All Forum Posts by: Damaso Bautista

@Sebastian Ferreira

I would suggest you learn how to analyze property values, rental markets and get a good grasp on the costs for rehabbing a property in those areas.  

After you can do this it will be easier for you to look at a property in a certain market determine what that property will rent for and then you can account for how much it will cost for the acquisition of the property, the rehab costs and then the rent you can get for it. 

With all this information in hand you can then make an informed decision about whether a property is worth buying for rental purposes.

There is no limit for rehabs because every situation and peoples ability to do the rehabs is different.  

Good luck!!!

@Daniel Villegas,

Brandon Turner made a couple of you tube videos explaining easy ways to analyze rental properties

1. Calculating numbers on a rental property using the four square method.  I like this process because you write it down and do the simple math yourself. This is great for beginners

2. How to analyze a rental property (the quick and dirty way)

Check these videos out and will have a good idea of how to analyze

@Jesse Krall

This doesn't seem impossible.  I have some questions? Do you have Zero savings meaning closing costs? Do you not qualify for both mortgages?  I am trying to understand what is impossible about it.  It looks like you have financing available to the only thing you would have to worry about is closing costs and qualifying for the second mortgage.  If both of these are good to go, then buying the next property should be pretty straight forward.

What makes this impossible?

@Renee Casey

Nice, if you don't mind I would like to know if you would share a copy of your 15 page move out packet.  I would probably use something like that.  You could PM it to me.  Thanks in advanced!!!!

@Rob Davis

I would pay for painting something like that because I feel like that is routine maintenance that needs to be done between tenants.

@Todd Llewellyn

Unless you are maxed out on DTI or will not qualify for another mortgage. It is pretty straight forward.

Get a cash out refi on your rental or primary for the down payment and closing costs for a new property.

Get pre-approved for a mortgage to know how much you can afford.

Go shopping and buy another rental property. 

It is as easy as that.  

@Shelby Willitts

Hey Shelby,

That is what we are doing now for our son in Bloomington, Indiana.  I just made sure that the numbers were the same as if I were to pay for his housing anyway.  This way in 3 more years when he is done, at minimum I was able to get free housing for four years if I decide to sell the property. 

I will also have to option to turn it into a student rental or a long term rental.  Either way it has worked great for me so far.

Good luck!!!

@Michelle Cardenas

Michelle, it is not only for first time home buyers but the program was designed to give a low down payment to owner occupied properties. 

So you are not going to be able to buy property for the purposes of renting and use an FHA loan.

@Michelle Cardenas,

Hey Michelle,

A requirement for FHA is that you must owner occupy the property. Since you are saying you are not going to live in it that means that you will have to go with a conventional mortgage which normally requires 25% down.

I know that is not what you wanted to hear but that is the fact.  

If you are dead set on that location, buy it FHA live in it for a year and then move out. That way you can take advantage of a low down payment FHA. This is the only way you are going to be able to do an FHA.

Good luck!!

@Manda Gouvion

Everyones plan is unique to each person.  Whatever it is I would just hope that you are making an educated decision about it.

I personally like 30 year mortgages because the it makes the payment lower and allows me to cash flow. 

If you can make the numbers work with a 15 year loan then that is your decision.  Making the numbers work is having everything covered by the rent.  (mortgage, taxes, insurance, cap ex, vacancy and repairs) If you can do this with a 15 year mortgage then good for you.   

I can guarantee you there are many different views on this but you need to do what makes you feel comfortable.

For. me as longs as my renters are paying for it thats all I really care about.  

Good luck!