All Forum Posts by: Brennan Bogdanovich

Investment Info:

Single-family residence buy & hold investment in Roswell.

Purchase price: $405,000
Cash invested: $35,000

Bought my first real estate property by utilizing the house hacking strategy! Have been renovating since January 14th and just secured my first tenant. I am in the process of looking for 3 more. Excited to see the benefits of principal pay down, depreciation, cash flow, and appreciation. Now it's time to start saving money and do it again!

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

I took David Greene's advice and was looking for ways to find value. This property was advertised at a square footage below the actual. Using the house hacking strategy, I was able to get a 5% conventional mortgage with a 2.625% interest rate, which is also a huge plus versus putting 20% down.

How did you finance this deal?

5% down conventional mortgage rate. I was able to find an investor who helped with renovations and signed as a non occupant co-borrower on the deal for a share in the profits.

How did you add value to the deal?

Renovated the property by putting in new floors, paint, back deck, gable, sink, faucets, etc. This will hopefully allow me to get another appraisal in a few months and appraise out of PMI.

Lessons learned? Challenges?

A challenge so far has been finding roommates. I am thinking the difficulty is because it is an odd time of the year for people to be moving.

Thank you for all of your responses!!! From what I understand, it looks as though 100% finance with a 65% LTV ARV is the way to go if you have a great deal. For a good deal or my first time, it is better to go with 80% purchase + 100% construction.

Still trying to decide between a BRRRR strategy and house hacking as my first deal but will definitely keep all of this in mind.

Thanks again!

Brennan

Hi all,

I am looking to buy my first rental property and I'm excited, but understandably a little overwhelmed, during the process. I am looking to do the BRRRR strategy and have called about 45 community banks here in Atlanta. None are doing investment loans right now where they can also lend on construction. Hence, I am looking to a hard money loan for the whole project. After calling quite a few hard money lenders, I am seeing two prominent options. What is your opinion on the better of the two below options?

1. Will lend on 80% of property purchase + 100% of the construction fee. 

2. Will finance 100% of the whole project with 65% LTV of the ARV.

Thanks!

Brennan

Hi Mehul! 

I appreciate the big picture advice! The medical school loans are definitely not ideal and being able to invest and appreciate wealth versus acquiring hefty amounts of debt is a seemingly easy choice. Yet, I do have a deep appreciation for science and serving others.I will keep this advice handy, and regardless, real estate is something I would like to continue to pursue and help maybe offset some of the debt. 

Best,

Brennan

Hi Francis, 

This is great advice! I appreciate the help. I will definitely make sure if accepted to a school, that I purchase the property while I still have income. Did you look into an FHA loan? Or was the property too far away from school to where you didn't want that to be your primary residence?

Lastly, any first-hand experience advice you might have on the 203K loan? I still definitely need to do more research there. 

Thanks!

Brennan

Hi all! I am new to real estate investing and have listened to about 24 episodes of the Bigger Pockets Podcast now. I recently graduated from college with a biochemistry degree and am working as an EMT in North Atlanta with the hope of getting into medical school. 

I believe my first investment will be a duplex or a triplex. This will be in whichever city I get into medical school next August 2021. I currently have a steady source of income from working multiple jobs and am living at home to continue saving money. Josh and Brandon have talked about it being much easier to get a loan while I have an income. I have two questions: 1) Based on limited time availability, is this type of house hacking a good first investment? 2) If so, would it be advantageous to seek out a possible FHA and 203k loan before I stop working (to enter school)? I would also have to take out a loan for schooling and some living expenses. Thanks!

Best, Brennan