family homes that would bring my monthly payment down after purchase price and rehab? I am open to ideas. I am also very much open to making contacts with realtors in the South Georgia area who are willing to get after it. I am a big fan of small town life. However, sometimes things happen quite a bit slower than I would like. Thanks and I look forward to hearing back from everyone!

- Franky

[Cam Jimmy]

I would buy a multifamily right in the vicinity of the hospital you are going to work at. That way you can live in one unit, and you will be super close to work. You will be living for cheap or sometimes for free doing this strategy, since your tenants usually pay for most of the motgage and utilities. Also Housing around large hospitals are usually easy to find tenants for, since they would rather live close to their job. In my case we have a University and a large Hospital in the same area called the "UMED" area. I get great tenants in that rental.