All Forum Posts by: Aaron Canciani

 Yes, we will have 2 school age children. 

To everyone else, thanks for the replies!

It sounds like Cambridge may just be unaffordable for me at the moment. Its crazy how expensive stuff is - any recommendations on areas nearby for someone making ~ 100k a year?

Hello everyone,

I was recently offered a job in Cambridge MA - my wife is adamant we live in a nice home in a good school district. The problem is meeting those criteria in an area like Cambridge (if you do not want a long commute) means you are looking at 500-700k houses at a minimum. Here is what I want to do. All numbers are pulled out of thin air - please let me know if I am being unrealistic! 

Find a dilapidated cat-pee smelling home with a gutted kitchen (just as an example) that is listed for around 200k. Home should be so bad that banks are not offering traditional financing.

Finance 300k from a hard money lender (or other private lender) to purchase the home and have 100k for repairs. Getting the money may cost about 60k (20%) upfront, which I have. 

Repair the home and do a cash-out refinance. I am eligible for a VA home loan with 0% down so I can pull out the full value. Hopefully it would appraise over 500k. I do not think I can afford a 500k mortgage so although it would be nice to cash-out the full amount and put it towards my next investment I think I might have to refinance just the 300k + lender fees + misc costs to have an affordable mortgage.

I am fairly new to all this but my readings on the forums have led me to believe this can work. Any thoughts?

@Brent Coombs

Thanks for the advice! That seems to be the consensus and I think I will move on.

@Chuck VanDyne

Thank you for the detailed response! It seems to be lukewarm at best. Maybe if I can get them to sell it for less than they owe I could make it work better but I am not sure if they are in a position to do a short sale - I have not learned much about that yet - I will have to do some reading. Thanks again.

@David McLean

When I say give it away I mean for the amount they owe in it, 110k

Hello,

I am currently in contact with a distressed seller in Ohio who wants out of their mortgage. It is a VA loan and having it is keeping them from buying a home at their new location in California. They tried to sell the house before they left but could not sell it without taking a loss, so they decided to rent it. There is an all-star tenant in there right now paying 1100 a month. The tenant is a 50 year old widowed nurse 3 months into a two year lease.

They changed their minds about renting the property after realizing they did not have enough VA entitlement left over to buy another house in CA. So basically they are trying to give the house away at this point.

Home Value: 122k

Remaining Loan Balance: 110k

Annual Taxes: 2,786

Annual Insurance: 750

I know normally people don't think of single family homes as good investments but this house already has a tenant only 3 months into a 2 year lease. Furthermore the rent rates look real solid in the area - I feel like I could do better than 1100 a month. Anyone have any thoughts? It looks like there could be $300 a month cashflow on this? Do people disagree?

Hello everyone,

I am currently researching for my first flip in Dayton, OH. Fortunately I have a steady job with a decent income and little debt, meaning I can qualify fairly easily for a conventional mortgage. I would like to do this for my first flip but see two potential problems. First, as far as I understand I can't buy something too run down or a conventional lender will not approve. So let's assume for my first flip I go with a mostly cosmetic flip.

The other issue is I need money for rehab. Are there any recommendations for how to go about getting the money for a loan just for rehab costs (around 20k)? The reason I think this is a little different then normal is that there is no home as collateral for the loan as it is just covering rehab costs. Should I just skip the conventional mortgage entirely if I need money for rehab?  

Hello everyone!

I am a new investor in the Dayton Ohio area. I am a military officer stationed at Wright Patterson AFB, Dayton Ohio. I am currently 9 months away from obtaining my PhD in Electrical Engineering from the Air Force Institute of Technology. I am seriously looking into my first real estate investment in Dayton. I have a very analytical mind and am looking forward to putting the rigorous research skills I have learned throughout my PhD work into real estate. I look forward to learning from other investors on these forums the skills I will need to get started. 

-Captain Aaron Canciani