All Forum Posts by: Alexander Zurn

@Thomas Barksdale assessed at 173k

@Brett Read thanks for the response. Would love some help figuring out of this is a deal. What numbers can I provide, private message me and I'll get you them? I've been on the market for 6 months now and this is the only opportunity I've come across at a this price. 

Don't forget, I am a first time homebuyer trying to get my feet moving in the investing world. I'm looking for good cash flow for a first time deal, which is why I feel good about this. I don't necessarily need a ton of cash flow right now. Also, I didn't know that about the grad grant! Too bad really, but i can put 3.5 down if need be just thinking of all options.

Hello, I have found an opportunity to purchase a multi family (2unit) property in Bristol, Rhode Island for under 170. Conservative rents 900 potential for 1200, numbers based on 900. This would be owner occupied for a year then move out. Does not need much in terms of work right now, just small do it yourself projects.

I just want to see if the numbers work. I have posted opportunities that I was wrong on so just trying to get better and always accept the criticism! Let me know your thoughts! 

Here's what I have

Purchase price: $165,000

• Down payment: $5,775 3.5%
• DownPayment Assistance/Grad Grant: $ 5,775
• Real down payment: $0
• Monthly income: $1800 (after I move out)
• Yearly income: $21,600
• Operating expenses using the "50% rule": ($10,800)
• this would include taxes, insurance, PMI. Taxes this year were $2,549
• Yearly mortgage pmts (main mortgage): ($9,012.12) $751.01 per month
• (159,225 loan for 30 years at 3.9%)
• Yearly free cash flow: 1,787.88

Washington First Time Homebuyer Program 

@Blake King Patience is a virtue and you certainly do not want to rush anything. BP has proven to always provide answers and help when I need it so stick the forums for sure!

The 3.5% down (owner occupied) is tough to pass up, especially just starting out. Something else you should consider is the state of Washington First Time Homebuyer Programs. It appears they offer MCC's (Mortgage Credit Certificate's), which essentially allows you to keep more of your paycheck from taxes so you can make the mortgage payment each month. They also offer DAP loans (Downpayment Assistance Programs) which, depending on the state, can range from forgivable loans (over a 5 year period) to a 2nd mortgage that is a small reasonable amount each month on top of your primary mortgage. Using one of these programs you could get into a house for as little as 1-2K down (depending on closing costs), which is less money out of pocket to keep saving as you progress in your real estate career.

They generally are great programs and are meant to help the state's homebuyers. However, they are only for FIRST time homebuyers so you should consider this moving forward.

Take a look at the WA website I found. It shows the programs specific to the county and state. Good luck!

@Julie Inderkum I am in a similar situation myself. Essentially comfortable living at home and saving a ton for investing in real estate. I have found rental analysis to be difficult for many reasons (i.e. inexperience, my market, and money down) and BP has always been here to help, it's great!

Just be very sure to do a thorough analysis and even when you think it is the right one, ask BP, or someone else you may know that has experience. I went under contract a few times only to back out because the deal wasn't what I thought it was. It was tough to admit I was wrong but at the end of the day you chalk it up as a lesson learned and grow from it. 

In purchasing a multi-family and living in one said to rent the other, as many have mentioned, can be great because you get the benefits of 3.5% down being an owner occupant for a year AND the other unit paying your mortgage. Then, you move out and fill your side to begin the cash flow process. Once you move out, you find another and so you're on your way.

I write it like it's so easy... it's definitely a challenge but that's the beauty of finally finding the best opportunity.

For now, I agree with @Jon Q. , develop of plan of action where you determine actionable tasks that you can do to get to where you want to go. Good luck!

@Elizabeth Newcombe is it because my purchase price is too high? The unit itself is move in ready, everything "appears" to be updated and in working order. Home inspection is this Monday though so they can tell me the repairs needed, if too much I can back out.

But you're saying in general, not enough cash flow? What number should I be looking for in my first purchase?

I have 2.5k in IRA that I add to every week, family if necessary. The expenses also include vacancy rates, forgot to include. I could use net monthly cash flow to put towards cap x fund for the unit. It's a condo, however, so HOA dues will cover majority amount of potential big problems, no?

Rhode Island Housing offers multiple down payment assistant or closing cost assistance programs. The grad grant they offer is for graduates in the last 36 months I believe.

If the property is in RI, look into the different programs. You still may be able to go through with it with $0 or very little down.

Hello - I have a bit of a spin on the age old question: To use all of your savings on your first property or not.

I have 10k I have saved in 6 months to put towards a property.

I have planned to use 5k of my own funds and a private money lender for the remaining 14k at 5% over 10 years.

My question is this: Should I use all 10k of my own funds and only borrow 9k (at 5%) so I don't have to pay as much interest to the private money lender as I would on the 14k?

My thinking has always been that if I have 10k to put 5k into one unit and then continue to save my net monthly cash flow from this unit (see below) + job savings on top of the other 5k I have left to buy a 2nd property by the beginning of summer '17.

---

Property:

Listed at $105,000, PP: $95,000 (plus 4k seller credit), Rent history: $1,100 past 3 years. 20% down (19k) puts the loan amount at $76,000.

Monthly Income (rent): $1,100

Monthly expenses (including taxes, insurance, HOA, P&I): $810.15

Positive Cash Flow: $289.85

Monthly Private Money Lender expense: $148

Net Monthly Cash Flow: $141.85 (to go towards next unit)

Key words: rhode island, providence, savings, down payment, private money