All Forum Posts by: Chris Hiatt

If you wanted to keep it as a rental but wanted some equity out of it, couldn't you just refinance it after a set period? Get your cash out and use it on another deal while renting the original out. This is if you think the property will keep consistent renters for the foreseeable future?

@Braden Hobbs thanks for the response. I am aware of DTI ratio but didnt know about the front and back-end differences. Learned something new today.

What are DTI restrictions?

Seems like a WIN-WIN situation. I am curious to hear the responses.

@Nick Patterson I will have to respectfully disagree with you. I have a lot of coworkers who work the same amount or more than I do and do great in real estate. In fact the a member of the site that is a coworker is the one that referred me to this site. I want to thank everyone for the input. After A LOT of reading and studying and talking with people I am getting a much better plan together. I am putting things together to be able to begin my journey. I guess the most important thing that I have learned so far is that you have to have a solid foundation for this. I am working diligently to create that for myself. BP has been a great resource thus far.

Devan Mcclish thanks for your POV. I really thought about what you said. First thing I need to do is figure out what my vision is. Right now with me being gone so much for work I believe that it is realistic for me to build a rental portfolio. That doesnt mean I am not open to other things but I believe that will be my main priority while I learn about other avenues of REI.

The best plan that I have come up with is that I DO want to keep that house as an asset for the future. I am not looking to get rich quick so I do not mind building long term wealth. I have an awesome job that provides me the quality of life that my wife and I enjoy so no rush. 

I believe that I want to refinance our house by putting 33k down and getting the total to 132k with either a 15-20 year loan. That will put me at $750-$900/mo on total mortgage payments. I would then plan on living in the house for about another two years where I will build my cash and investments back up. When we have enough capital to purchase our house ''properly'' with at least 20% down then we will do so. 

Again my real estate goals for now are to own approx 3 rental homes where cash flow is ~1500/mo. After purchasing my next home I would rent my current home for 1200-1500, my current area rental rates. I believe that I could get closer to the 1500. That would give me steady cash flow with a very substantial bit of equity in the house. If I decided to sell it, it would be a win but also if I rented it....WIN-WIN! 

This is all just from my wife and my W2 jobs. During this time I would like to buy and rent other properties making the cash flow. 

That means at 43 I will have a house that is paid off and making me a good amount of cash flow and that is something I can get excited about plus other rental properties. Makes me feel old when I think about it like that. 

Does this sound like a much more feasible situation than the one I am in? Also, how is the refinance process, pretty smooth?

I am looking to buy my first property but am trying to figure out what the best action would be, if any, in my current position.

I live in a 3/2 5 year old home in a subdivision. The original owner had a lot of custom options installed that we see a lot of other homes in the neighborhood dont have. We have also done a lot of upgrades that I believe will make the home very appeasing for renters or buyers. 

The issue I have is that my wife and I bought the home under an RD loan. We put no money down and 100% financed the 175k. We now owe ~165k. My total payment including escrow and everything is 1015/month. My wife and I collectively make 160-200k a year depending on how much I work. We have 80k in cash and investments currently with a portion of that being our emergency fund. 

My question is I dont know what to do with our current home. The mortgage payment is no problem at all to pay every month. However, I feel like I will never make money on it at all even if I rent it.

Should I just sell it, rent it, refinance it and put $ down to get a lower note to make $ on rent, or just continue to live in it? 

If I rent it then I would ask 1200/mo. That would not give me much cash flow. If I sell it with all the associated costs I will most likely break even. We like the house so we dont mind living in it. If I was to refinance it I would get a lower note and make cash flow on the house but I would be paying myself back the money that I put down. I want to keep as much cash as I can so that I can have capital to make deals.

Open to all suggestions!

Flippers, people that have rentals, and buy and sell professionals,

When you are rehabbing or upgrading a house for whatever reason, have you chosen to go the route of cement staining? If so, how would you say that the renters or buyers reacted to it? Was it a hit or miss? I believe that it is becoming a more popular attribute for people buying homes for the low to no maintenence and look. Just open to hearing what your experience was good or bad. 

Thanks!

Welcome to the BP community. Can you tell us a little bit more about yourself? Background, goals, and what you are looking for.

With wholesales are you able to do the ''home buying process'' where you get an inspection period and there is a formal written contract with contingencies? Or are they typically a buy as is, cash kind of deal?