All Forum Posts by: Daniel Beckius

Ryan Luthi with Blue Door does specifically Residential Multifamily and has an awesome team.  He was the agent on my first duplex buy.  I'd give him a shout, tell him I sent you if you do. 

Hey Jackson!  I actually started my Real Estate career in MN.  What direction are you looking to go? Selling, Flipping, Short Term Rentals, Multifamily, etc?  

Networking is the best if you're getting your feet wet in the space.  I'd go on to meetup.com and find some real estate networking events.  

That's the problem with the housing market as a whole, especially the locations you would want to put your money in.  Of course you can go out of state and find a "good deal" but it seems you want the ability to touch feel and smell your investment.  

Alternatively I see a recession on the horizon Q4 22 or Q1-Q2 23; Record home price, inflation at an all time high, over $100 a barrel of oil, and unemployment at an all time low.  Keep an eye on the jobs report and when unemployment starts to go up you'll see these properties sit much longer and hopefully you can start beating sellers up on price.  In this case you're waiting. 

I'm not sure if this is an on market or off market deal.  The best way to find a deal is off market.  Investors like to sell to investors and they understand the numbers.  Your offer is based on the return not necessarily what the neighbor sold for.  Many don't even want to list, but when it hits the market you get owner occupied buyer competition who don't look at the numbers other than the ability to cover their mortgage.  

Lastly, you know the market you're buying in.  Whats the average price / door or average sale price of comparable properties.  If you see properties selling for the same return you're getting then either, stick with it, or work with your agent to find an off market deal.  

I share a short term rental in MN with a close friend.  We don't have anything in writing but we have the same understanding.  Not only holidays but also major events in the area are off limits.  

We run the dates by each other before we make a plan of it.  I'm sure it's possible to get this in writing but you should look at all factors because of the events factor can net you more than the holidays can.  

@Michael Weis you're looking at the numbers deeper than most do.  Most look at the current figures and don't take into account all the deferred maintenance which includes deficiencies. 

"Look down the road" is a broad statement, but that is exactly what you're doing.  

1. Updates to bring up rents (vacancies and the cost of the reno)

2. Updating the major mechanicals

3. Market Appreciation or Depreciation (consider what the value of the property will be in a year from now)

4. How often these come available.

What upside will the property bring you in the future?  Large lot, location, new businesses in the area, etc.  Assuming you're not interested because it's the only one, take a hard look as to why you're still considering the property.  You can listen to a pro but it sounds like you are a pro.  

@Jackson Smith! 

First property you can utilize Max Financing which would be 3%, 5% down conventional or 3.5% down FHA.

After a few years you can buy a 2nd property with either FHA (if you didn't use your FHA loan) or Conv 5% down. Easy to underwrite when you got from a duplex to a single family.

Then you can buy second homes for 10%-15% down but it has to be somewhat of a distance away. 

Also, if you have a girlfriend, fiance (not married) you can use them for max financing as well, separate to yours. 

If you have a lease agreement on your past residences the lender will use 70% of the gross income from the lease you provide towards your income.  

Not really...  The appraiser is going further than you'd typically see..   If the egress didn't meet your cities code for egress the appraiser could do the crazy extra due diligence to verify it is or is not to code...  One less bedroom would impact your appraisal.  

Hey @Vance Payne!  My cleaner is booked solid yet I did find her on turnover bnb a few years ago.  If you haven't yet i'd jump on turnoverbnb and you can easily put out an ad. 

Pros/Cons to HELOC - Pros are fast money and you're not refinancing your current loan..  HELOCs offer flexibility because you can borrow against your credit line at any time.  - I'd vote this over a Cashout

Con: you have a draw period and it is only interest no principal payments at the beginning.  It's also a little harder to get approved for this 43% or lower dti ratio.   

Does taking out a HELOC affect your DTI ratio/credit score drastically? Yes it will affect your DTI but not so much your credit score yet it is a hard pull. 
Are all HELOCs variable interest rates? Any recommendations for banks/credit unions in the greater Denver Area that make the HELOC experience seamless? Yes, they are all variable rates...

Pros/Cons to Cash-Out Refi -  Pros principal payed loan and a fixed rate - so predictable monthly payments.  

Cons - Add years to your loan, new interest rate, larger mortgage, more paperwork.   

What kind of sneaky fees are associated with a refinance? What kind of taxes, if any, are incurred? There are more fees associated with cashout refinances.  

I've had friends explain this strategy as basically "starting over" paying off your mortgage... Since we've only been making mortgage payments for 7 months, this doesn't seem like a huge barrier for me.

Here's an loan product that I just started researching.  It's called an All in one loan.  They came out around 2005-6 when the market collapsed and lenders never ended up utilizing the product so it basically disappeared.  It's a very interesting product where you can access your equity at any point rather than refinancing or doing a heloc.  You literally can use your home as a bank.  From my research there are significantly larger principal payments vs larger interest payments.  

99% of lenders that I know do not sell this loan so you won't be able to get clear answers from any lender. 

Good morning Max!  Depending on the proximity from your primary residence...  Second Home Mortgage - 10% down - assuming you intend to use it as a crash pad at some point.