All Forum Posts by: Chris R.

Travel RN Investor here in Albany, NY interested in a similar concept. I'd be interested in hearing your thoughts on what you've come up with at this point. I have a 4-plex and I would like to potentially market it as corporate furnished housing for medical professionals.

Chris

 My thoughts exactly. 

 Thank you for your reply, Dan. I've read a ton about the partnership aspect of things and I see the massive value in that approach. Right now I'm trying to get a few small MFRs to call my own (call it learning the business first before I get myself a partner). 

I guess I'm really trying to get a sense on the appropriateness of this in terms of appearing honest or dishonest to a bank. Credibility and a solid track record is paramount to who I am as I build my future in this real estate endeavour. Creative Fnancing is thrown around a lot and the whole concept of other people's money but blending that with a bank seems like an artform to maintain a professional practice and image.

If a bank would deny me based on a private money loan for a down payment, can I structure the private funds in such a way that gets ne what I want? Maybe a gift of some sort?

Hello all,

Today I ask a hypothetical question. If I had a private money lender finance me on a downpayment of say $50,000 at 6% with agreed upon repayment terms,

(1) How and what do I tell the bank about how I got that money?

(2) What does the lender have to do to document it on theiir end?

It may be a gross over simplification of a situation but it's a potential way for me to purchase a 2nd multi family.

Thank you!

i

Good morning,

I just got off the phone with my agent to discuss a property I found in my area. I just purchased a triplex and used FHA and now I'm left to be creative with the financing of my 2nd property i.e. I don't want to put 25% down. I asked him to find out if the property was owned free and clear because I wanted to offer the owner an opportunity to finance me without the bank.

My agent replied pretty quickly that seller financing was attractive back when interest rates were much higher but now since money is so cheap things are different. He sa8d beware of sellers interested in seller financing because it makes one wonder, "What are they hiding?" Can anyine shine some light on this thought? It seems like so many people, Brandon included, have used this strategy successfully. I don't know what I don't know and I am lookimg forward to your replies.

Thanks, as always!

 Dan,

This is so nice to hear. My rents are also under market by about $200 haven't been raised since 2008. All 3 tenants are month to month consisitent long term tenants. I fight with myself about raising the rents to the extent you did and I question true market value. I am on craigslist and other sites constabtly comparing similarly located and maintained properties. 

Thabks for your reply, 1,600/mo in cash flow is ridiculous. Congratulations.

Steve, I was driving around the neighborhoods I wanted to be in and saw for sale sign being put up. I didn't get out or say anything. I drove around the corner and contacted my agent. The listing had just went up on MLS.

We scheduled a showing the next day and I made an offer 2 days later after the selling agent provided all of the actual monthly expenses (utilities,taxes,rent rolls etc.) for my calculations. My agent said that 11 showings had been scheduled the day I made my offer and I knew I'd be up against the all cash guys. I wrote a personal letter to the seller explaining my intent and future goals. I think the genuine interest I showed made the difference. 

The neighbrhood is a historically Italian community of SFH, and without being overly stereotypical, the lawns are all mowed, there are gardens and window boxes and American flags on every little house - pride of ownership. I mentioned in my letter that I promise to continue that tradition, which is certainly true. Offer accepted.

Thank you all for your thoughtful posts. I recently purchased a triplex (closing target date 9/20/16) and I'll be living on 1 of the 3 floors with my girlfriend. So that essentially kills -$1,050/mo temporarily.

While we are occupying the property:

Effective Income (2/3 units): $1,932/mo

Total Operating Expenses: $1,128/mo

Net Effective Income: $804/mo

PITI: $1,145/mo

Cash Flow: ($-341) ..not bad considering I've been paying $1,100/mo in empty rent checks. I'll most certainly be forwarding my savings towards property #2. I can't wait to refinance out of FHA and get rid of PMI ($180/mo!)

When we leave, it's a different story: $600/mo in cash flow. It's a nice neighborhood on upper Western Ave. in the Buckingham/Crestwood area and it was a requirement that the neighborhood be safe enough for my theoretical children to live there. The downside is that the returns are a bit lower but overall I think it's a great first property. More details to come after closing!

Hey, Everyone.

I am curious to know how many folks have or had a positive cash flow while house hacking? I understand that deal analysis is based on a fully rented scenario but I am just interested in how many people actually achieve getting paid to live in their property.

Thanks!