All Forum Posts by: Danni Catambay

@Paulina Lagudi

It's something I'm considering. How do you get the loan to cover rehab costs? Do I need to talk to an FHA specialist?

I've got a solid down payment, but with home prices so out of sync with incomes (my own included) in my area, my biggest obstacle is knowing what would be a good investment given the circumstances. There are lots of cottages (<900sqft, 1 or 2 beds) that just don't seem viable as rental investments, and a lot of decent homes (2-4 beds, 1000+sqft) that are $50K above what I can qualify for with a mortgage -- and that would only rent for .06-.08 of their purchase price. 

I'm willing to be *really* flexible with location, quality, whether or not I van-hack in my driveway -- I just don't wanna sit forever on my cash and never pull the trigger >.<*

Thanks everyone for the replies. What I'm gleaning is that creative renting to "force" a 1% rent is going to be my best bet. Luckily, I'm in an area full of hippies who would happily go for that kind of stuff. Unluckily, rent estimators don't give me those numbers, so I'd be on my own figuring them out. 

Re: the "work more/save more" responses. I understand that for most people that is a solution they haven't employed and that they come from a place of good intention. Without going into great detail:

A. I'm disabled and can't work full time+

B. I'm already at rock bottom spending -- house hacking is my only hope right now to lower my costs

So maybe a related question here (can post to a new thread if that's better): What kinds of deals that HAVEN'T made the 1% rule have people nonetheless made work?

Offer the number that you would be happy to buy it for (less a small negotiating margin) and see if the seller bites. Be prepared to walk away if not. Then, go find a better deal. 

Hi Aaron!

Thanks a bunch for the reply! I'm currently in a dorm that is $50/mo below what my hourly job can support as "affordable" (according to the "experts"). It took three weeks of searching and it's the best I could find. Getting into a property that I own and getting roommates is my strategy, but the market out here isn't giving me anything close to the 1% rule on MLS.

Basically, I'm trying to identify properties that are within what I can qualify for on a homeowner's mortgage (bank told me $170K) that will give me enough cash flow to have wiggle room to save up to buy another. 

My concern is that waiting for a 1% property in the market that I'm in will leave me waiting forever. And in the meantime my budget is so tight I worry that my savings could erode to the point that nothing is in my reach (irrational worry? Please tell me it is!)

Hi all,

New investor here looking to house hack a first investment property. I'm in western North Carolina which is a "hip" vacation and arts destination for many. Medium incomes are the low $30Ks, but median home prices are closer to $300k -- so a big disparity in income and home prices. Rents are also pretty high with centrally located one bedrooms going for $1000/mo and immediate suburbs going for around $650/room/month. 

My job is low income so I'm looking for properties that I can mortgage for under $800/mo (could stretch to $1000 if I had solid rental potential, but that's scary), but here's the deal: most properties for sale under $150K need massive structural repair that would kill the 1% rule.

So I'm wondering if anyone else has a good rule or advice for how to evaluate a property for its income generating potential in these circumstances. I'm ok with not hitting the 1% rule if I can house hack my way out of an apartment and generate some extra income. My concern is that with a low paying job, I don't want to cut things too close because then I will never be able to save enough for the next property. 

Thoughts? Advice? Links to relevant blog articles?

Thanks a bunch!

-Danni