All Forum Posts by: Destry B.

Hey BP!

Generally speaking, I want to get an idea on the different ways to structure financing for a particular scenario. What would financing look like for the following plan:

YR 1: FTHB buys a duplex as owner occupied.

YR 2: Same buyer buys a 4 unit property and moves from the duplex to the 4 unit.

*If YR 1 purchase was done with 3.5% down FHA loan, what impact would that have on purchasing the YR 2 property.

Thanks

1 Vote

Originally posted by @K F.:

@Destry Brink nice! We were in Waite Park and loved it. For advice, I would say pick tenants you would like to live next to. Make sure and ask questions not only about finances and logistical things, but ask them more about their lifestyle. That being said, it is important to find that balance between being friends and doing business. This was the hardest part for us!

There’s so much more I could say! What is your long term plan? Do you want to keep it as an investment property after you house hack?

Thank you, that helps. Was there any 1 or 2 two things you learned the hard way or wished you did differently?

Yes, that is the plan at the moment; keep building the portfolio. What did you end up doing with that property?

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Originally posted by @K F.:

Hi Destry,

Going along with what everyone else has said, I think you can start looking any time. Getting set up on an MLS search would be nice for you to get an idea of what is out there and what types of properties you are liking. Also speaking with a lender is important to know your budget, which can sometimes be higher when looking at multifamily properties, but speak with a lender to know for sure! My husband and I house-hacked in NE Minneapolis from 2018-2020. If you want to chat we would love to meet up with you sometime.

What areas are you looking at?

Love NE area and have friends there. I like seeing where the property is located and then filter for characteristics. I’m still working remote so we have flexibility. I’m thinking that will continue long-term. What advice would you give based on that experience from 2018-2020?

0 Votes

Updating w/ some info due to my newbie mistake of not providing a more detailed picture of our scenario:

Looking in TC area, I haven’t nailed down an exact city/neighborhood (a lot of good ones), but we do know where we don’t want to be. We seem to like Columbia Hts, N. St. Paul/Little Canada/Roseville.

Purchase timeline is set around Summer 2022 and could do sooner but w/ current lease would prefer not too. Also starting to see price drops on Realtor.com for the first time in awhile.

All financing aspects are taken care of.

Don’t intend to spend more than 400k.

I can go conventional w/ 20% down but since reading Vol. 1 TMM & listening to BP podcasts, I've kicked around the idea of conserving reserves and doing 3.5% FHA, since the second investment 1-2 yrs later will require more than 3.5%. 🤷🏻‍♂️

3 Votes

I have the same question! Following to see replies 👀

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Greetings BP!

New member and first time posting in the forum. Great late-night reading btw. I was curious when a good time would be to start looking at properties? My wife and I plan to purchase Summer of 2022 and house-hack a 2-4 unit property (first one).

Thank You,

2 Votes

All Forum Posts by: Destry B.

Destry B. has started 3 posts and replied 8 times.

Post: Is an LLC the best option?

Post: FTHB | Owner-Occupied | MF Property | Sole Member LLC Financing ?

Post: Finance Strategies for 2 yr Stack Plan

Post: First Purchase Timeline

Post: First Purchase Timeline

Post: First Purchase Timeline

Post: House Title for LLC Creation

Post: First Purchase Timeline