All Forum Posts by: Cameron Mitchell

Hello BP,

I am a new landlord with my first property. I just put a lot of my own money  into the property to get it rent ready. I am having difficulties renting it out in the winter. I have had the property on multiple different sites such as craigslist, Zillow, zumber, turbotenat. I have had a lot of people interested. Lots of viewings, calls, texts, and emails but little applications. I want everyone's thoughts on a couple things

Government Assistances? Consider them as income or no?

Approved incompetent applicants to save money/get it rented in the winter?

What do you all think of a co-singer for income/credit/others?

Any suggestions on how to get this unit rented out in the winter?

3 beds 1 bath $1,300 for a unit duplex
Requirements I "Use"

600 credit

3x monthly rent 

No evictions

Clean background

I am not able to do a FHA loan for a couple reasons. One being the house isn't in good enough shape to go FHA, Two being I am having my dad Co-sign and he isn't living there. I've looked around a couple places and everywhere was right around 2.7%-3% but my lender explained since its a duplex that's why its 3.75%. I added insurance to the math but didn't need it because the 950 includes that, and yes I believe the owner needs to pay sewer and water which runs around 150 and the taxes for the property are $2,000.

Thank you for your reply!

Hello BP!

I need some advice. I have an offer in on my first deal and the inspection periods ends on 2/4/21

Details of the property: Its a duplex for 135,000 I plan on house hacking it for one year and then moving out. Its a conventional loan with 15% down, 3.5% on interest, and low closing costs. Total money down 35,000 including some repairs. 

Expenses: 

Loan - 950

Insurance - 175

Vacancies - 90 ( 5% ) 

Capital Expenditures - 90 (5%)

Repairs - 90 (5%)

Total - 1,400

Income - 

Bottom Unit : $1000

Top: 700-800

Possibility to make it into a triplex and collect another 500-800 down the road. 

Cash Flow - 300-400

ROI - 10% - 13.7%

Cap Rate - 2.6% - 3.7%

This is my first deal and I would love to hear peoples input. I am very nervous about the deal.  The address is 1521 Garfield Court, Saint Cloud, MN if you want to see it. I don't think the house will need more than 10,000 just windows sooner than later, paint, flooring. I would love to hear peoples advice and what they look for when running numbers/buying a property. there are currently already tenants in the bigger unit paying 1000 on a month to month lease I might try and increase that. I know there was an issue with the roof but the insurance company took care of it.

Little about myself:

I am 18 years old and I am currently a senior in high school in Minnesota. I am planning on starting on buying my first property after high school. Right now I am currently researching and learning. I am reading BP everyday, listening to podcasts, and also reading books.

I am looking to make connections, and trying to find someone to help guide, and mentor me. I have great ambition and am willing to work and listen. Anything helps

If anyone knows of any meetings, or is willing to meet up for a little bit that would be awesome! Even just talking over email would be amazing anything helps. Thank you! Anything is appreciated.

I have a little bit stashed away to start investing but I am looking to do a mix of flipping and rentals. To start out I am looking to do a little house hacking to get some experience and feel the waters. After that my plan is to start building a portfolio of rentals and flipping.

@Tim Johnson I have worked at a meat market for a little over two years now and I will still be working there one day a week but I am now a cook at a restaurant. I got a little pay increase with a lot more opportunity for higher pay. I don’t plan on getting the house till after I graduate that will be 6+ months down the road.

@Nathan G. How would I be able too move out without refinancing the house if it's an FHA loan? I thought it had to be an investment loan if you weren't going to occupy it and have people live there. And thank you for the response!

@Tim Johnson I have a little over two years of employment right now but I just started a new job, will that effect anything?

@Stone Jin Thank you for your response, do you think this is a good way to get some experience under my belt?

I am 18 looking to buy my first house when I graduate high school. I have taken a couple steps working towards it such as reading books and wondering BP. I have a couple questions I haven’t been able to find answers to for awhile. 1. First one being when you’re house hacking, what does the loan look like? When I talked to a mortgage banker she explained to me that in order for me to rent the house out or flip a house I have to get a “investment loan” which has much higher rates. This makes sense to me but if I’m house hacking do I need to take the investment loan or could I do a conventional?

2. Also while talking to that banker she suggested that I live in a house for awhile to know what its like. She mentioned a loan that I would have to do zero down because I’m younger I could qualify for that. If I did this zero down loan could I refinance that loan in the future to a investment loan and rent the house out after awhile? Or even while I’m living there could I rent out a couple rooms with this zero down loan?

3. While house hacking or starting out how does the legal aspect of it work? I hear on the pod casts all the time that they are involving attorneys and creating contracts, while I’m starting out house hacking do I need to do this? If so how much and where do I find this?

Thank you for the help and the time!