All Forum Posts by: Caleb Waller

Man biggerpockets is the greatest. Thanks to you all for the quick and helpful responses!! Are there any areas in particular in Hagerstown that the beginner investor should stay away from?

Best regards, 

Caleb

What's the deal with Hagerstown? Just searching the MLS you can find what appears to be decent cash flowing properties that require little work.

What am I missing here? 

It seems like a great place to start for newbies who can't afford the DC Metro Area's prices.

Would love to hear more from those who are investing in the area and what the population and employment growth look like?

Thanks!

- Caleb 

Wow. extremely impressive and powerful story @David Zheng !! Thanks for the encouragement. 

Thanks @Steven Loveless !!! I think what you have found is pretty rare from most people I've been talking to. 

My plan is to rent it out with a solid 1 year lease prior to purchasing our next primary residence. 

I am going to keep searching for the right lender with the best terms. 

One thing I've learned from seasoned pro's is "where there is a will, there is a way!". 

Gotta keep hunting.

Thanks!

- Caleb 

Thanks a lot for the input @Albert Bui !!!

Very true a bout the slim margins. 

This forum has been incredibly helpful. 

I think I'm going to live another year in the property make a few more renovations and see if I can refinance again to lower my PITI payment even further in order to create a safer buffer of cashflow.

I definitely will look into commercial loans too as they seem to be more investor friendly, especially to someone like me who is just starting out. 

Thanks!

- Caleb 

hi @Katherine S. it is PITI. Sorry to not clarify that before...

Thanks for all this helpful feedback! As far as the cash flow goes, if I can get $2500 rent and my mortgage is 1695 then still factoring in expenses and self managing I see plenty of room for cash flow. Now, if I can only get $2000 then you have a point. Using tools like rent o meter and zillow show the current median range of $2100. 

Between posting this and replying I contacted a lender and they said their debt to income limit for fha is up to 56% and their conventional is up to 45%. Which means I actually might be able to cover the two mortgages within our current income depending on our next purchase price. 

Do you guys have any input on qualifying for a second mortgage with such high DTI?

This is definitely more of a house hack then a BRRRR strategy, kind of a hybrid live in buy and hold.

Thanks for all the input! 

Hi Bigger Pockets!

Please help an aspiring real estate investor analyze my current situation and options.

Here is the scoop:

My wife and I purchased a bank reo town home in 2015 for $255K with a 5% down conventional mortgage. At the time of purchase the house appraised for 275k (which I thought was a bit low but whatever...) This has been my primary residence for the past 2 years and during this time my wife and I repainted every single inch of the interior, fixed up the yard, and remodeled the kitchen among other small cosmetic fixes. 

The house just reappraised for 320k and I close on a cash out refinance tomorrow to pull all the money we have put in and our profit (30k in cash total) in hopes for renting this home out and purchasing another primary to repeat the process with.  

Our new 30 year fixed mortgage is $1695 a month and rents in our neighborhood range from $2,000 to $2,500 a month. We are hoping to do a few more improvements before renting to help our chances of commanding the highest possible rent. 

Here is where I am getting stuck with the BRRRR strategy, obtaining the second mortgage. I have started calling around my local credit unions including one I am a member of and they all tell me that in order to count rental income towards my qualifying income I have to have 2 years worth of claiming the money on our tax returns. Does any body have a way around this? or does anybody know what the current debt to income ratio limits are for obtaining a second mortgage to purchase a primary residence?

Any and all information or advice is much appreciated!

Thanks!

- Caleb 

Hey BP! Quick question for all the professionals on this thread:

Should I take out the equity in my home now via a cash out refinance while rates are still super low?

Or should I wait for more appreciation and hope increasing rates don't eat into my profits?

Your thoughts?

- Caleb 

Hi @Nicole A. the terms are interchangeable and mean the same thing. 

Here's some more information:

 http://articles.baltimoresun.com/1997-04-15/news/1...

https://www.columbiaassociation.org/about-us/polic...