All Forum Posts by: Chris Allen

@Robb Werner Yeah, the properties I'm looking at right now aren't in that bad of shape, the worst ones just a lot of remodel. But I would have to go with an FHA loan since I only have 3.5% to put down.

Hey all, I just wanted to see what others recommend when starting out. I know that there are advantages to a 203(k) loan, including lower interest compared to hard money, and certain protections when it comes to refinancing to the borrower. I found a REO property that needs a lot of renovation, including foundation. I am pretty handy and have friends that can and want to help me with a rehab to gain experience, so I planed to save some money by doing some work on my own while living in it to save some money on hiring a contractor. If I use the 203(k) loan I can't do my own work on the money that I borrow but will have to use my own money to do my own work. What do yall think would be the best route to use for a newbie? Maybe use the 203(k) on my first property that I will live in then utilize hard money on others that I won't live in?

Sorry if this question is kinda all over the place and does not make a lot of sense. Any advice would be great!

Looking to buy my first property. Found a "multi-family" that is actually three houses on one 2.5 acre lot. Would a property like this still be considered a multi-family when financing with an FHA loan, and what are the dangers when looking at a property like this as a first deal? Thank you!

@Moises Rafael

I am definitely not the best qualified to answer this question and honestly, your best bet would be to talk to a professional about it, but I will give my opinion anyway and hope to see others give a better answer. First, is this your first property, what are your long term goals, are you going to be living in it, etc..?

1) If this is going to be a househack and is your first property to rent out, it would be cheaper and easier to just separate your personal account. When you start to get more properties, then you should create an LLC.

2) If this is not a househack and you have a couple of rentals already, it would probably benefit you more to go ahead and start doing business under an LLC that can give you a level of protection from your personal assets.

It cost a little money to set up an LLC but is relatively easy, so you should feasibly be able to set one up anytime. So you need to evaluate where you are at in your real estate journey, what your long and short term goals are, and should talk to a CPA or attorney about what makes more sense for your situation. Hope that I was able to help in some way!

Thank you @Jaysen Medhurst ; I have run a couple as BRRRR but not all because I wasn't sure if I was going to actually have to refinance. The 75-80% recommendation helps tremendously! I have been driving for dollars and looking at rentals and have found a couple but still no luck catching an interested party (still trying though). And those properties I have not seen! Definitely going to take a look! Thank you!

Hey there everyone, I am currently looking to buy my first house which will probably be a single family since I have not found any multi-family for sell. I want this property to be an investment and I plan to live in this property for a couple of years before moving out. I ultimately would like to keep it as a rental, but am also analyzing as a fix and flip. Any suggestions on if I still need to hold steadfast to the 70% rule if I plan to live in it for a few years but it may make sense as a rental even at a higher purchase price? Any advice would help. 

Awesome, I keep seeing the Rich dad poor dad pop up, definitely getting myself that for Christmas! Thanks for taking the time to give me some feedback, you have no idea how much I appreciate it. Also... I didn't even realize I didn't have a picture up, just so used to everything linking up with Facebook haha. 

Hey there everyone! So I am just now starting to learn about REI. I am currently a full time nurse but want to get involved in investing so that I can have a more secure future for myself and my future family. Some questions I have to start out would be

1) What are the first 3 books I should read?

2) Where is a good place to start? Wholesaling, rehabs, BRRRR, rental, etc... (I have looked to see if I could find a multi-family unit to house-hack, but haven't found one in my area yet).

3) At what point should I really look into doing my investing through a business entity?

4) What is some advice for someone starting out that has not yet had any experience with buying a house, working with realtors, title companies, attorneys, mortgages, or even real estate contracts of any kind?

I am only 23yo and have only been out of college for less than a year, so I don't really have any experience outside of college, work, and apartment renting.