All Forum Posts by: Addison Robertson

I have a pending offer on my first investment property, a 4 bed 2 bath duplex in Indianapolis that I will house hack. FHA loan using 3.5% down payment with purchase price being $200k. Currently have $20k in liquid cash. I have narrowed it down to 2 lenders who have offered me around 3% with monies credited toward closing costs. With this being my first property, I plan on refinancing in 3-7 years to use that built up equity to purchase more investment properties. Would it be in my best interest to take a slightly higher interest rate in order to get the most credit toward closing costs due to my low amount of liquid cash? Also take into consideration that I plan to refinance in the medium term.

@Russell Brazil love it. Reconsidering offer now.

@Benjamin Couch you should help her by following through with your plan that you have saved up for, creating cash flow, and showing her the benefits of assets. To help you decide for yourself. Compare your CoC ROI and potential appreciation of the property and compare that to the opportunity cost of her APR on her student loans.

Thank you all for the replies! Keep them coming!

Difference in PITI is about $80 from $239k to $255k.

something I have not touched on. There are new builds ALL around this property. The neighborhood is being flooded with investor money. Would this negatively effect the property in the long run with it being built in 1910?

I would be able to boost the monthly gross rent to about $2600 with 800 sqft of LVP installation and tiling the walls of 2 showers (currently drywall with peeling paint).

@Jamie Derasmo I have not countered their counter because it would stretch my cash reserves to a point where I wouldn't be able to fix any miscellaneous issues that may pop up with a property built in 1910

Projected gross rent is $2250 and projected expenses is $2280. That is in the properties current condition. PITI is $1430 and capex, vacancy, repairs, and PM make up the remaining $850 difference.

They originally were asking $290k, after 25 days they dropped to $275k on their own. After 30 days on the market I offered $239k and they came down to $255k "as-is". 

Something to consider. The property has all new mechanicals and roof, but was built in 1910 and the air conditioners along the back of the house are actually across the property line on a vacant lot. I'd most likely have to pay cash for that land so I would not need to move the AC units. I am looking to house hack so my cash will be VERY limited if I purchased the home with a 3.5% FHA loan.

I'm 25 years old and just made my first offer on a property! I am looking to house hack a MFR. I found a duplex, analyzed the deal, set my standards for what I'd pay for the property and they countered back. I did not accept their counteroffer and am now analyzing other deals searching for another! How often does a seller revisit someone's offer if they have had no other offers on their property? Just curious and excited!