All Forum Posts by: Ari Hadar

Ryan Dossey's Youtube channel is incredible. He goes into tremendous depth and isn't trying to upsell you into his guru mentor program. His marketing systems have been tremendously helpful to me for growing my business. 

Hi everyone, I'm new to Bigger Pockets, and I have a few questions that I'd be quite interested in getting some opinions on.

For a little bit of context before I get started, I'm a college student in Louisville, KY with an internship that pays me quite well, so I'll actually have a significant amount of money saved and invested in index funds by the time I graduate.  I'm interested in using some portion of that to house hack once I know what city my first full time job will be in.

My first concern is, I often see it recommended that people should use a low down payment loan, such as an FHA loan, to purchase a small multifamily property to house hack, but this seems like an excessive amount of leverage to me. I'm not loving the idea of buying a property and only having, say, <5% equity in it. Is the best solution to this to simply find a better deal so that I can gain some equity at the buy?

Secondly, I would like to transfer whatever property I purchase over to an LLC at some point after I move out, but I'm a little confused by some of the explanations I've heard regarding this process. More specifically, can this be done legally without triggering the "due on sale" clause in the original mortgage?

I feel like house hacking would be a great way for me to get started in real estate.  I just want to make sure I have my ducks in a row before attempting to move forward.

Thanks in advance for any advice you may be able to offer me.

Brandon

https://getinvestable.co

Here is another free calculator.

@Ari Hadar Yes, you always check comps. Yes, it's tough in 2020 but distressed properties can be negotiated lower. 

@Ari Hadar The 1% rule is useful for buy and hold investors, yes. If the asking price is good the negotiation/value add could make the deal worth it. It's everything in my market unless the intent is to flip.

You can take this conversation back to the original post. A LOT of novice wholesalers don't understand it. They think they have "good" deals but actually it's terrible. Some of then actually fudge the numbers... but not all of them. Smart investors won't buy it. The cash-flow or flip profit is slim. I'm a patient person but I can't work 9-5 and rehab properties for free.

@Ari Hadar "worth minimum 407k... the house is in rentable condition and rents for about 2.4k/month."

Those are terrible COC returns. As a rental you'll lose money every month holding it. If there's a value add play (extra bdrm, etc.) then that changes things but he didn't mention it.

@Orlen Fuentes Congrats on hustling and finding the first deal. From an investor/buyer stand point (something you'll want understand) the numbers don't work as a rental. The only thing that interests me is CAN I FLIP or house hack? If it's worth $430K you'll need to purchase it way below that. It's the nature of wholesaling. It's not a DEAL until that contract is signed. Good luck man! Find a number and stick to your guns. Good luck.