All Forum Posts by: Carter Mezzio

 Thanks for all the advice Marco! Will look into some calculators and to start modeling my investments more. 

Hello (again) BP community! I have been searching for my first rental property investment and, due to some financing troubles for my partner and myself, we had to reach out to local investors and inquire about seller financing. Thankfully, we have found some people and potential properties that could be seller financed to us and I just had a few questions I was hoping some people could help clarify on. 

I will use an example property at $75,000, 9%, amortized over 30 years with a current tenant rent at $1000/month:

• After running the numbers on what the mortgage payment would be for this property it came out to ~$600/month. Even with seller financing, does this not include taxes and insurance for the monthly payment on top of the $600/month?
• When my partner and I look to refinance this out in a year or two when we believe we will be able to qualify with a traditional mortgage lender, what costs do we pay for that refinance (i.e. closing costs, any other fees, etc.)
• Also, to add on to the refinance question, if we get it refinanced and an appraisal puts the value of the home below what we purchased at what happens then (if anything)?

I am especially new to the whole seller financing process and its pros and cons so any help with these questions would be very greatly appreciated!

Thanks for your time.

Hey Nicholas, thanks for the input! I have not been looking for too long per-say, roughly a month or so. My partner and myself are primarily looking at small multi properties unless we find a good cash-flowing rent by room situation. We are yet to be pre-approved fully for financing but are in talks with lendors and financial metrics seem to be pointing towards a good position.

I'm glad to hear your South Wedge property is doing well! That gives me confidence the area(s) nearby have potential too haha! My partner and myself are looking to get an FHA loan and a 30-year fixed mortgage so 3.5% down (ideally). We are still in the process of talking to lendors and figuring out exactly what rates we can get. I have also started exploring the idea of using the equity built from the first year as leverage into the next property's down payment as an option, though I will have to research and educate myself more on this.

Hey Tim, thanks for the reply! I have been looking mostly in the neighborhoods of South Wedge, Maplewood District, and Beechwood (where there seem to be the most multifamily properties listed). I have been looking at CoC and also NWROI, which accounts for rent savings as you touched on, and NWROI is much better after factoring in those sorts of gains/savings. It could be a matter of wanting too much, especially from the first property, though I also just want to make sure I can afford another property in a year or two.

Hello BiggerPockets community! I am posting a question to much more experienced investors today, as I am a newbie hoping to purchase my first property soon at the age of 20, about what strategy works best given my market. I live in Rochester, NY and currently it seems the market is inflated/expensive/high (one of those work right?!) and as such I am having a difficult time finding decent cash flowing properties, if any at all (most are CoC of < 5%). I know that patience is a virtue and I can make a deal out of something less desirable through some creativity but I was mostly wondering what I should be seeking out of properties with a market of this type.

On the one hand I have enough cash for a house hack using an FHA loan and some additional minor remodels/repairs to a property after purchasing. At the same time, a traditional house hack in my area that produce any sort of decent cash flow (as I eluded to) is looking extremely difficult to find. As Brandon Turner says I should probably just give up and go back to watching TV... not! I would just love to hear any insights on how to get creative or potential different strategies to the traditional house hack that others have used when buying rental properties in a rather expensive market cycle.

Thank you for your time!

Hello BiggerPockets community! I am writing this post today as a 20 year-old college student with a best friend and partner who is the same age looking to make our first house-hacking, multi-family home purchase by summer of this year. As we are deeply invested in this tremendous market of opportunity and our goal of financial freedom as early as possible I wanted to ask you talented, and experienced investors how to best look at this first property.

I know there are plenty of strategies to choose from whether it be BRRRR, house-hacking while trailer living, etc. but the key "issue" (if you can even call it that haha!) is whether to look at this first property from the cash-flow side of things or more so the equity-building side. I've heard that it is mostly about "getting your foot in the door" for this first property/start of process but cash flow is of course important in assessing the returns we get overtime. Any help regarding whether to be most concerned with equity-building or chasing a bit of cash flow would be greatly appreciated!

Thank you for your time.