All Forum Posts by: Cody Steck

Welcome to the site!

That's awesome! Great job!

I am assuming this is rural consider that these lots would break down to about 3 acres/house. I am new to developing as a whole, what is the reasoning behind this? Why would the city keep the lots so big as opposed to say 2 or even 1 acre lots? (which is still quite a bit of land)

The only thing that makes sense in my head is if it is agricultural land or if the city plans to further subdivide each lot 30 years down the road?

@Andre T.

Since you have little debt and a decent chunk of savings, it should be fairly easy to get a loan on a property. I would recommend getting into an owner occupied duplex/tri/quad and go from there.

One thing you have to keep in mind is to look at it from the real estate agent's point of view. Setting up some automatic e-mails is pretty quick and hands off after it is set up. But you need to make sure you are 100% ready to take action if a deal comes up. 

Very few agents are going to want to show 20+ houses a week and then submit plenty of offers at 20-30% under asking price. 

That being said, possibly look for a new agent who possibly has some investing background so that he knows the numbers, market, costs, etc. A new agent looking for any kind of business they can get will be more likely to help you. Also make sure you are bringing value to them by being ready to buy a property should a great deal come up

Nice! What is your expected monthly rent?

Nice. I'd be interested to see how things turn out with your project. Why do you say you wouldn't do it as an agent? Too many hoops to jump through? @Quintin Mortensen 

Where in Salt Lake is the property? Look's like a good setup! Also, did you have a preapproval before making an offer through HUD?

I know most lenders in my area are looking for 12% with 2-3 points. I am sure your interest or points would be a little bit higher for the first few projects if you are new to flipping. 

Also, I believe most HM lenders here only loan 70-80% of the purchase price. That way if they have to take over the property they are able to still turn a profit and have some left over for the extra time/money they put into the project.

It's up to you though!

When they move the property from a liability to an asset they still count the PITI as debt though right?

Hypothetical: lets say you have a house that rents for $1200, 75% of that is $900. Then let's say that the PITI is $700. That only adds $200 of income to your DTI. I know that it will help but it seems so minimal that it will hardly make a difference?