All Forum Posts by: Brandon Rush

Yes, I had an inspection prior to closing on it. Few things came up with the roof being the biggest issue. The seller covered closing cost so I had some money to put towards the roof in the future. Unfortunately if a property does pop up which has a vacant unit, its going to be you and 20 other people putting in offers with the same idea in mind. You will need to come in strong on the offer, especially if they are MLS properties.

Hey Travis, welcome! I just went through this same process and will be moving into my first house hack in New Britain shortly. My single family should be sold and closed on by the end of the month. I have seen a number of properties popping up in Bristol for sale, have you been putting in any offers?

Another thing to note is banks may look down on the fact that you are selling your SFR and moving into a MFR, especially if you are looking to get some kind benefit of it being owner occupied such as a lower down payment. I actually had to write a motivation letter to the bank giving a reason why I am selling my SFR and moving into a MFR. It guess the letter was good enough since they granted me the mortgage.

If you ever want to chat more about my experience going through this process just shoot me a message and we can chat.

Good luck!

Thank You!

Hey Alex,

Welcome to BP. In my opinion, I would wait until you start school and figure out your house hack from there. Generally with your first home purchase you have better financing options such as low down payment conventional loans (5-10% down). But, remember that low down payments do not make a good deal. Since the market is so hot right now, you run a high risk of jumping into a non-cash flowing property with a high purchase price. I would suggest you wait until you start school, then purchase your first house hack. Since you will be there 2-4 years, you can purchase your house hack in the beginning and stay there after graduating or move on and keep it as a rental. Good luck and let me now if you have any questions. 

Welcome to BP James. My advice would be to start networking in your area to get ideas of how you can enter real estate investing. One thing to know from the start is you only know what you know. The more people you talk with, the greater your "box" of knowledge grows leading to bigger things. Good luck and message me with any questions you may have. 

I third (if that's a term) the house hack option as I am just getting into my first one now. As @Eric S. stated as a first time homeowner, you will have some great options. Outside of the FHA route, you may also be eligible for a 5-10% down conventional loan which will be cheaper in the long run. If you have any questions send me a message. Good luck and enjoy the ride!

Thanks Ryan, I will message you. Lets chat.

Thanks Nick!

Investment Info:

Small multi-family (2-4 units) buy & hold investment in New Britain.

Purchase price: $286,000
Cash invested: $57,200

First investment property and house hack! 3 - family located in New Britain, CT. Purchased with two tenants in place and a vacant third floor unit. Not a ton of work needed but will need a roof in the next few years. Seller covered closing cost to put funds towards the roof. It's the beginning of an incredible journey. Why don't you join me?

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

Was seeking out a 3-4 family in New Britain or Bristol, CT. Was specifically looking for a property to house hack. House hacking will allow for expanded opportunities by minimizing my personal expenses resulting in funds to put into real estate.

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

MLS, not much of a negotiation due to hot market conditions. Seller paid for closing cost due to age of roof. Originally I turned down this accepted offer for a potential BRRRR property in Bristol, CT which did not work out. My agent jumped on the phone and found out they were having some issues with their potential buyer for this property and accepted our original offer again. Phew, I got lucky there!

How did you finance this deal?

Conventional with 20% down, owner occupied.

How did you add value to the deal?

Not a value add deal. Tenant rents can be bumped up some for additional income. Will be a long term buy and hold.

What was the outcome?

Very straightforward purchase. No issues on either side. Simple 30 day closing.

Lessons learned? Challenges?

There is a lot to learn and your first deal most likely won't be a home run (would be nice though!). The sooner you accept that, the sooner things will happen. Taking action is really the most important step in REI followed by persistence. It took lots of offers and a gagillion (new word) BP calculators before I landed this property. While this may not be my best income producing property in the future, it will ultimately be my best deal as it will be a catalyst for bigger things!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Buyer's Agent: Michelle Lorenzetti of Investors Connection CT
Insurance Agent: Justin Sloan of BSP Insurance
Lender: Gary Root of First Choice Mortgage Services, LLC
Attorney: Joette Trinh of Keily Mira Law

Hey Jamila,

I am from Queens, NY and know your pain. Its like a whole other world in NYC with real estate prices. My suggestion would be to buy with a low down payment option such as 3.5% down payment FHA or 5% Conventional down payment for first time home buyers (if you can find this financing). Find a small multi (2-3 units), something with decent returns, and use that as your springboard as you figure things out. On a $400K property, 3.5% is only $14K. Not saying you have to spend that much though.

You can also monitor sites such as hud home store which usually allows an opportunity for owner occupants to get first dibs on foreclosed single and multi family properties before investors do. Reach out if you have any questions and good luck.