All Forum Posts by: Aaron W.

@Abby Link Welcome to the community! This is a great place to ask questions and learn about exactly what you are looking to do. There are dozens and dozens of articles about deal analysis.  I'll just throw a couple out here to start:

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

Depending on where you live, there may be local resources to look at to find your house hack, such as the local real estate investing associations or local realtors. I've typically had the best luck with referrals, so I'd ask around for a good agent or local investors where to look.

What area are you looking to house hack?

Good luck!

@Jeff Weimer I don't think it hurts the deal either way to request the drop in price to at least the appraised value. If they agree, then great! If not, then you still have the $5,000 concession. You can always mention that the house does not appraise for the agreed upon price and if there was another buyer, then they'd be asking for the same thing. Hopefully, you didn't mention to them that you've sold your other home and need to buy this one. If they have this knowledge, then they may be less willing to concede since they will be in the superior negotiating position.  

Unfortunately, since you've sold your home and may only have this property as your go to, then it may be your only choice to pay the currently negotiated amount and move on. $5000 is not too bad compared to a $10,000 or $20,000 difference.

Good luck!

@Andris Linauts

Is there a reason why you are only looking in Richmond?  I am also in Northern Virginia but do not invest in Virginia. I can understand if you are looking for a good investment market that is close enough to drive to. There are plenty of markets outside of Virginia that have properties meeting the 1% rule. In fact, you can probably go further south into North Carolina or west into West Virginia to stay close.

@Erika Rogers

If anything, you can probably refinance into a lower rate to save money.  Not sure if this is a primary home or a second home for you. This will play a role on whether you rent or sell too.

If the rent is at $1300 that may not be enough to make it a cash flowing rental once you calculate mortgage, repairs/maintenance, capital expenditures, insurance, and taxes. The general rule of thumb is your rent should be 1% or more of your home's purchase price. 

Do you have a property in mind to purchase? If you do a refi and pull cash out, then you will need to start paying on that money. Although, interest rates are low right now so it is something to consider. Is there an option to do a HELOC (home equity line of credit) on the property? That way, you can pull the equity out when you need it.

What are rents in the area going for? There are dozens and dozens of articles about analyzing properties and you can do it for your property to see if you would even cash flow on the property. Things to think include the mortgage but also repairs/maintenance, capital expenditures, taxes, insurance, and utility costs to rent out the property.

I think it matters less what you decide on but that you decide and go forward. All three can be done with little or no money. Financing should never be a real issue if you can find a great deal. You will need to look at the property and depending on the situation a fix/flip, wholesale, or BRRRR may be the best approach. As you mentioned, I would focus on one method as a new investor and focus only on that method until it becomes second nature. It will be hard to pass up a potential fix/flip deal if you are focused on BRRRR or wholesale, and vice versa. But stay focused and don't spread yourself too thin as there is a lot to learn.

Good luck with your investing!  From a fellow Virginian in NOVA.

To find deals, one can go online to your favorite real estate website, such as Zillow or Trulia, and find a lot of "deals" that may not be deals to others. What is your criteria for a "deal", such as returns, cash flow, appreciation?  These should be decided upon before ever looking for "deals" as you will be running around chasing after "deals" that may not really be deals.

In order to determine whether to refinance or sell, there are a lot of factors that play into it. Will you be willing to share details on the property including what you currently owe, current interest rate, terms, etc.  What terms and rates are you finding with a refinance?

For renting, what is the market rent for a comparable property (year built, size, layout, bed/bath #, etc.)?

For selling, what are the sold comparables?

This will start the conversation on whether to refinance and rent, or sell.

Hi all! We're looking at a Freddie Mac Float to Fix Rate Loan. It says during the floating period, the interest rate is the 30-day average SOFR + 20 bps. Looking online, it shows the 30-day average SOFR at 0.085. If I am understanding correctly, adding 20 bps would make the floating loan 0.285. Is that correct?Anyone who recently completed a Freddie Mac floating interest rate loan, what rates are you seeing right now?TIA!

I am trying to get a better understanding of delayed financing and how to complete one correctly. From my understanding, you purchase the property in cash and ensure the repairs/rehab costs are included in the HUD-1 statement. After closing, you apply for financing on the home.

1. How does the HUD-1 form play into applying for financing?

2. Are the repairs/rehab costs in the HUD-1 itemized or just a line item?

3. Where does the appraisal come into play?

4. Do the rehab/repairs have to be completed before applying for delayed financing?

5. What else am I missing?

Thank your for all your insight!