All Forum Posts by: Daniel Claroni

@Joe Villeneuve what do you suggest for CoC ROI for new investors? I don't think 6% is horrible, especially since I'm not including debt pay down in that, but I'd like to hear what you think.

@Nick C. @Joseph Firmin

That makes sense. The specific property that I am looking at now seems like I would be able to get just under 6% CoC ROI with what I consider very conservative numbers. I think it would get closer to 7% if things went according to plan. Monthly cash flow would be just under $200 with conservative numbers.

My concern with what I called analysis paralysis is that in the market I am working in, the high ROI deals either don't exist or get snatched up way too fast, some that I have been looking into seriously have gone under contract in hours of going on the market. Maybe I need to switch to off market marketing campaigns or switch to a cooler market, but if I stay with on the market properties it seems that more seasoned investors (or retail buyers who don't care about the numbers as much) will be sweeping up all the good inventory.

For my first buy and hold property I am trying to find something with 6-8% cash on cash ROI. That seems like it should be fairly doable, but there are a lot of opportunities I've seen that would generate around 4-5% ROI. I'm wondering if I should be more flexible and consider some of the lower ones, since I have not even been taking into account the ROI from debt pay down in my calculations.

I really want to get started with something because I'm afraid I will get analysis paralysis if I shoot too high for my first property.

What are your thoughts? What would you recommend for a cash on cash ROI goal for a newbie's first property?

How easy is it to get rid of a bad stink in a house? What if it isn't as easy as replacing the carpets?

A house I am thinking about buying has a bad stink that smells like cat urine. The previous owner disclosed that dogs and cats were living with her, but the carpet is only a year old and looks and feels new.

I have heard it is very easy to get rid of a smell, but others say it can be very difficult. What exactly will I be looking at if it's not just replacing the carpet and airing out the house?

What will the costs look like for this? Depending on the cost, this may make or break the deal.

Thanks everyone!

Thanks everyone. I appreciate the answers. I'm going to look into buying it at action. I'm guessing it will be some time before that occurs though

@Shiloh Lundahl I'm just starting on my road to wealth, but the book The Millionaire Next Door has been a huge influence on my outlook on spending and budgeting. I would recommend it to anyone really serious about personal finance. There are some interesting statistics and analysis on exactly WHO most of the millionaire's in the US are (as of year 2000) and what they did to get there.

@Antonio Esquivel That is really helpful information - thanks.  

We were thinking of using cash (our own + private money) to fund BRRRRs but would probably go with conventional loans for house hacks.  I wonder if that changes the people's opinions.

Hi Everyone,

I've got a fairly specific question that I can't seem to find the answer to anywhere. Does anybody know if it is possible to buy an individual non-performing FHA note from Quicken Loans? If so, how can I go about starting that process?

Here is the scenario I am looking at:

- There are about $5k in tax liens on the property and about $5k in other liens

- The current owner has an FHA mortgage from Quicken Loans but has no money to pay the mortgage or liens.

- I don't know exactly how much is owed on the house, but I would think about $100k+. 

    - I think the property value is about $100k in its current condition, and the property is being short sailed

- Rent can be around $1200 to $1300 after repairs

- I'm not sure about repair costs yet, but will have a better idea soon (I've done my analysis assuming $20-$30k)

Does this situation even make sense for me to go in and buy the note if it is possible? I'm thinking yes because I think there is cash flow potential (~6% ROI) even if I just buy the property outright, but buying the note might offer a better deal. Then I would also have to go through foreclosure and encounter those costs. I am pretty new to this though so I'd love to hear your thoughts.

What are your thoughts?

Hi everyone! I’m looking for advice for a first-time investor in the Omaha area.

Our original plan was to start with house hacking a multifamily and then move on using the BRRRR strategy on single families. But now we're trying to decide if it'd make more sense for us to start with the BRRRR strategy on an investment property first and then look for a multifamily primary residence later given our situation and the market conditions.

We'd like to house hack a multifamily with a primary residence mortgage rate as our first investment. However, we currently live in VA and don't have jobs lined up in NE yet (so we can't get a primary residence loan in NE just yet). While we can get pre-approved for a loan in NE with our current jobs, the pre-approval is only good for 90 days and we won't be able to close until we can prove income in NE for it being our primary residence. Getting a pre-approval now would put us with the pre-approval expiring in May and us not being able to close until at least one of us has a job lined up. My fiancee's contract is over in June and our lease ends in July, so we think to make the house hacking work, we'd have to wait until at least the end of March (or whenever one person gets a job) to get pre-approved and start putting offers multifamilies.

Given that the Omaha market is pretty hot and there aren't too many multifamilies out there to start with, we're considering changing our strategy to start out using BRRRR on a single family investment property so we can get started earlier. Then we wouldn't have to worry about getting a primary residence mortgage until we move and should theoretically be able to refinance relatively easily since the market is hot. Thoughts?