All Forum Posts by: Art Shalomov

Hey Devan! there are lots of free strategies out there to get wholesale deals and you should master those first. You must learn how to convert leads before paying for mailers. Books will give you theories but you just need to jump in with both feet. I would recommend finding a local wholesaler and partnering up with them and have them show you the ropes. It will all be worth it!

Hi Venkat,

If you are on title already, it should a fairly simple for you as the borrower. The other part is having the condo be eligible for financing. Meaning the propety has to meet lender requirements such as, having the total ratio of investors to owner occupier owners in the complex (under 50%), the hoa budget and their reserves, any pending litigation and so forth. Before starting your loan file and ordering the appraisal, have the lender just order the HOA questionnaire and see if the property is eligible. Hope this helps. 

Investment Info:

Single-family residence fix & flip investment in Phoenix.

Purchase price: $235,000
Cash invested: $150,000
Sale price: $570,000

This was my first large project in Central Phoenix

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

This

How did you finance this deal?

I had conventional financing on it and used a HELOC from my primary residence to finance the rehab.

How did you add value to the deal?

This was a 3bedroom 1 bath, 1250 sqft. Added 900 Sqft plus a 2 car garage, this became 4 bedroom 2.5 bath.

Hey Devan! You have typed out a very common question, especially in this current market. 

While house hacking would be the easiest thing to do, It doesn't make sense in this current market which many are finding given the rates and higher prices. House hacking was super easy in the last several years, but it is very different now. SO it may not be the right play for you, especially with having a young family.  In this market, you have to have a good amount of cash and/or solid income (to be able to afford to carry/qualify for higher mortgage payments.

As someone who has been in your shoes, here is what I personally would do....wait to buy another rental property for now. In the meantime, focus on how to accumulate more CASH to work with. You are saving 1500 per month now, however it would take a long time to save a good chunk to be able to buy another property. SO I would highly recommend learning about wholesaling as a side hustle to get you going. This has very little risk and will accelerate your savings. The other thing I would I do is get a HELOC on your primary (depending on how much equity you have) and maybe learn how to do lipstick remodels or value add flips. There are strategies you can use like BRRR or something similar (This involves more risk, but can also make you money if you play your cards right. Regardless, whenever you buy anything, make sure to always buy equity. Don't just buy to buy. This will help you build your wealth much faster. Once you have a good amount of cash to work with, it will be much easier to buy real estate. Stay away from out of state deals (at least for now), get a few rentals under your belt first. Also, when you do decide to buy, I would not recommend the Scottsdale market. Its super tough to get a home to cashflow unless you are putting a big chunk down. You will find that lower price points, will do much better for cashflow (this is all for down the road).

Such great info! There is always an opportunity somewhere :) Thank you for sharing! 

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $235,000
Cash invested: $150,000
Sale price: $570,000

I purchased this as a long term hold at first. It was about 1200 sqft, 3/1. With values going up in the area, it made sense to do a large addtion and learn along the way. This was my first large project that included an addition of 900 sqft and a 2 car garage, all new electrical, plumbing, roof. It was 90% new.

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

I wanted to learn how to do bigger projects and this home had a good amount of equity which allowed room for error.

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

It was on MLS. An agent helped me get it.

How did you finance this deal?

Purchased using conventional financing and used a HELOC on my primary to do the addition.

How did you add value to the deal?

Full remodel including 900 sqft addition and a 2 car garage.

I use E & G Real Estate Services for my rentals. Great service and great people.

I Would go with The lowest points or no points. The chances of you keeping that loan for 30 years or even 10 years are super slim. Lenders will always come up with better loan programs so you will have opportunities to refinance for much better terms in the next 5 years. 

Hi Kayley, I am a lender and an investor. I would be happy to connect with you and be a resource to you. 

If you have enough for the down payment in your 401k, use it. If not, do a few wholesale deals to build some reserves. Wholesale can help you do that very quickly.