All Forum Posts by: Andy T.

I’m grateful for everyone’s response! I’m going to dive more into these interest rate buy downs and talk to my lender about it. 

@Erik Estrada @Eric Boshart that sounds like an interesting way to lower the rate. I understand the concept but how does that look like on paper if you wouldn’t might breaking it down I’d appreciate that.

I had a plan of house hacking but with my siblings and cousin. Idea was to get a house for 1-2 years then refi and move to another house and acquire properties like over time. My question is if we do a 3% Down conventional loan would we be able to negotiate with the lender to lock us in for a lower mortgage for a short fixed time like 3-5 years? Is that even a thing conventional wise?

@Leo R. @Chris Seveney

Leo I agree with you. Being transparent I’ve been wanting to get into investing for a while and I kept beating myself up cause I made excuses in the past and finally this year decided I’d go in head first. Well these are the mistakes I gotta own and learn from doing that. I know my strategy right now is not what any of you guys would recommend any beginner. But I had to do something to get started or else I’d kept kicking the can down the road, I had to get uncomfortable. It’s not an A property I do have reserves to cover the heloc thank god. 

Chris that is great advice. I just went with what my agent said like I mentioned above. I’ve got two exit strategies and one is refinance at a later date and 2 would be to sell the property. And yes I have reserves to cover the short fall. I’ll never forget this mistake in the future. 

I appreciate both your inputs guys. I’m learning right now and I was so nervous to post this because i was embarrassed to but I’m glad I did you all gave amazing input. 

@Drew Sygit I’m duly noting everything you said. I paid 10k cause supposedly it would make my offer look stronger and stand out. Which it did but I def learned that 10k really does put me on the hook incase I do wanna back out. Lesson learned. Area is b-c loacation. Decent tenant pool. I appreciate the reassurance. Worst case I was thinking I’d sell it if it’s too much of a headache and start over. 

@Leo R. currently without calculating the heloc payment which I plan to pay separately it’s about 342 

@Travis Biziorek I’m about to close on 2/28. And I’m sorry for not being clear. I was more so venting how I miscalculated getting my initial investment back because when I went in on i didn’t factor in paying back the heloc because this deal doesn’t require much renovations that would up the value enough to pay back the heloc in 6 months all at once. Where now I’m just paying it down over time. 

@Jay Thomas that is true and a solid point to be able to cash flow at 7% I’m definitely taking this advice. I appreciate your response 💪🏼

@Marcus Auerbach thank you. Im definitely going to do better next time. I couldn’t wait to get my first deal so I missed so many things. I agree on the thinking long term because one of my issues was thinking in short of how to get my initial investment back but that can wait I’ve def got time. 

Wow I did not expect so many responses. I’m grateful for everyone’s input. 

@Rebecca Knox it is retail. I was told the owner had replaced the roof recently and redone the foundation. Both units are slightly updated and are in good livable condition. I did not require proof of on time payments. And in the contingencies was 10k em and to waive repairs under 5k. I did factor in the taxes being higher. After seeing this I did ask my realtor to get records for on time payment.