All Forum Posts by: Cory Cox

@Sean Carroll I actually got it all figured out through my lender and am closing on my original date.  Took alot of going back and fourth but got it done.  Thanks for the help!

@Rachel Fazio thank you!  Yeah, I guess I'm just going to move my closing date back.  I would of obviously loved the free cash in a sense, but it's not worth all the trouble on the backend. Especially with me just starting out.

Thanks for all the help BP community!  First of many and can't wait to see what the future brings for me.

@Thomas S. I have a copy of the lease. What if I sent in something from the tenant saying they planned on moving out on Aug 15 which would then be within my 30 day period?  Am i just barking up a tree that I dont need to be testing with?  I mean if its a huge legal thing that would kill me its obviously not worth it but just trying to figure out something easy that would work.

@Thomas S. was just trying to keep every dollar i could if there is a way to arrange it is all.  Never stated it was necessary, just wanted.

@Bob Okenwa a couple people have told me that but the lender I'm working with is a personal friend and he has been way over the top in helping me through my first with probably the hundreds of questions I've asked so I would like to work with him.

Hey guys/gals,

I am under contract for my first house in Arkansas and have ran into some trouble with my financing that I hope someone can give me some ideas on what to do.  There is a tenant in the house now and his lease isn't done til the end of August.  I am planning to close on July 21st and was gonna assume landlord responsibilities til his lease ended then move in, rehab and live in for a year and then rent out after a year.  I am not putting 20% down on it, but because I plan on closing before 30 days of me being an owner occupant they are considering that an investment property.  I could possibly push my closing to Aug 2 but I dont want to lose the rent collected for those days inbetween because that will help with my rehab costs.

Any ideas of how to get around this would be greatly helpful...

@Samuel Bavido thank you for responding.  Yes, I do plan on using the buy/hold method with my properties, but for the reasoning is so I can get my cash flow up.  It's like a double edged sword I know because my ultimate goal would be being able to live off my rentals and doing that full-time. I'm in my late 20s now and yes I do make good money on my W2, but I also don't want to do this forever.  But, what I'm having trouble with understanding I guess is if I had more cash flow from my property then I could then inturn reinvest into another and still have a good "reserve" in place if any CapEX comes up.

I do plan on using the house hack technique with me being single/no kids so that will then give me a house a year, but I'd also love to be able to scale quickly and get another from sheer cash flow from my others and me being frugal with my money as well.

I guess what I'm getting at is I dont have to have X number of properties in my life and a huge number isnt a big deal with me. I'd just love to have the best bang for my buck and love to hear feedback on what direction to go.

Also, I STILL haven't got my sale approval yet on their side.  I'm +110 days into this process and the BPO got ordered about 2 weeks ago.  REALLY hoping I'm not wasting my time with all of this because my patience is beyond thin.  New process, first time buyer, etc its been long few months for me and hoping this all turns out great!

@Wayne Brooks Ok, now that you say that I do remember reading some threads about 80% on LTV. So basically, I would be stuck then for a for years on the HELOC strategy. You have any insight on the cash flow question? In my eyes, I would want the bigger cash flow per month and less to handle than the 3 bringing me the same end result?

Hey Guys/Gals,

I just currently got under contract for my first investment property which is a short sale. It has been EVERYTHING but short but I will spare my thoughts on the company that I am going through on that matter for another time (Day 97 and just started on my end). My question is this...I plan on living there for a year and then renting it out because I only had to put 3% down on the home (105k offer). I plan on going through with the house hacking technique but I'm wanting to scale my homes in a faster way, which makes me think about using the HELOC strategy as well. I figure I will get an appraisal of somewhere close to 130k on this type of home (about 6k in rehab that I will pay for in cash as soon as I close in the house). My cash flow prediction will be around 350/month. I am confused on a couple different things about my next play tho.

1. If I use the HELOC strategy and draw out around 25k for that, that will make my payment (I know it will be two separate payments) for that home to around an extra 250/month which will then make my cash flow to around 100/month at that point. Is that the best play to bring my cash flow down to that small of an amount? My lender told me the rule of thumb is $8-10 for every 1k.

2. If I use the 25k to then put 20% down on another home can I then use the HELOC strategy on that home also and in a sense keep getting my 25k out over and over again on the homes that I use? Which then in-turn makes that next rental home I have a very low cash flow at that point also.

3. If I kept going with this strategy would my DTI ratio be ALL out of whack out of just a couple deals? I have a full-time job right now making around 70k a year now and in a year and a half will be "topped out" and making around 100k at that point...just to add that extra background info if that helps.

I guess what I'm caught up on is the idea of yes, I understand letting leverage scale you faster and your tenants paying your mortgage down, but the fact of having to deal with 3 homes for example of cash flowing 100/month instead of just having the 1 making 350/month and it being an easier route in a sense for me headache wise.

I appreciate your feedback and thanks to this great community I have finally pulled the trigger on my first one!  Wanting to just set up a system that will work in the beginning so that I can then snowball into more and more assets.  Thanks again!

@William S.

Great post!  I am currently in the process of getting my first home as of right now (Day 92) which is a short sale.  I'm going with the house hack technique.  I'm going to have about 20-25k in instant equity from this deal. I keep going back and fourth (maybe because i dont fully understand) between just selling it and taking the profits or refinancing.  I obviously have no issue and actually want to start renting out a bunch of homes later on down the road, but money in key in the beginning.  If I could use that 25k to buy another home then I could double up and hopefully my house in a year will be somewhat the same again.  I was hoping you could elaborate on this for me a little if you could.

First post ever, and wanted to say yall rock!  So much information in here that I look at daily and the podcasts at the gym!

Much Love