All Forum Posts by: Taylor Dasch

I believe the gift is a check from a family member that the lender will allow you to have in your account as long as it doesnt have to be repaid. You would have to occupy the property if your using an FHA loan. It would also be tricky to split equity in a property unless it was being sold which wouldnt be feasible with an FHA loan unless your moving into the property. If you have the money for the downpayment, I would try and go much less than whatever you are approved for, and just purchase the property yourself. That would make the process much more simple for you. However I am not a lender and I'm sure there are some that can chime in with better ways to get your specific situation to work.

Great advice from Vik, I'll also add that the new construction homes in my market are just as competitive as the resale homes as they are taking multiple offers.  Depending on your goals, it does add a bit of risk to buy with negative cash flow, although investors are pretty much in agreement that inflation will keep causing prices to rise, you never know and if there were to be a dip in the market, you would need more reserves to be able to ride it out if your rent isnt even paying the mortgage.  If you buy a property that needs work you will at least have a back up plan of selling it and not losing anything if it were to drop. I do believe there are still properties that cash flow well in and around Austin so always be on the lookout!

Wow great mindset, you lost money on your first flip and your still getting after it! Personally, I think that the Wholesalers arent nearly as discounted as they used to be. I have found good deals on the MLS and good deals off market as well. It just depends on your knowledge of the specific market that you are buying in. I am in central TX and I'm very familiar with Temple, so I know what the ARV will be. The learning point for me for my first rental has been the repair/rehab costs. I went about 35% over-budget on my first rental, and still could Cash out refi and get 75% of my money back including the down payment. Had I done this in another market I would have not taken any risk as far as going over budget, then would be stuck with a sub-par deal because of doubts that i am going to lose money or get a bad renter, or whatever it may be so I dont go all in. This property is not a home run but will 100% get me closer to my goals. As far as tips and tricks, analyze deals every day on BP or Dealmachine. Join FB groups ("Investor Underground" in Central TX area) talk to people and let them know what your doing, you never know when someone may need to sell a property for whatever reason, read BP articles, listen to the podcasts, be patient with yourself, and write out a plan and back up plans to help you achieve whatever your end goal may be. Find a good REA in your area and let them know your goals and they may just come across something good on the MLS!

Wow man great goals! Your goals are set up to where even if you dont hit them or if it takes you longer, you will be wildly successful if you keep chasing them.  I just started using the "Full Focus Planner" it is wildly overpriced, however it is great for goals like this. You write your big goal, then work backwards and break it down into small daily habits that will help you hit your goals, It has a spot for a weekly, monthly, and quarterly review. You write down your 3 biggest daily tasks that will help you complete your goals every day. It sounds like your first step is going to be researching on where to even start.  It has been a while since I have read it but I think Gary Kellers Millionaire Real Estate Investor may be a good book for you to read.  Do what you can to get your name out there and tell people what you are doing. Try to add value to people for free and they will remember you. My goals arent as ambitious as yous so I am not able to really give you specifics but I'm sure the folks on this forum would be a great help to the steps you need to take to achieve that!

I have been asking myself this as well. First of all, it all depends on the market. It is still very possible to purchase a cash flowing property in my market as the rents have went up quite a bit. My theory is that investors realized/make a bet that inflation is going to keep causing the prices to go up, if they sit and wait for prices to drop their million is going to be worth 900k eventually.  This also causes the properties in the range for the first time home buyer to go up(I think they have similar criteria in terms of price/condition), but they dont care about cash flow so they buy it anyways.  I am still buying properties that cash flow extremely well here in Texas. 

Congrats on graduating! You are on the right path. I think the people who get into this forum and podcast prior to buying anything have a decent advantage as you know to house hack with a low down payment to start off, That puts you way ahead.  Good luck! I am a beginner as well, closing on my 4th property in March, but feel free to reach out if you ever need any help.

Be sure to get feedback from someone who is familiar with the market and has done what you plan to do. Dont expect a home run. You will gain a lot of knowledge/experience in just one deal, especially if it needs a lot of work.  Dont go too crazy over the budget just because it is your first one, after a certain point your return on investments will be nothing. The bathrooms and kitchen are the main things you should splurge on if any.  The more stuff you tear down, the more you will find wrong with the property!

Someone told me a while back on reddit that you must intend to move into the property. I am not sure if this is accurate to be honest though and I dont even know where to start looking. Like Benjamin said, its best to talk to your banker. I just got a conventional primary mortgage (10% down) and they wrote me a letter saying that they will be confirming that I am occupying the property periodically. Oh the woes of the Nomad method lol.  Either way, it is a great way to get started and get a hopefully lower interest rate!

Yes it is normal to shop around for and interview GCs. If your looking for a GC google reviews may be where you start.  If you know what needs to be done and have a good idea of what you would like, I think it is best and most cost efficient to go to FB. There are typically contractor pages that will be named "Austin Contractors"(Austins is "Contractor Underground").  Then go on and post what you need and where you need it. Typically people will post their work with their number, then you can get a couple quotes for each upgrade you make to your property.  

I am not familiar with your market, but being a class C neighborhood along with the 1 bd ( which is not a drawback in my opinion) I would go conservative and factor 15% vacancy rate depending on the condition of the property, I typically use 10%