All Forum Posts by: David Kramer

How much is the 104,000 amortized over and at what rate? You could buy the property "subject to" and then refinance into more favorable terms after the first year (a BRRR - Lite) type thing where you could give yourself even more margin on the monthly cashflow to extend whatever is left on the loan back out to 30. But as people pointed out, if the ARV is $140,000, you'll likely only be able to get a loan for 98k-105k (70-75% LTV on the refi) so you'll still be in the majority your money (6k min tax lien + rehab) - it would mainly be to stretch out payments longer. Just a thought.

As @Jonathan Bombaci said - getting creative is awesome, but on the first one sometimes something straightforward with as few moving parts as possible may be a better learning experience. 

Hey Ryan! Welcome to the BP Community - I did a house hack myself down the road in Pensacola. Let me know if you have any questions! 

Welcome Deja - the cash reserves you will want on hand will vary drastically with the property age/condition. For a property with relatively new mechanicals/roof somewhere in the 6 months of mortgage ballpark is a good place to start for a vacancy/repair budget. Once rented, you'll want to set aside a percentage each month for those expenses. Again, for a similarly well taken care of property around 22-25% of monthly rents works pretty well for a combined repair, CapEx, and vacancy budget. Again - these are just rough rules of thumb I use and you will need to adjust it for the condition of the place, average vacancies in your area, and the Capital Expenditures you see on the horizon.

If the mortgage can be assumed, you can buy it "Subject To" its current financing in which case you could get in with low/no money down. The Tax Lien is something you will want to talk to a local investor and/or real estate lawyer as each state has different rules on how those are handled and the implications involved. How strong is the 2bd rental market in your area? They aren't the most popular in many places, but if it works in the area you are in then it shouldn't be a deal killer. 

What does "minor updating" include? Sellers may have a vastly different definition than buyers on that one. 

Also - what price does the seller want? You mentioned what the seller bought it for and what the seller owes on it, but not what the seller would take for it. 

Welcome to BP @Austen Carroll - this is a solid place to learn about a ton of different financing and deal sourcing options that can be used! Spend some time on the forums, reading the books, listening to the podcasts, and talking with other investors and you will pick up a ton. I am in a similar position - active duty with two rentals at the moment looking to grow! 

Good luck! 

@Jake DeBoer - sorry I totally didn't see your question! It's in Wyoming!

It is a great option for a house hack! There are certain restrictions on the condition of the property, but a great option for starting out with investing! In most cases, you must be an owner-occupant purchaser to utilize the VA loan.

@Javier Melendez I would start here on the forums. Post in the New Member introduction thread and mention you are looking for a real estate agent in whatever FL city that you you decide on investing in. You’ll get a number of responses quickly. From there, you can call them up and get references and then decide who to go with. 

The Purchase Price matters as that is what will determine your Cap Rate, Total ROI, and Cash-On-Cash ROI. A buy and hold investor may even decide to neglect any appreciation when running the numbers in order to come up with a more conservative scenario. Also, as @Mike Dymski was saying, appreciation does matter to a Buy-And-Hold investor as they can access that increased property value through a cash-out refinance or HELOC.

@Javier Melendez - Welcome to BP! I am in the same boat as you! As a few of the above posters have mentioned, first determine where you guys want to invest! This could be where you already have a rental, where you have some family or friends that know neighborhoods, or just where the numbers look great. Next, get an agent - you can find a ton of good agents that work with investors here on BP. After you have an agent in place, you can get MLS automatic emails as soon as properties hit the market and the analysis fun begins! Get property manager recommendations from your agent, BP, and other investors in the area.

Let me know if you have any questions!