All Forum Posts by: Austin Johnson

I like Fort Worth!

that being said, you're mixing a few different strategies here which may not be allowed. you're wanting to house hack (so 3-10% down payment?) and live in the property while you rehab it. (I'm doing this myself!) typically a personal home you cant borrow a down payment. you have to have proof that you have it. if your credit is trashed as well, it's going to be very rough. 
starting out, I would make pull back on the reins a bit and develop your credit, save up funds and knowledge. figure out the exit strategies first. 

OR. you can do a JV. have your partner bring the 20% down payment and closing costs. rehab it and refi it.

my method to the madness.

first: walk the outside and check foundation. walk it again, checking the siding, gutters, roofing if possible, drainage, etc.
take pictures of everything worrisome.
enter the house and go straight to the basement. again, foundation check, take photos of the area. any wet spots? cracks? unfished areas? closed off areas you cant see? 

then go upstairs, look at finishes, flooring, etc. it's funny because the main level is the last thing I worry about. 

I'm glad I'm not the only one struggling, hahaha. I have a 70lbs black lab (Female, 10 months old) she sheds like a dandelion.
back to the post. OP said he had a weight limit and 50lbs exceeds that limit. im not sure the purpose of asking?

fingers crossed! maybe we can snag some deals at 10-15% discount! woo! 
but realistically, I can see a plateau effect. not a crash. population is up. completed builds are down.  

uh.... I wouldn't advise doing this? pretty sure this could be a massive liability to you.

everything Scott just said. do NOT leverage yourself in order to invest. is the minimum on the syndication $100k? if so speak with the GP and give them your situation. depending on the size of the raise, they may make exceptions (We're limited to a 35 non-accredited investors in a 506b)  
if you're accredited, speak with them. They are way more likely to let you invest less! 

 suggestions or places for aspiring investors to look for finding these type of groups?

I always hear 'go join a local meet up! its so easy!' except it isn't because there was a local meet up but it stopped because of low attendance. I'm sure others have this same issue

joining a mastermind group has been MASSIVE for me. being able to chat with, bounce ideas off of and act like a sponge and absorb everything people are saying has propelled me forward. 

@Saurabh Patel if you're simply running numbers to verify/ learn there is nothing wrong at all.
what I would do is go to the county website and see if they have taxes listed (I know Tulsa does for example. the county I work for does not but if you call I'll answer and gladly give you the taxes). from there use the taxes per year as the insurance as well. (so $650 in taxes means make the insurance $650 as well) this might be off but is closer than you can imagine.

keep an eye on the upcoming recession as well. one thing I've been doing is adding 2-3% vacancy to the current rates based on my assumption of damage the recession will have. it's so hard to talk via forums. I'd love to chat sometime if you have any questions!

I just assume nothing will change, interest rates will forever be at historic lows and tenants will always pay!

I'd adjust the 28% to 35% (10%PM, 5% for each Maint, Capex, Vacancy, Insurance and tax) obviously verify the values before closing.

for caluclating interest rates I use a forward curve. 
https://www.chathamfinancial.c...

I try to predict where the rates will be when I want to refinance, I then underwrite with those projections. so if i buy now, two year refi (just making up a refi target) july 2024. predicted based on the forward curve is 2.68%. plus 2%. so 4.68-5% projected in july 2024. 
that's how I'm doing it.  I would never buy at 5.5% and assume in the future you can refi for 3%. if you do that, please get into Multifamily so I can poach your deals when you have to short sell.