All Forum Posts by: Cody Barna

@Patryk Prokopiuk it's an unfortunate situation but it's the reality of most markets right now, luckily you are unlike most buyers in the sense that you've run the numbers. Typically when you're willing to pay well above asking price the sellers are more likely to agree to your terms, however in this case their agent has told them how hot the market is and because how that there's plenty of buyers willing to pay top dollar no matter what repairs are needed. If I was in your position I would walk away from this deal and look at the $2-3k you spend as a learning lesson.

@Tony Gatto what approach have you used with the lenders you've spoken to?

@Steven B Skokandich no worries! That's definitely a great way to get started.

@Chase Burkett I don't see why you'd have an issue doing that, the biggest factor is the actual property you purchase. As long as you run the numbers correctly and leave room for additional expenses that will come up during the rehab, you should be able to successfully get your money out. At the end of the day it's hard to give you a definitive answer due to the amount of factors that could effect the outcome. I wish you the best of luck with everything!

@Ryan Rudy no worries, it sounds like you have a solid plan, good luck with everything!

@Joe Colmen that sounds like an interesting idea, I would definitely watch it!

@Ryan Rudy at the end of the day that's really going to come down to the sellers personal situation. For example if they're in a position of financial hardship and need to sell the property asap then an all cash offer for $20k below asking may sound very enticing. In comparison to the seller who isn't in a rush to sell and is set on getting their price. Full cash offers doesn't necessarily mean you're looking for a discount but it's a lot more common for an FHA buyer to pay at or well above the asking price. (This is all assuming you're looking to purchase a 1-4 unit property.)

@Steven B Skokandich Welcome! Here's an idea to consider assuming you have a decent amount of equity built up in your primary residence. You could pull that money out to use as a down payment on another property and rent your current home to a long term tenant. The same could also work if you didn't want to live in the new property and you just wanted to use the equity from your home as a down payment. Hope this helps, good luck with everything!

@Andrew Mac based on all of the info you've given, I would suggest holding into the property as a long term rental. Considering you purchased the home at what seems to be a perfect time, I can only imagine that over the next 10-20 years that property is going to appreciate very well.....the fact that it's California helps.

@Daniel Cejas I think you have the right idea, I would definitely hold onto your current residence and use that as a rental. Whether you want to pull the equity out is up to you, run the numbers both ways and see what makes sense. (keeping your current mortgage vs cash out refinancing) For your next home I would look at single families that have the option for an additional unit or a multi family that you could live in and rent out the other units. This will allow you to stretch the entire $60k rather than using all of it for a single down payment. However if you feel comfortable jumping into commercial or you can find a partner to help you with the process that may be a good option as well. If you decide to go that route I would still rent your current home and do a cash out refinance to use as a down payment for your next primary residence. (SF w/additonal unit or MFH)