All Forum Posts by: Andrew Garcia

Hi @Account Closed, in your scenario, if you have a significant down payment saved up (20%+), you could do a DSCR loan.

That qualifies you based on the income generated by the property. Not your personal income.

If you do not have that, a partnership would be the best route. You could currently do a partnership with the terms you proposed with a DSCR loan. You do not have to wait until your DTI improves.

The biggest issue that I see is that you are not bringing much value to the capital partner. You are taking on the mortgage but they are likely not going to buy something with the intention of defaulting.

Typically these partners find the deal, perform some sort of value-add, and manage the deal. Are you doing any of these or some sort of valuable service?

If not, it will be tough to find a partnership.

Hope this helps! Let me know if I can be of any assistance.

Hi @Jiminia Rhymes, your best route is to go FHA and put 3.5% down. Not sure what closing costs are like in your market, but you could buy a $300k home with that.

Since you have really cheap homes in your market, you should look into 2-4 unit properties. Rent out one side and live in the other side for at least a year. That way, you can build up capital for your future properties while building equity in your current home.

That would be my advice.

Hope this helps!

Hi @Carlos Whitfield, the issue with buying from municipalities is that they typically auction it off. They require you to pay within 24 hours in general.

That makes it really hard to get financing for the upfront purchase. If you can get private money that trusts you enough to do so, this can be viable.

The rest of the strategy is sound, though. You just need to figure out the upfront piece.

Hope this helps! Let me know if I can be of any assistance.

Hi @Jason Porto, there are a lot of great people in this forum!

If you want to actively find people, go to the "Network" tab at the top of the page. Click on "Members".

Type in Richmond, VA and connect with investors.

Hope this helps! Let me know if I can be of any assistance.

Hi @Artur A., it really depends on where you want your business to go.

If you want to build a multi-million dollar business, it does not make sense to spend hundreds of hours to make $40k. If you are trying to build a small antique store in your town, BRRRRs could be a good avenue.

The amount of time it takes depends on a variety of factors. If you are doing a gut renovation as a newbie and putting in sweat equity, you are going to spend a lot more time than a light rehab for an experienced investor with a team.

Hope this helps! Let me know if I can be of any assistance.

Hi @CJ Mosley, go to the "Network" tab at the top of the page. Click on "Members"

Type in Tucson, AZ and connect with Flippers/Rehabbers.

Hope this helps! Let me know if I can be of any assistance.

Hi @Gavs Guigui, there are a few things I see.

1. The maintenance might be a little light depending on the age of the home.

2. $3,300 monthly rent seems high for a $300k property. Check with a local realtor to ensure that is accurate.  (if it is, tell me where)

3. The interest rate is low unless you are purchasing this as a primary and house hacking it.

4. You did not calculate anything for utilities.

Other than that, it looks good.

Hope this helps! Let me know if I can be of any assistance.

Hi @Clifford Datan, without knowing where this new construction is, I doubt anyone on here can give you a good answer.

Your best bet is to talk to a local real estate agent in the area you are looking to buy. They will know if this is realistic or not.

In my market, you would get laughed out of the room but maybe in the Midwest, you could do something like this.

Hope this helps! Let me know if I can be of any assistance.

Hi @Jason Forman, property taxes can be found on the county website. Insurance can be calculated by getting a quote from an insurance agent or online.

Hope this helps! Let me know if I can be of any assistance.

Hi @Sean Chua, that is likely enough. However, renting by the room generally has more repairs so that is the only one you might be light on.

More people = more use = more deterioration

Hope this helps! Let me know if I can be of any assistance.