All Forum Posts by: Adiel Arvizu

@Regina G.

I don't think I can get that property at the moment since I can't get pre-approved for a loan. If I did I wouldn't mind wholesaling it but it would be more money out of pocket and the like. I am going to pay the property a visit this Saturday but in the right hands it does have potential location-wise.

@Ro Maga

Thank you and like I said I'm hoping for an internship which can turn into a nice part time job. I also have credit cards in my name my parents are paying for since my credit was needed to make repairs in our current residence not to mention my sister and I cosigned for a car that she uses. So maybe that killed my chances of pre-approval for mortgage and I do have college loans to pay off but I heard that for FHA they don't really count it as much as long as I can pay off 1% of it when it is deferred.

And yeah, I hear the same thing about "little or no money down" and it is possible, but I might as well find a needle in a state sized haystack. As for the property, this is why I want the lower price point so I can free up some funds but I know there may be people competing for those same things.

And I want to aggressively increase my reserves. I work as a math tutor for my university and I am a substitute teacher although that isn't stable since I'm fighting against other people for assignments. Also, I am a part-time student so there is that as well. If I can find a job within a reasonable distance that is flexible then I don't mind abandoning the subbing job altogether. I don't even spend much on myself. All I did with my tax refund was pay off my retail credit card debt and my paypal credit card debt. And that was it not to mention help out parents.

So I have a strategy for a lot of this but real life works differently. In any case, I'll save what I can although I fear by the time I am able to save enough that deal will go away and by then I will need to wait even more time to find a decent deal.

The first post here: https://www.biggerpockets.com/forums/432/topics/42...

So whether or not I am able to buy my very first property I want to chronicle this so people can at least see the tedium and they can probably do better than me.

So my objective remains more of less the same and thanks to some replies I have a little more information and I have taken some steps as well as more questions so let's begin:

Requirement:

• ROI doesn't matter too much as long as it can sustain me a little bit and that is utilizing an FHA loan or its equivalent.
• It is in Jersey City heights because I still have aging parents to look out for.
• Like I mentioned in the previous thread I want FHA financing but I'm open to other options.
• As for multi-family I am willing to do multifamily or mixed if the price is right
• Improvements needed should be minimal but if it can be completely fixed via an FHA loan with a 203k without incurring any additional out of pocket costs then I am for it.
• Vacancy doesn't matter too much because I'm sure people will want to live in the heights.

Action taken so far: I still have been going to realtors and getting pre-approved for a mortgage in Wells Fargo which if you are socially awkward like I am is a big step. Desperation is the best motivator if used right, that is all I can say. In any case, I found a promising property which is situated in the heights for $195,000 and it is in disarray not to mention that the location while not the best in my opinion it is very close to the shopping district, very close to a park, very close to the laundromat, and it is bike friendly. 

My plan was simple:

1.  Get pre-approved and get a private hopefully low interest loan for the down-payment and closing costs.
2. Get the $195,000 property at a lower price point and go through all the red tape since it needs to be fixed and it is a very good price for a two family. And the FHA 203k loan will fix it all up and things will be peachy keen.
3. Get it renovated and rent the second unit for $1800/month via services such as free internet and the location not to mention it is a 2 bedroom.
4. After a year move back with my parents and rent the first unit for $1800-$2000 since it will have the yard.
5. Make a nice ROI and look for more investment properties while possibly enjoying life since I don't really buy much and the only primary debt I have is college loans. Heck, my primary source of transportation is my bicycle which has served me well in saving me a nice chunk of money and giving me a workout.

However sometimes even the best laid plans can crumble. So first there is the matter of my pre-approval which if you apply for a loan your debt to income ratio needs to be 45% although that will vary from bank to bank or realtor to realtor. I also learned of the self-sufficiency test. So for now I got denied unless I either:

• Make more money: I work as a substitute teacher and math tutor for my university so that isn't going to happen. I am trying for an NJ Transit internship so wish me luck.
• Get a co-signer: As much as I don't mind I do not want to involve my parents or friends on this. I am also scared of doing this with an investor because I am already putting a lot on my plate I don't want to make my co-signer liable for my failings if it should happen. Because I don't mind taking responsibility for my own failings but I don't want anyone else to also take responsibility.
• Get the property at such a low price point that I will get a better debt to income ratio.

Also, the closing costs are insane and I am very sure that it isn't the end of it. Here are the costs the mortgage loan officer told me:

• Commitment fee: $995
• Appraisal: $690
• Credit: $14.04
• Title closing/escrow: $1,145
• Title lender's policy: $916.15
• Title/endorsement: $100
• Title courier: $100
• Tax Service: $80
• Record deed: $123
• Mortgage DOT: $333
• Total closing costs: $4496.49
• Total closing costs with Wells Fargo $500 rebate: 3996.49

And that isn't even counting the down payment via FHA loan. I know that isn't that much money for a couple of you but to me that is an insane amount of costs just to own a property.

