All Forum Posts by: Account Closed

 well first off on being way ahead of the game by having some cash to start ! that always good ! 

House hacking is when you move into a multifamily and get the benefits of primary residence lending (low down payment , lower rates , fixed rates !)  I have house hacked a couple properties living in each a year or two and I am just now at age 27 buying my first house for myself ! lol

As far as what to invest it really depends on what you are looking to do.  for me I want monthly cashflow so I like buy and hold investments because I get cash every month flowing into my accounts and I own the asset they live in.  Flipping typically (not always) a bit more job like causing you to have to be on the property more but you can make a ton of money quick .  both have tax advantages and disadvantages .    That being said some flippers are super passive and have great systems in place .  

Its hard to say what you should do , you should do what you enjoy more.  My advice would be listen to the BP podcast and see what types of investors peak your interest and what podcasts are more exciting and interesting for you.  whichever type of investing that is I would pursue that.

at the end of the day you need to love what you are investing in ! 

 so !

1. Refinancing may be an option after doing major work in the realm of 55K but I do not like to rely on this as an exit strategy.  its more of a bonus in my eyes!  

2.  Seller Financing would definitely be something to have your agent ask if the owner is willing. 

3. The FHA 203K loan may be your best bet. This loan would allow you to buy the house with little down and actually finance the 55K of repairs into the purchase price. I would speak to an MLO at a local bank about if the property qualifies etc!

@Account Closed

Hey just make sure you are being brutally honest with your numbers.  Its easy to get excited and cut %s on cap ex and vacancy rates to make the deal look better but the truth always prevails!  I have learned this the hard way.  

Obviously you may be doing it right already but just a quick tip 

 Maybe look into markets on the outskirts of this area to see if the prices are better.  I do not invest in markets that have prices themselves out of solid cashflow!

@Pierre Toussaint I LOVE the amount of detail and care you have put into this !  Overall you can see that you have done your research.  The only thing I would say (& hopefully I am wrong) is that most of the time you purchase something that only needs 3-4 K in work , you will not get a big enough bump in equity to pull and equity line out on that property.  most traditional lender will lend between 75-80% of what they believe the property is worth.   I am not saying its impossible because if you get a good enough deal its very possible its just not as common as people think  !

Join your local REIA and see who is exiting the game soon or if someone is motivated to sell any properties . I found my off market deals through connections and a bit of luck. You more than likely will have market heavy to find these deals consistently or get the deals fed to you by a local wholesaler .

Good luck ! 

@Kevin Ha I would recommend looking into a multiunit that you can move into.  This well help you live for free or cheap that alone will help you save money for your next deal.

Also when you are moving into a property you can get into a property with very very little money down. If you do an FHA property you can out as low as 3% down and also get a credit of 6% to help with closing costs ! its a great program and a great way to start cheap !

Diane ,  look into the areas around Schenectady .  A huge Cassino is opening up in Schenectady next month and things are going to change big time around here .  We will probably have some new slums and some new prestigious areas due to the casino .  That being said I will refrain from saying specific areas for sure until I see the impact this will have.  One area I have my eye on is rotterdam , ny I think people will want to move a bit away from the cassino and this is an area that has a bunch of distressed properties for cheap .  Taxes are a bit high but some deals are still worth it ! 

@Account Closed Clayton is spot on with his response as well!  

You do need to know what you can get approved for . Just make sure you do this when you are ready to take action because you do not want to ding your credit score every 30-60 days for a new pre approval .  

If you feel comfortable with analyzing deals and find a price point you are ok with being some comps to a MLO and see if they can make it work in that price range 

@Clayton Plank 

You don't understand how much I appreciate your help!  

I thought maybe a few people would connect and I would dig deep with them this is way more awesome though haha.  I hope more people in the community start to pitch in as well !  These investors all are looking for guidance and we can help them !

Also the post is blowing up but you should see my inbox hahaha .

Thanks so much !