First-time Investors. Strategy, Hard Money, Pitfalls, Advice?

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You have outlined a very smart strategy, which is VERY important for any investor to do when they start. Come up with a plan, then work it through to any possible outcome, and work each outcome. Smart.Here are some things that jumped out at me when reading your post.....First, hard money lenders will not lend on any property you will occupy. They require the opposite. You will need to certify that you will NOT occupy the property. So, IF you intended to occupy the home, you would need to refinance through traditional means first, then move in. Second, make sure you account for the holding costs in your rehab budget. Many investors forget to do this. With such high interest rates offered by hard money lenders, the monthly, interest only loan payment will add up, depending on how many months you hold the property. So make sure to include this in your budgeting, AND your comparisons between an on-market property you can buy with traditional lending VS an off-market property you can buy with hard money lending. You may find that they are closer than you think. MAYBE....so it's good to compare.Lastly, make sure that your end game is a realistic outcome. Every investor goes in with the BRRRR mentality, but work through the numbers to determine IF your loan will be able to be refinanced and all money invested can be recaptured. Many times, the down payment AND rehab expenses take the total investment higher than the traditional 80% LTV mark that lenders will need for a refinance. IF you can find a deal that has an acquisition +rehab+Holding costs that equate to less than 80% of the ARV, then you TRULY have a good deal on your hands. And those will be rare finds.I hope that helps further your discussion, and the process for starting your investment journey. Best of luck to you!

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Hey BP'ersMake sure you get builders risk policies if you are using hard money or private money. This is really just about making sure that if the worst comes and you lose the property or someone goes and steals your materials... YOU ARE COVERED! Please make sure you get one, feel free to reach out. They are easy within the day you can get a policy.

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wow that's a lot of questions.. I would grab some books on the subject it sounds like you want real in-depth answersthese questions have been asked and answered for decades.. the other thing I like to mention virtually every how to flip or other type of guru gives you Cds written material when you go to the 50k camps.. if you look on E bay you can find those packages for 20 to 50 bucks.. buy as many different guru's information and go through it.. it will cover all your questions.

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I was hoping to stay away from the University. Having been a college student myself, I don't trust them. I'd rather not deal with the maintenance and turnover headaches. Owning a property next to a hospital is intriguing. One of them is a teaching hospital. I actually wouldn't mind renting to med students.

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At didn't think about that.

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You may have difficulty finding a contractor for rehab. Many are still raking in that sweet Hurricane Michael rehab money from the Panhandle, and simply aren't interested in moving their crews east for less pay /greater oversight in crime-riddled Tallahassee.

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@Jonathan Blocker hey man I have an opportunity for you. It’s ideal for house hacking. It does need a well and is in the country but is close to lake Talquin, boat ramps. Hit me up.

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@Jonathan BlockerYes, I currently have a close family friend who does and he says it's gone instantly. Anything near east capital circle or northern tally should do very well.

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Having grown up there and went to FSU less than a year ago I would advise staying away from FSU, partying and drugs is very common in the area, crime can also be very common in particular areas which appear like they would be great investments, please be careful for this. I would avoid most anything on tharp street and south of cascades park, and definitely drive around neighboring roads to see what area you are actually in. This may sound bad, I will say Tallahassee is an excellent market but some areas can deceive you. East of the city, Thomasville rd to Tennessee st would be my targeted area if you're looking for up and coming. Renting a multiplex around the hospital would be phenomenal! Though finding a house like that could be difficult since it's more single family homes. PM me if you have questions.

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@Jonathan Blocker I can only guess... Perhaps we just didn't build too many of them because of the small town mindset 20-30 years ago. As the result, we now have low density inventory yet high density demand.