All Forum Posts by: Austen Mueller

I would do a little shopping around not all lenders are the same. However If you can afford to do that, that works too! 

Did they make it a contingency they would sell it if they could rent it out after? you are the new owner, I do not see why they would have the rights to stay 

Like all good answers..... It depends! many people are facing this question right now. For me it comes down to this... one in the hand is worth 2 in the bush. The "bush" is the idea that you will get a crazy amount of cash for your home and you will be in a great position when the market comes down. We don't know this will happen for certain or when. The "one in the hand" is the FACT you could rent that house out for good money right now! And this does not answer the the question of where you will stay while you wait for the market to come down. Everything is overpriced. people who have a lot of equity in there homes probably have it the best right now. That's partially why we are seeing such a low inventory. I do not think people want to buy in this market unless they can afford to play the game like investors or it coincides with down sizing, retiring, or moving for work. This market is great for some and bad for others. I don't know your financial situation so I can't truly answer your question. But be practical and honest with yourself. Play out the worst case scenario before you invest. Getting too hasty in the beginning of your investing career can be detrimental. Maybe something to consider is taking some of that built up equity out and using that for an investment property.

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Well when it comes to money. The more the merrier. But if you are buying a duplex around 225k at 3.5% down you will need about 25k to get yourself started. I think that is a good target to shoot for. 

well it depends.... What your market is like. Im from central PA and if you go into the city you may be able to find a duplex this will work with, however you get what you pay for. The area may not be as desirable for you to live. Depending on home/work situation. It may be worth saving up a little longer to get something a little nicer with less headaches. You dont want to leverage yourself all the way. You may get stuck with a property to can't afford to fix up or handle any adverse situations that arise. Cheaper the property you buy the chances are it will need more TLC.  

I live in a camper currently. Can't speak to the airbnb side of things. Things to note when living or staying in a trailer....

is it a rubber roof? I would spend the money to build a shell around it. 

You need a 30 or 50 amp outlet depending on size of the camper and appliances. 

What is your water source? and remember you will have to anti-freeze your system for winter months. So you will likely not have any income at this time without doing further work to prep your system for this. 

And the question we all want to know... where does your dookie go? all greywater/waste gets held in a container below the trailer and usually gets gravity feed out into a septic system of sorts that will have to be emptied annually. Is this connection present? 

Biggest thing I see is routine maintenance and answering questions from people that are unfamiliar with staying in a camper. Pros is there cheap and people will almost pay you to get them off there hands 

cons are they take a little "know how" in the beginning. Maintenance, and dealing with the winter months.   

depends on the state but they need a 30day notice in most states. I would do this and take a picture of it on the door. Or raise the rents to what makes sense for you if they don't want to leave. Make sure you do not live in a rent controlled state. If you properly serve them the notice and they still don't leave then you proceed to filing the eviction. 

From what I can tell looks like a good deal.  I set my maintenance to $1500/yr.  I don't know the area so I cant speak too much on the vacancy, but I usually calculate at 7-8% in a good B area.  

Best of Luck to you! 

The short answer is "it depends" If your buying cash you obviously need 70k. If you are using conventional you will need 20% of that. If you are going FHA you will need 3-5% of that, plus any additional closing and repair costs. Breaking into REI can be tricky if you do not have that upfront capitol. It can be nerve racking knowing you saved for years and now it lies in the fate of a single property, especially if you do not have the confidence from experience. Start with talking to an experience mortgage pro. They can tell you what you can afford (purchase price).

There are other options to consider as well... Are you planning on doing a live in flip? have you considered househacking? to take advantage of lower interest rate. Do you already own a home you can leverage? either with a cash out refi or to rent for extra cashflow? 

There are many roads to starting your journey. Make sure you are taking the one best suited for you, given your risk tolerance, financial situation, and familial situation.  

Hope this helps! welcome to BP! 

Sincerely, Austen Mueller