I will be visiting the property this Saturday just to see how bad it is. I saw pictures and it is pretty bad so I expect a lot worse out of this. I can do minor repairs such as replacing doors, tiles, and painting. And have contractors fix the bigger underlying issues. I am also getting a quote on inspection just in case I want to pull the trigger. I looked in courthouses and banks and they seem to be really underrated places to look. So yeah these are the actions I took to get this far. I'm sure I took more actions but I just don't remember them.

What I want: I want to see if there are any more leads like the one I found and what else can I do to obtain financing. I want to start getting passive income and I want to start the harsh journey of property ownership. And if it looks hopeless for me then I don't mind giving the info about said property and see if anyone else thinks they can profit off of it.

Also, if you want a mortgage loan you need the following (forms needed probably vary but have them anyway):

• Bank statement from possible current or last month
• W2 forms and income tax forms from the last two years
• Two forms of identification
• Pay stubs spanning years or months

If I can do something then I don't mind chronicling it on this forum so people can learn from my failings or they can be inspired to actually go out there and get that deal. I have a feeling it will be the former but I will do what I can if there is a sliver of hope and what not. And I want to thank everyone who has helped me thus far I really appreciate it.

I also forgot to add succeed or fail, I am learning a lot more than I bargained for.

@Brian Garlington 

I understand. For now though I need to be pre-approved and then I can search for whatever I can pull the trigger on. Haven't given up yet though.

@Brian Garlington

I'll take your word for it. As Robert Kiyosaki would say: "Buy the ugliest house in the best neighborhood" But what if I do some of the repairs myself because I don't want to pay something like 200K+ for repairs if I need them?

@Joseph Gozlan

I actually found a possible 2 unit that a bank owns that can get around 10% ROI off the bat if I rent it for $1500. I think I just have to look at unconventional places. Also, like I said I'm open to foreclosed properties if they also either have occupants or if they have a low sustainable price point.

@John Miller Thank you very much. I already found one 4 fam but I would like more options as long as I can use the FHA loan to finance it. I'm even open to foreclosures that have occupants since it seems that those are the cheapest. I'm going to look into banks and the like for properties and hopefully they are investor minded to help me out.

@John Miller 

I don't really want two mortgages though. Just one FHA mortgage and the other part would be what I have to put out of pocket. And yeah I am setting the bar high, I wouldn't mind buying outside the heights but I want to be by my family in case the worst should happen. I mean in the entirety of Jersey City there are still little sparkles but in the heights it is harder to find. In any case, thank you for your encouragement and thank you for the options.

@Joseph Gozlan

1. Yes, I am planning on moving into one of the units myself. I also don't mind rehabbing a little.
2. I calculate it from the money out of pocket divided by the positive cashflow per year.
3. Well they said it would be hard to find a 3-4 family house which only has one vacancy. And I just need to show some documents to see if I'm pre-approved for an FHA loan. I did say I want positive cashflow and I'm open to 2 family houses but so far no fish are biting.

And yeah I understand this may be a little much even if I am leaving room for flexibility. I do want an ROI of 15-20% when I move out and rent the vacant unit but for now I want to settle for positive cashflow with 10% ROI and I'm open to it being a little less since that would be when I occupy the unit.

Objective: Use an FHA loan to buy a multi-family property somewhere around Jersey City Heights and finance the down-payment and closing costs with either a private loan or a gift which I intend on paying back.

Requirement: 

• 10% + ROI off the bat, will settle for a little less.
• It is in Jersey City heights mainly because I have aging parents to take care of.
• Utilizes FHA financing am open to other financing options if it proves to be better than FHA. I am buying from a realtor but if there are any owners who are willing to sell then I am open to owner fiancing.
• Preferably a 3,4 family or mixed will settle for 2-family
• Improvements needed should be minimal. I am willing to do floors, lighting, painting, and door replacement
• Place should only have one vacancy

Action taken so far: I have been going to realtors looking for properties and I was told that the FHA loan covers so much so my price range has gone down to at max $620,000. I did want to go for 3-4 family properties but there aren't a lot of them so I am settling on 2-family but the thing is that I don't think there is a good ROI in 2-family houses in the heights. I am also in the midst of getting my FHA loan approved that way there are no questions about it.

What I want: I want to know if there are any more ways to generate leads that don't mind utilizing this financing. I will try banks and courthouses and I am open to foreclosed properties although that sounds like a whole new kettle of fish there and I'm sure most of them are vacant which isn't something I desire. I also want to know if there are anymore financing options because in an ideal situation I would get owner financing and it wouldn't be as much of a problem. 

I just want my first official home purchase to be as painless as possible and I want it to jumpstart into me buying more properties. 

I think you should go for a specific property and go for it. I wouldn't recommend condos since we are selling so much here and so far they are still up. Also, you have to deal with hoa fees. Multi-family is where it's at when it comes to investing and I would recommend you look at craigslist and other ways to procure property through owner financing before you look at an agent.

If you are looking for an agent then search for real estate agents on BiggerPockets or just hope people can reply to your post with their recommendations.