All Forum Posts by: April Littleton

Hi BP fam I have an update on my journey and need tons of advice. So I still haven't closed. The original bank that I got my pre-approval through changed their guidelines due to covid. So I scrambled to get a new loan, which I did and they even have a better interest rate. The underwriter however is being extra thorough and has pushed the close twice now. I guess that isn't a bad thing though because I was just informed of a restructuring within my company and I may be losing my job or moving out of state. Thus all the advice needed. So here is where I stand. I have put up the $500 earnest money, paid the $545 inspection and the $645 appraisal for about $1690 already spent. The property I was buying was a converted duplex in Dayton, Oh. I offered $120,000 and it appraised for $130,000. Cash to close is about $10,000. I plan to house hack and live in one side and rent out the other at $750/month. At a minimum I'll need to add a fridge and stove to the other side. Now to the questions:

1. Should I still close knowing I might be moving?

2. What happens if you can't stay in your fha home the entire year?

3. The side I intended to rent out is not functionally obsolescence or however that lingo goes, you have to go through the kitchen to get to the only bathroom. Should that deter me from buying?

4. How would I change the setup of that side so you can access both separately and not make it so weird?

I hope I've provided enough information. If not just let me know. I'm a newbie in desperate need of help and FAST 😞

This is so amazing and inspiring. Thank you so much for sharing. Can't wait to chat 😊

Linda thank you so much for sharing. I'm starting out in the Dayton area and would love to learn more and connect with more people. I have my first property, a duplex, under contract scheduled to close in 2 weeks and trying to figure out plans for my next deal. Would you be open to chatting?

There has been so much great advice and wisdom in this thread thank you for posting the question first and foremost Jordan. I want to echo one of the lesser recommendations about starting in your area. Not to shy you away from going outside of state but just to get you to say "How can I...?" Because right now it seems like you are saying no and that just puts a wall around so many possibilities. So if you're willing to do out of state that should mean a 5-hour radius shouldn't be an issue either for example. Or at least setup notifications for what you are specifically looking for and at least keep the door cracked. I'm just learn that on this journey our speech and mental have enormous affects on our outcomes and I just want you to do great 😊

Congrats on the property! Where did you find this property? How did you finance this deal? I've heard about $1,000 properties in Dayton. I just thought I missed that boat. Thank you so much for sharing. 

Originally posted by @Brandon Sok:

Investment Info:

Small multi-family (2-4 units) other investment.

Purchase price: $89,000
Cash invested: $48,000

Duplex that we House Hacked. Put 20% down + 30k in rehab expenses. Cash flow is $800 per month. ARV is $170,000. We haven't fully executed the full BRRR but are considering.

What made you interested in investing in this type of deal?

I wanted to get started in REI and also reduce living expenses. This duplex checked both boxes.

How did you find this deal and how did you negotiate it?

I went to a showing when the house was listed at $139k then waited 1 year till the price eventually dropped to $89k. My wife and I offered that day.

How did you finance this deal?

FHA 30yr at 3.75%

How did you add value to the deal?

Completely rehab of the interior of the house.

What was the outcome?

Great first home for my wife and I with continued cash flow since we've moved out.

Lessons learned? Challenges?

Always add a 15%+ cushion to a rehab project! After passing inspection we had to replace every inch of plumbing in the house. Also, if house hacking with a spouse, make sure you communicate expectations early and often. Stress adds up so it is important to be on the same page.

Thank you so much for sharing. You did an amazing job on the rehab. How long did it take to get each side renovated? Who was your plumber for this job? Would you use them again? Also why did you end up putting 20% down with an FHA loan? Sorry for all the questions. I'm new to investing and just trying to learn all I can. Thank you.

Paul that is very impressive, 31 SFR. I would like to learn more about your strategy and how you analyze properties. I'm reading Brandon Turner's book on rental property investing and it is making me rethink SFR. I did read about your company and if back taxes falls in the category of title issues I might have found a duplex that might be up your alley if you are open to small multi-family units. Thank you.

Thank you so much for this thread. Congratulations on the purchase Anthony. This is going to be a very great property once things return to "normal". I also appreciate you sharing your agent and lender. I am starting out in real estate and am new to this whole thing. All the advice and referrals are truly appreciated. Please keep us posted on how you and your team house the property during this pandemic.

Thank you so much for this thread. I am starting out in real estate investing in Dayton now. I'm in the process of closing on my first property, a duplex in 45404. Where would one meet wholesalers? Do wholesalers only deal in cash? I want to start preparing for my next property now. Any advice will be greatly appreciated. Thank you.