All Forum Posts by: Derrick Reeves

Thanks for the advice @Annchen Knodt! Since creating this post, I have decided to open a LLC and seek advice from a real estate friendly CPA and Attorney in my area, before partnering and submitting an offer.

I found a deal on a HUD Foreclosure home that I want to buy and hold. This would be my first investment property. You can see my numbers below:

I can only spend roughly $6,000 out of pocket.. I have a great credit score and have already been pre-approved by a lender. This would be my first and only mortgage, so he said I could claim it as a primary residence and still rent it out. This would allow me to purchase the property closer to a 3% down payment. My only concern with this is liability. For this reason, I would prefer to put the property in a LLC, but I can't afford the 10% down payment, closing costs, and renovation costs by myself.

My question is, how do I finance this? 

1.) Do I claim it as a primary residence? If so, can I transfer it to a LLC in the near future and how would that affect my interest rate or loan structure.

2.) Do I create a LLC and partner with someone who can help with the renovation costs and split the cashflow?

3.) Are there some obvious creative financing options that I'm not thinking of that I can benefit from?

If possible, I would like to purchase the property as the sole owner and rent it out. I plan on doing the BRRRR strategy if this deal works out. 

Any help or recommendations are greatly appreciated, and please correct me if I am misinformed about any of my concerns. Thank you in advance for your time!

- Derrick Reeves

Thanks @Jaron Walling! I'll check out some local shops and see what I can find. I'm having my cabinet guy give me a bid as well.

Thanks Joseph, I'm looking for some storage space as well and it's a pretty wide area so I'll more than likely go with a custom build at this point.

Jaron, I agree with you. Thanks for the insight. I'll be living in this home for the next 3 years or so. I have two full bathrooms, so I have some flexibility with timing, as the master bathroom will be completed this week.

I am remodeling a home that has been completely gutted. I have been planning to buy a 72 inch wide double vanity and have budgeted about $1,500 for it. Today is the first day I actually measured my space and I'm just now realizing I only have 14 1/2 inches of depth to the door frame. Most of the 72 inch double vanities I am finding online are 20+ inches deep. I'm trying to avoid going custom and having to purchase granite, sinks, etc. all separately. Any recommendations are appreciated, thanks!

Awesome! Thanks guys, I appreciate the responses. I'll check it out.

I am new to real estate investing. I am currently a listing/marketing coordinator for a real estate team at Berkshire Hathaway in Baton Rouge, LA. I am familiar with the real estate market here and listen to BiggerPockets podcasts daily. I am currently helping a friend, who is also new to investing, flip a property to start building capital for future investment properties. Personally, I plan to start investing by the end of 2019.

With that being said, I have been looking for meetups in the area, unfortunately the closest meetups I have found are in New Orleans, LA. Just curious to know if there are any active investors in my area.