All Forum Posts by: David Hobbs

Due to changing circumstances that I (should have but) didn't plan for, I have had to file Chapter 13 to keep my house.  The move has put me in a much more stable place financially but of course my credit score will take a hit for the duration. 

I would be interested to hear from anyone who has dealt with a similar situation and still moved forward with investing in real estate.

My current plan is to rent out the two empty rooms in my house while I do the rehab work to the rest of the house. By the end of the year, I'd like to have the whole house ready to rent (still continuing to rent the individual rooms) and make my next move, preferably to a multifamily (four-plex would be ideal) and repeat the process on that scale.

What kind of challenges should I expect along the way?

Mortgage is at 237k. Comps on newer houses in my area are running around 210. ARV for mine would probably be around 200 at this point, but that's up from 175 about 3 years ago. I want to make the smartest decision. I really appreciate the input from everyone. It has definitely given me some different perspectives.

There are lots of details..Highlights

Bought the house in 2007 - divorced in 2010. I was living on my own renting rooms and still paying mortgage per decree. Ex moved out and I took over sole ownership of the house. Now my teen daughter lives with me. Biggest issue is with the change in situation my monthly bills are beyond my current means. I have thought about renting out rooms but with a teen daughter it's tricky. Don't want to rent to guys and I don't think its likely that I'll get women renters.

I would like to keep it until it does appreciate to an equity point.  I thought renting it out would be the best way to do that and get started in the rental market. It is a 1957 Brick 4/2. Three BR downstairs and upstairs (walk up attic) finished into a mother-in-law suite. But most of the flooring, trim and wall coverings (especially upstairs) is very outdated. Also needs back door replaced and some widow panes are broken in the detached garage. I've got the mortgage at 3.75% (1350/mo) and should be able to rent for 1800 if it is spruced up. And you're right. I really don't want to get into more debt. It's definitely a quandary.

I want to put the house I'm living in up for rent. It needs repairs that I can't afford. Any suggestions on financing. Mortgage is underwater. I can do a lot of the work myself but I need materials.