All Forum Posts by: Arvi Carkanji

Did the owner have a lease in place with him? Sometimes you have to respect their old lease until that expires, depending on the state. However, if he in a month to month it's a different story. I would try to solve this in a "nice" way first before you get on bad terms with the tenant. I don't think that will help your relationship in the long term (if you want him to stay). This could create turmoil like not paying rent and having to spend money on eviction. Either way, hopefully you will resolve this soon! 

Hello Grant. I actually just started working with New Western Acquisitions as well, but in Nashville instead. They have offices in multiple states. So far I haven't bought anything from them. They have sent me deals, which they've been okay, but they haven't been great. I haven't seen any great deals for flips yet, mostly rental deals. 

Look for small local banks. I was in that same position just 3 months ago. I went to different banks and they told me my income wasn't good enough or they would only do 75% of Appraised value. I finally found a bank that would approve based on rent and they do 80% of appraised value. So it's a commercial loan 6% interest, they make sure the rent covers the mortgage at least and they give you the money. 

I'm not sure I personally like the deal. if I can't hold it long term and make a minimum of $150-$200 per door then I would definitely not do it. Not worth the time or effort. The 80% sounds like a good deal for homeowners more like. But it is hard for me to tell too because I don't know the area or how appreciation is and what the actual numbers are. Maybe you could do short-term rental instead of long-term?! I don't know, bit tough to tell how you would make money on this. The deal doesn't seem too good for me. 

Hey they @Alex Funk. It's definitely a great idea. I am currently house hacking as well. I own a 2 unit. I airbnb one side and also a bedroom in my apartment. The returns and benefits are great. The airbnb covers my mortgage, all my utility payments and I also have cash left over at the end of the month. I would definitely recommend. The most value for your money would be to get a property that you can renovate and then refinance, but a turnkey property works as well. Start by looking yourself to create an idea on zillow and online sites and I would definitely recommend  connecting with an investor friendly agent. 

I had a very good experience with refinancing a rental. I prefer to do it that way anyways because I can get a better deal with buying a deal for cash. when financing a rental with a bank you have to put money down. however, if the deal is a no-brainer then definitely either way would be great. it mostly depends on how much access you have to cash, and what you prefer to do, but I personally would take re-financing over financing. Hope this helps :) 

This is a very interesting scenario. I guess my initial thought is I don't see why not because you are still selling the house it's not a rental. But I am very curious to see if anyone else has been through this scenario. I'd like to hear some answers same as you Chaz

I think you have some good potential in your hands. I'm not sure with what real estate agents you have met, but investors love deals like that. One thing that I personally suggest for you to not get confused on is the value of the property. Yes, once developed the property might be worth in the 800s but right now it is not. Your main target market is investors and they are looking for a good deal. you may get homeowners, but the chances of them wanted to spend that much money on additions might be slim. 

So I would suggest to try and market to investors directly and leave the agents out of it so you don't pay the agent fee. Post on facebook groups, craigslist, here on biggerpockets, zillow.. and as many places as you can think of. if that doesn't work then i would go with an agent. Hopefully this answer helps you clarify a little bit. Good luck with this process and one thing i have personally learned if you cannot avoid losing money on this deal then rip the bandaid off as soon as possible, even though it hurts pretty bad :) better sooner than later. 

I would start with looking at agents that are on bigger pockets website. if they are here they most likely have an idea on working with investors and the term house hacking. 

In my opinion, they definitely have to be investor minded, they don't necessarily have to be investors themselves (my agent is not, she just understands investor mindset). If they are being too pushy about getting you to buy with the highest price than they are probably not working on your favor. 

Questions to ask them: 

Have you worked with investors before? 

Do you invest in real estate yourself? 

Are you familiar with the term house hacking? 

Are you an agent full time or part time? (full time is the correct answer) 

What areas do you focus on mostly? 

These are some initial questions you may ask and from there you will kind of know if they have much knowledge in the area, how efficient they are and if they know what you are looking for 

You could try to get it as a short sale by negotiating with the bank, but you have to be very thorough on your research and when you negotiate with the bank. You have to get as many comps in the area as you can to show how much the house is worth, maybe even an appraisal, get an actual quote from a licensed and insured contractor very detailed on how much everything is going to cost. Include as many pictures as you can from the house and the comps and be very thorough on your explanation to the bank. 

Banks are going to look for every excuse as to why it is not a short sale so no explanation or evidence is too much for the bank. It is not easy to do, but if you really want to help out the homeowner, this is one the only ways. Good luck on this!