All Forum Posts by: Andres Ayala

@Jordan Moorhead I haven't found a property to make the house hacking numbers work. The way I look at it if my rent now is $1,000 and I can get the BRRR to cash flow about 300 bucks, if I live in my BRRR I would be paying about the same like 600 bucks to live there... if I stay in my apartments it would be like 650 ish... I just was wondering if anyone else is going through something like this.

If house hacking a BRRRR is not feasible in an expensive market, should I just rent an apartment and rent the BRRRR?

I live in Austin, TX and currently working with a wholesaler to find deals under market value. Struggling to make numbers work for a house hack, but i can cash flow a small amount each month if I just rent out the entire brrrr. Any cons with living/renting in an apartment complex and keeping the brrrr rented? Has anyone else gone through something like this? i need to get started in real estate and since I cant find a house hack my other option is stay in my apt and rent the BRRRR.

Any questions send them my way! Advice as well. 

Thanks!

Well I did not mean lie to the bank. Of course I am not trying to do mortgage fraud. I was saying when I refinance, do they give better interest rates for owner occupied or does it not really make any difference? 

Technically i wont be living there when I am fixing the property as soon as i refinance it i will plan to move in how is that mortgage fraud?

@Andrew Postell

Correct. Yeah I am struggling to find a way to make things work but I am trying! And with a primary home the price is going to be $350,000 just about plus any other repairs/changes I want to make. So that seems tough. The total all in price for the wholesale should be about $300,000 and with an appraisal and refinance I’m hoping it will be at $350-$370,000. But that’s the part I am nervous about, because I am unsure of how it works and what my mortgage will be after.

@Andrew Postell Sorry, trying to house hack, having rented out rooms to get close to covering my mortgage. I’m assuming for a 350,000 house the mortgage will be 2,400 approx. I don’t think I can get away with renting two rooms for 1,200 each or make it work.

That’s why I am trying to get a cheaper deal with a wholesaler and fix the property then charge rent and hold the property because I know it will go up in value over time with the new developments.

@Odie Ayaga @Will Barnard Thank you for your feedback!

The issue that I have in Austin is that every house is above $320,000 and duplexes about $450,000 and they are not remodeled. I can't make the numbers work with almost any property if I have roommates or if I live on the roof. In this case, the wholesaler is a friend of mine and is looking for an area where they are going to bring developments that will bring 10,000 people or something like that, i am thinking renting will be much easier a year and i could rent out the whole house and live somewhere else. All the houses listed on the MLS are above $320K. If he is helping me find a house at $240,000, giving me his trusted contact for hard money (said he will probably give me 10% with 2pts; I live in an apartment and plan to have them overlap about a month or two, is it legal for me to say I won't live there, tell the bank it will be owner occupied and hopefully get it refinanced?). All the houses that I have seen in the area are not terrible. Mostly cosmetic updates and i am assuming maybe tearing one wall to open up the space. I am in no rush and will not invest in something that needs extensive foundation/roof/electrical work. I have a contractor that my friend who is a licensed architect uses all the time. I plan on using him for some work and things like laying tile/painting i have experience with and will do myself. So I am hoping that the rehab is less than that. If I end up spending a total of $300,000 ($250,000 purchase + $35,000 rehab + costs) approx, comps for rent 3 bed 2 bath are $1,850(not remodeled) -$2500(recent remodel), how can i calculate my mortgage after the rehab so i know how much to charge for rent per room? I am mainly struggling to figure out what happens when i get into the refinance out of the hard money loan. I don't know what other options I have for lending options other than cash.

@Kristin Feerst @Andrew Postell Thank you for yall's feedback! 

The issue that I have in Austin is that every house is above $320,000 and duplexes about $450,000 and they are not even close to being updated. I can't make the numbers work with almost any property if I have roomates or if I live on the roof. In this case, the wholesaler is a friend of mine and is looking for an area where they are going to bring developments that will bring 10,000 people or something like that, i am thinking renting will be much easier a year and i could rent out the whole house and live somewhere else. All the houses listed on the MLS are above $320K. If he is helping me find a house at $240,000, giving me his trusted contact for hard money (said he will probably give me 10% with 2pts) for the time I rehab it. All the houses that I have seen in the area are not terrible. Mostly cosmetic updates and i am assuming maybe tearing one wall to open up the space. I am in no rush and will not invest in something that needs extensive foundation/roof/electrical work. I have a contractor that my friend who is a licensed architect uses all the time. I plan on using him for some work and things like laying tile/painting i have experience with and will do myself. I am willing to adjust to whatever house I end up investing in, I have nothing holding me back and am willing to sacrifice comfort to make the numbers work. I am just struggling to understand the refinancing option after the rehab.

Hello all,

This would be my first flip/first time investing. I live in Austin, TX and wanted to house hack to try to have most of my mortgage covered while living in a house. The market is very competitive, rising and expensive. I realized in order to make house hacking a possibility this would be my best bet to make the numbers work.

Buying a property from a wholesaler, rehabbing the property, and rent out some of the rooms. Or same with a duplex, rent one side and live on the other.

I am looking for some advice from the community, if this is a good idea or am I getting myself into a tough situation?

I also was wondering, after I complete the rehab and hopefully refinance the home, I pay the hard money lender back for the initial loan and get a fixed mortgage for 30 years. Is there any way I could calculate the mortgage after the rehab, does having equity in the property bring down the mortgage? I would also like to plan for vacancies and if I decide after a while to live there myself full time or rent the property entirely and do it all over again.

Any advice would be greatly appreciated! I do have some estimates on the prices I would like to get!

Estimated house purchase price: $240,000-$260,000

Estimated rehab: $30,000-$40,000

Estimated ARV: $340,000-$370,000

Thanks again!

Hello all,

This would be my first flip/first time investing. I live in Austin, TX and wanted to house hack to try to have most of my mortgage covered while living in a house. The market is very competitive, rising and expensive. I realized in order to make house hacking a possibility this would be my best bet to make the numbers work.

Buying a property from a wholesaler, rehabbing the property, and rent out some of the rooms. Or same with a duplex, rent one side and live on the other.

I am looking for some advice from the community, if this is a good idea or am I getting myself into a tough situation?

I also was wondering, after I complete the rehab and hopefully refinance the home, I pay the hard money lender back for the initial loan and get a fixed mortgage for 30 years. Is there any way I could calculate the mortgage after the rehab, does having equity in the property bring down the mortgage? I would also like to plan for vacancies and if I decide after a while to live there myself full time or rent the property entirely and do it all over again.

Any advice would be greatly appreciated! I do have some estimates on the prices I would like to get!

Estimated house purchase price: $240,000-$260,000

Estimated rehab: $30,000-$40,000

Estimated ARV: $340,000-$370,000

Thanks again!