All Forum Posts by: Dakota Rice

@Alex Roter

I spoke to a lot of lenders yesterday and most of them said the same thing; lesser of the two, max of 3% back at closing from the seller. I’m starting to think I’m being unrealistic looking for a lending product on the conventional or in-house side to fit my situation. I hate having to settle for a normal loan and leaving equity in the property, but we can always look at doing a heloc or something later on.

@Kevin Romines

We are hoping to pull some of that equity out in cash right off the bat to do repairs. Depending on the market and rates over the next two years we would consider refinancing and looking to buy another rental property or two. We believe we are going to have about 80-120k in equity before we rehab the place. I’m considering going the hard money route. It’s really hard to get my wife on board with that route, and there is the concern for how rates will look when we finish the rehab and will be ready refi. It will be mostly a live-in rehab, so I’m planning on it taking between 1.5-3 years.

I’m trying to find a lender that will lend based off appraised value. I’m under contract on a house right now that should appraise for much more then it’s under contract for.

Any recommendations?

@Jack Carda I would be interested in a year or so. I’ve volunteered for a lot of things in my personal life recently and don’t want to add anything else at the moment. I’d happily attend as my schedule allows, but I’d need to get through this year before committing to organizing and/or facilitating one.

@Mike Hern I’m not interested in assigning the deal. My wife and I are going to bring our first child home to this house. Worse case scenario we have to bring in a co-signer and refi out of it in 2 years after I rehab the place a little bit.

My wife and I have two duplexes that we have purchased through an agent. I recently grew a relationship with a local homeowner and was able to get his house under contract. He did not want to work with an agent and due to his current situation I have tried to do everything possible to make this a convenient sell for him. I have the property under contract for $235k and the bank did a refinance with him last year appraising the property (without going inside) at $325k. Being that I believe I’m getting a great deal in this current market my approach will remain to make this as easy as possible for him.

I have been self employed for about 7 months now. I figured lending wouldn’t be a little tricky now due to that, but we will have a full year of rental income on one of our duplex on our 2021 tax return. The other duplex is being house hacked and just got rehabbed and rented this last November. At this point I’m unsure how easy it is going to be for us to be approved for and owner occupied loan with our dti not looking as good with me being self employed recently. What are you’re guys thoughts/suggestions on getting lending?

Also, I’m going to order a survey and make sure I can get insurance on the property. I’m not going to do an inspection as I have a good idea from past inspections what they look for, along with my experience with remodeling. I’ve gone through the entire property with the seller and the issue/s with the house are the exact reasons he is selling and at this price. Im going to approach a local bank for financing after we do our taxes in a few weeks, and I’m assuming they will order the appraisal. I was planning on walking into the title company this week and seeing what they can assist me with in terms of the title being transferred and with closing. Is there anything else I need to be aware of and get lined up? Closing is scheduled for May 2nd, but I want to get have everything ready as soon as possible.

Thanks!

@Matthew Wolfskill

If you ever end up in rapid let me know. I don’t know of any meet ups, but I’d be willing to have lunch with you and talk real estate.

@Jessica Wygal

Yes I sure do. I shopped lenders and found that pretty much ever other lender then the three I previously talked to could do another property low DP if my DTI could handle it. My wife graduated may of 2020 and started working as a nurse in July. We waited a few more months and ended up closing on another house hack property dec 2020. We did 5% down and our first property pays for both mortgages and the utilities. I'm currently renovating the basement our new property to be able to rent it out and start saving up for the next property.

@Taylor L.

She is not prepared to put much work into a real estate portfolio due to so much of her time being focused toward her w-2 income. For that reason I was thinking of either going the index fund route or completely managed portfolio route. For her to live off $60k a year using the 4% rule she would need roughly $1.5million in 401k/index funds. The reason I suggested $600k being saved in the next 7 years is just because I don’t know exactly how dedicated she is to saving at least $100k a year of her income. Even with $600k though she is a ways away from that $1.5 million number. For that reason I was trying to think of the best way for her to either build a portfolio that could be managed, or invest in syndications/funds. I just wasn’t sure if someone had some great advice for someone seeking retirement late in life who makes a high income, but has relatively no time to deal with a portfolio.

Hey BP I have a scenario to throw at you and I’d love to hear your thoughts.

I have a friend in her late 40’s who has started focusing on preparing for retirement. With around 100k in a 401k and 75k in cash she is wondering what would be the best way to get to $5k a month in passive income/cash flow. She makes $250k a year, but enjoys spending money at the same time. She told me she would be able to save 100k a year of her income to put into either retirement accounts, or invest in real estate.

My question for you guys: What would you suggest she invest her money into to be able to produce $5k+ a month in 7-10 years? She does not need cash flow now, so would it be wise to put otherwise cash flowing rentals on short terms to pay them off quicker? Would throwing all her money into a fund be able to get her to the 5k a month with only $600,000ish total invested after 5 years? What are your thoughts?

Thanks!