All Forum Posts by: Colin C leamy

Indeed. It would be a year or more before I attempted anything. This gives me time to learn. Also as luck would have it my parents just informed me they are good friends with a real estate agent, we are going out to lunch next week to discuss options, so that helps too. My uncle is experienced in building and renovating houses which is also a help.

I've been over that scenario. The numbers don't work. 

I have perfect credit. Personal track record is not a concern here. Their main concern is the rehab going sour.

Wow great info thanks! I like this idea a lot. 

Hmmmmm. How about if I used an FHA loan to live in the first house, this way I'm effectively paying the holding costs and the down payment. This gives me a year or so to rehab and minimizes the risk and involvement of my parents.

The issue here is finding a suitable house that is FHA approvable. Foreclosures need cash right? Hmmmmmmmmmm, there must be a way.

I wouldn't go buying a house for another year or so, which gives me plenty of time to learn.

The rehab costs are supposed to be factored into the initial loan is it not? I thought the only out of pocket costs are the down payment and the closing costs.

My income and savings don't allow me to get into real estate alone. I've been trying to find an "out" and I managed to get my parents to consider the prospect of lending me some help but they are the glass half empty kind of people that need heavy convincing.

My parents are pretty well off so if I can convince them to assist me in the right strategy I can use it to flip my life situation around.

Long story short, the mortgage I can afford is laughable. My credit is good but I just don't make enough money. I also have almost no W2 history (don't ask) so I'm not sure I can even get a mortgage to begin with.

I pitched to them that I would split the returns if they helped with the down payment and closing costs. This means In order for it to be worth it the deal would need to go into a property with some form of recyclable equity.

The BRRRR strategy is the first thing that comes to mind. They have done a few renovations in the past in the houses they lived in where the job lasted a lot longer and cost a lot more than they were told it would. They insist that the "rehab" part of the BRRRR is very risky because of this.

Do I have a counter argument for this? What kind of shape am I supposed to buy a BRRRR house in?

I don't have 100k for down payments. Getting 20k would be a bit of a miracle unto itself. Looks like this plan is not for me.

I just learned that PMI can be used to bring the down payment of a conventional loan from 20% to a far lower amount.

How low can it go? Can I have multiple PMI mortgages at one time?

Even if PMI reduced the ROI of turn key properties from $200 to $100 I would be satisfied if the down payment was low enough to allow repeatability.

What do you think of this strategy for my purposes? Am I too optimistic? Is there anything I'm missing?

So what your saying is learn a market, find a deal, and find an investor? Yeah maybe. Perhaps I should intern for a local investor to learn?

It's too bad FHA loans can only be used one at a time or turn key could be a practical option for me. 3.5% down payment every time? Damn that would be cool.