All Forum Posts by: Adam Nesheim

Hello all!

My wife and I are looking to purchase our first SFH in Billings, MT. We know the market pretty well, and know of a house that is not listed on the MLS. The owners of the house are looking to size up due to their large family of 6. Some context is the family of 6 is living in a 3 bed 1 bath house. They are looking to sell and buy a larger house. My wife and I looked at the house, has great bones, just need some cosmetic work along with a full bath remodel. I have experience remodeling homes as that is my W2 job so I would be doing the remodel myself. The current owners of the property are selling significantly under price for homes in the area because they think that is what their house is worth in the condition it is in. My wife and I would be living in this house for about a year and then trying to sell or rent it out if the numbers make sense. My question is, would it be better to try and get a conventional mortgage for this house or try and get a hard money lender that has longer term limits such as a year so I can refinance after the remodel is completed? What are the pros and cons to a conventional loan this way?

Thanks!

Hello BP!

I work as a residential construction foreman in Billings, MT. I have an opportunity to buy a small house (500sf) on a large duplex lot (7000sf). My wife and I cannot afford the purchase price and rehab together so we are looking for hard money lenders or private money lenders. This would be our first house to do a fix and flip or BRRRR. We don't have much experience but I do have a network of subcontractors to help with the renovations. I can do 90% of it myself. I am wondering what to include when asking for a loan from a hard money lender or private lender. Currently I have: Introduction letter, location of the house, approximate price for the rehab, and a couple recently sold comps in the area which give me a relative ARV. Is there anything else I need to include when presenting this to lenders?

Thanks!

Hey all, first post!

I have a duplex in mind that I have seen and has current renters in that are currently paying $1300/mo. I ran two different analyses on the property. One was doing a house hack where my wife and I would live in one of the two units and the other of renting out both units. In the first analysis which included house hacking, the expenses far outweigh the cash flow and would result in me paying almost $600/mo for the mortgage and other expenses. To preface this, the property is listed at $299,900 in a very up and coming area close to schools and the interstate. I believe it is actually worth about $310,000. My second analyses which included renting both units for optimal price of $1400/mo. This created a CoC return of nearly 11%, profiting in about $700/mo. The issue that I am having is money. My wife and I just started saving our side hustle profits and do not have much saved, not enough for a down payment. So I have a few questions regarding this predicament.

First Analysis: https://www.biggerpockets.com/...

Second analysis: https://www.biggerpockets.com/...

1. Would it make sense to get an FHA loan and house hack for a year and then do a cash out refi and get another property and make this a double unit? (Currently we pay $1050/mo in rent, this would decrease our overall payments to roughly $600 while generating some cash flow and building equity.)

2. Would it be worth it to cash out our Roth IRAs with the exemption clause allowing no penalties for first time home purchase?

3. Could I get a private lender for just the down payment and get regular loan after proving enough or the down payment and rent out both units right away? Or do I have to use a private lender for the entire purchase price?

4. Do I pass this up and try getting into wholesaling to start generating more capital before attempting other deals?

This would be my first investment property so I am looking for any advice! Thanks in advance!