All Forum Posts by: Cosme Escamilla

Hey @Cosme Escamilla, where in Michigan are you based?

 The market is way too competitive to flip without cash. You'll be priced out by those without the strings and cost of the cash almost immediately.

@Cosme Escamilla - If you have access to a 203K FHA loan, that is the best option for an owner occupied BRRR. You only have to bring around 3% of the money and the entire purchase price/renovation funds are covered by the loan hence you out of pocket costs are minimal. You also get more advantageous terms. As opposed to hard money, which comes with a ton of closing costs, more down and worse terms.

Additionally, if this is your first buy and hold, I recommend you choose a multifamily property that needs minor cosmetic upgrades and maybe 1 capex item. Ease yourself into investing with an easy project initially and slowly increase the complexity of the project. I'd hate to see you take on a huge value add for your first buy and hold and get in over your head. That is how I've built my portfolio, easy houseback / turnkey projects initially and I slowly increased the complexity as time when on. You lower your risk that way as you gain more experience. 

Hi @Cosme Escamilla

If you can qualify with a bank, that is going to be the best route for a buy and hold. However, if you don't qualify for whatever reason, then I would pursue a DSCR loan. As for flipping, you are better off in my opinion using a hard money loan, opposed to a 203k. It is vastly easier and the closing time frames are far more appealing to a seller, especially in a competitive market. Feel free to message me if you need some guidance and to see what options may be out there. Best of luck!

Welcome to BP!  There is so much information available here and so many are willing to help.  When you get stuck, reach out to your connections and ask for help!  Lte's connect!

Welcome to BP! Would love to connect.