All Forum Posts by: Andrew Zannotti

@Renee Yarbrough I highly recommend taking it as a learning experience. Specifically analyze what went wrong and use it on your next deal. I'm currently in the process of my first BRRRR, I've made quite a few mistakes but I'm so excited to use that knowledge the next time I pull the trigger. You don't learn anything when things go right, but now you have some stuff to help guide you in your next venture. You got this!

@Jermaine Mitchell you can always ask for owner financing, the worst they can ever say is no.

@Jermaine Mitchell

1. The contingency I'm being able to view the rents and the inspection are probably your biggest. you can pretty much put anything you want in a contingency but it's up to the seller to agree to those terms.

2. As for The upfront payment a 203K is probably your best bet if you're looking for least money out of pocket, I haven't used one myself but it does give you the least money required for a down payment unless you have a VA loan you can use. If it's a really great deal perhaps you can find someone that's willing to go in on the deal with you. I've never really looked into it but there was somebody on here that posted about a company that's willing to foot part of your down payment for a share of your equity, maybe you can Google that one it may have something that helps. Some people will tell you HM but unless you're experienced in it or do you have some tire type of private funding you're going to have to bring more money to the table than you would with a 203K. Hopefully this helps some.

Please excuse the grammar as I'm using my phone

@George Walker IV while everyone in here does have a different way of looking at it there is a ton of valuable information listed above. Being active duty myself I definitely think it's doable. The two biggest things I would point out that I don't think got enough emphasis above. If you plan on house hacking, understand that the house you buy is not for you, it's for the tenants who are going to live in it after you, my points in this or don't fall in love with the property, will the numbers actually work for you if this is the wrong property, if you can't cover your mortgage, taxes, insurance, maintenance, and CAPEX with what you can charge for rent the numbers don't work, I made this mistake when I bought my first house. Next, I don't advise self-managing property, the reason I say this is it if you do move every two or three years which I have throughtout my career it could potentially affect your work, and I'm going to make the assumption or right now that's your primary source of income so you don't want to mess that up. Last, if you can find properties that you can work on while living there you can definitely make your money throughout the years. There's a Facebook page called Active Duty Passive Income that I would recommend, full disclaimer the page try to sell you stuff which I haven't bought but it is a good way to connect with other service members that are actively investing. Hope this helps out some.

@Chase Romine Congratulations on starting your journey, I'm doing my first BRRRR now using HM. Depending on what you are trying to do and what resources you have available to you the FHA loan is going to be the cheapest up from because it's only 3.5% down and you can buy up to a 4-Plex using it to my understanding. Contrary to what many say you will have bring money to the table for a HM purchase, I shopped around and the average I found was 10% +2 points at 70% ARV and 80% LTV. It just really depends on your game plan, HM doing something like a BRRRR definitely allows you to put you capital or most out and build equity but the FHA on a MULTI with little money down is a great option too if the rent numbers work to pretty much give you a place to live rent free. Best of luck to you!

@Chase Griffin the above stated information is pretty much the basis that I'm going off of for my BRRRR I'm working on, I would go a little lower on the CAPEX to maybe 5% if I am doing alot of renovations up front and from what Zillow says they are. I would also call 3 property managers in the area and ask them about what they think the duplex would rent for, what's the vacancy rate look like in the area, and how is the neighborhood to have the types of tenants you will have to factor in for your numbers.

@Tre'nez Deriggs I'm doing my first BRRRR right now and I used hard money for the initial purchase. All in all it's been a pretty good experience, it took a couple days longer than I expected to close due to some underwriting hang ups but it got done. I'm doing the rehab now and I already have the tenant lined up to move in once complete. Still working through exactly how I'm going to do the refi portion of the deal. Feel free to message me if you have any questions that I can help with.

@Chad Trail I currently live in Killeen and I'm actually doing a rehab for a BRRRR here now. It's literally just like any other area, good and bad parts. I bought a duplex in a C area and I have a really quite tenant in the side that is filled that I'm hopeing stays for ever and I actually met the people that will hopefully be moving into the other side once it's complete. Yes, it is a military town so you do have the ability to get your stuff messed up but I think it's all about tenant screening and looking for the right area to purchase in. The biggest concerns for me from I have seen have been the insane taxes and concerns about high turnover due to it being a military town.

@David Desousa I'm just starting out myself so I'm just telling you what I did myself, not trying to sound like I have a ton of experience because I don't if it came out that way. I started out with 25K but I went the HM route. I would ask about the neighborhood, do they recommend owning investment property in the area, what do they think the rental rates for the each unit will be, how hard will it be to get it rented, what type of tenant will you get, etc. Being like you and just starting out I realize that I'm working on a budget so I am focusing on CF on my properties right out the gate so they may require a little more tenant maintenance.