All Forum Posts by: Dean Williams

Hello BP,

Can someone please recommend a hardworking and trustworthy contractor. The property is located in Virginia Beach , Virginia.

Also, how long would you expect these contractor work items to take to complete?

The property is 4bd 2.5ba 1900sqr ft.

1) LVP wood flooring and tiling

2) bathroom updating for 2.5 bathrooms

3) kitchen counter updates

4) ceiling painting

pictures are below.

Thank you!

Dean

Thank you @Erik Browning. I do need to see past the obstacles and it looks like I was given some bad advice on the VA loan earlier. I appreciate the direct advice! Would you recommend these ways or other ways I can put your advice in practice?

1) For starters, should I look at properties that aren't being bid on as much? 

2) I'll be more adamant about using the VA loan and reconsider who I'm getting advice on it from.

3) I'd rather not wait for interest rates to drop; instead is it a better idea to look for properties I can make lowball offers on with more success?

Thanks again!

@Caleb Brown, Thanks! I didn't mention I was considering using a VA loan to get 0% down. VA's not as attractive to sellers as other loans though; so I'm conservative about deciding to use it in this market in my area.

Hi everyone,

I'm a new investor looking to make my first purchase and trying to make sure my first move is properly driving toward my medium-term goal while using the principles of my long-term strategy.

Medium Term Goal:

1. Buy 3-4 properties in the next 2 years. By using a efficient combination of Investment fund spending and low-no-money down loans. 

1a) 1 SFR, then 3 MFRs after that. If SFRs are the only possible option, consider buying them instead for properties 2-4.

Principles of the long-term strategy:

1. Stretch my investment fund to buy as many good properties as it can buy

2. Use 0% down loans primarily for multifamily properties that can cashflow even with 0% down, high prices, and increased mortgage

3. use 0% down loans rarely for anything other than primary property type

4. Ideally save as much of the investment fund as possible for potential rehab and reno needs or emergencies.

5. Use investment fund for down payments when market conditions makes most good deals need it to make numbers work (up to 20% down).

6. Adjust mid-term goal as appropriate if good forward movement requires it, market conditions require it, and or personal situation requires it.

My Situation:

The market is hot. Market conditions have tripped principle #5. Low inventory. Bids are common. Interest rates are high. Prices aren't lowering because we're in a very desirable part of Virginia that's uniquely stabilized and protected from recession patterns. I've found a discounted SFR selling for $350 and in need of reno in an A+ neighborhood (very great area). The property would cashflow and have about a 13% Internal Rate of Return. The competition is likely going to force me to bid as high as $405k. That plus the potential $50k of rehab, 20% down, and closing costs is going to deplete my investment fund. I'll still have emergency funds for monthly expenses with vacancies; but principle 5 of my strategy will be compromised in exchange. I wanted to buy multi-families after this using 0% down, but I'm worried about losing my options to use down payments or rehab funds if needed.

Question:

Would you recommend going through on the bid? Or is it better to save the investment fund to use it on multiple properties instead?

Thanks!

Dean