All Forum Posts by: Account Closed

@Andrew Kewley The bigger pockets podcast #155 is a great resources for investing out of state! In the midwest properties can run in the 30k range, BIG difference from SD..So it might seem like cash flow is inevitable but I've heard that lots of the good cash flowing properties in these promising cities are picked over and the low priced houses are typically in bad areas of town. 

Sorry I can't be more help. I will say, you can probably cash flow in AZ that's where I'm starting out but it looks like the margins are slim with 1% deals in the Tempe area..maybe better margins in Mesa or the general Phx area.

Wow! Love the pictures added thanks for that. 

Congrats!

Hey @Lloyd Hardrick with 695, you will qualify for an FHA loan, its 3.5% down but they do have mortgage insurance until you have 20% equity in the property.

Let me know if you have any other questions!

Hey @Edgar Perez Just to note, I heard this from the most recent BP podcast - While the BRRRR method is awesome, it can be challenging because sometimes investors have trouble getting that refi. Make sure your dad is okay with this if you decide to go that route. If you can't refi, where does this put your investment with your dad. Also what are your goals with this property and long term investing portfolio? That loan from dad can go a lot farther leveraging it into multiple properties, while you could use the FHA to get in at 3.5% in a duplex. Even a FHA 203k loan will roll in the renovation costs into the loan!

Hey @Alex Manley Something I always keep in the back of my mind, is whats the incentive for the other parties I'm working with. With an agent (who doesn't specialize in REI), they want to get you into a home ..since they get a commission from the deal. I'm not in anyway saying this is dishonest or predatory. Most of the work agents do is bringing joy to people as they buy a home! But, as an investor especially in hot markets around the country, its hard to find those 2% deals on buy and holds, or valuable props for flippers (as a wholesaler). The deals a typical residential agent may bring you may not do well as an investment. That being said, agents who specialize in REI are a different story, but just wanted to add my 2 cents!

I would suggest reaching out to wholesalers who specialize in your area here on this forum and asking how you can add value. 

@Account Closed Thanks for the thorough response! I'm new to subject to deals but I'm always looking to learn. I appreciate that you are willing to work with new investors starting out. I'll send you a more detailed private message.

Dalton

@Account Closed When you say "all in writing" how official are we talking here? I've been considering reaching out to a few people in the AZ area (I'll be in Chandler starting in May) and am interested in the logistics of making sure both parties are protected going into a deal together. 

Would you recommend the way to build a strong partnership is to start on a relatively smaller deal and build that trust and dependability in a strong partnership? 

Thanks!

@Jay Hinrichs so knowledgeable! Awesome podcast for us newbies

The second paragraph about the 50% rule... Haha I'm having a ..."duh..why didn't I think of that" moment. 

That 50% rule might apply perfectly for C class neighborhoods with lower rent... it has to shift if rent is 2X ro 3X more!

Thanks @David Faulkner

You could turn your current property into a rental and then do an FHA on the new prop to take advantage of the 3.5% :)

or save and go with the conventional!