All Forum Posts by: Disia Page

Heard of Project Destined??? 

"The mission of Project Destined is to transform minority youth into owners and stakeholders in the communities in which they live, work and play. With the careful guidance of its leadership team, Project Destined will produce the nation’s largest number of minority owners of real estate under the age of 18…one block at a time."  

People from the Harvard business school are teaching and mentoring kids on how to buy and own real estate. By the end of program they own a part of a building in their own community in which their profits go toward their college education. What a POWERFUL way to teach personal accountability and responsibility for one's destiny! Would love to hear an interview about this @Brandon Turner :)

When I heard about this organization, I thought it was a phenomenal idea and I had to share! http://projectdestined.com/

@Brandon Turnerundefined

I was told by a lender that I need to put 25% down for a 3-unit property in California because in this sector I'll be competing with investors who would be paying cash and flipping for a profit. Basically, he was discouraging me from trying to pursue properties of this size. Has anyone had any experience successfully utilizing an FHA loan for 2-4 unit properties?

I recently wrote a post about wanting to house hack in Socal to lower my living expenses and I received a lot of great feedback and advice. I am also just as interested in buy and hold investments in the Cleveland market to create some passive income, i.e. cash flow. I've been listening to some podcast and the path that some successful investors have pursued is to first lower their living expenses and save money, then pursue cash flowing strategies.

Here in Cali, I'd be using a FHA loan. Ideally, a 203K for a multifamily, but a SFR could still be a good personal investment.

In Cleveland, I'd apply the BRRRR strategy using a hard money lender for the purchase and a portfolio lender to refinance.

So, it seems I could do both at the same time, but most days my head is spinning just trying to focus on one or the other. In trying to stay focused on "one thing" should I first secure the real estate that allows me to save, then and only then, do I start to pursue obtaining out of state real estate???

@Lawrence Williams Thanks! As your response pointed out, an FHA loan would be possible with this example (I was considering the maximum for a 1-unit home, instead of a 2-unit)! If only the 2nd unit could support a rent payment in excess of $2500/month, this might be a good deal. The property that I was basing this example on, the 2nd unit was a 1 bed/1 bath. So, this is highly unlikely.

@Dan H. Mistakenly, I failed to mention that my goal for house hacking here in LA  is to significantly (30%-50%) reduce my living expenses, which I think is a reasonable goal for the market here and given the square footage I would need to live comfortably (I have 3 kids and 2 live at home). However, as most of you have pointed out, the numbers in this case example don't appear to work out, even for just lowering my living expenses. Seems I need to find a much cheaper property, as @Justin R. points out!

@David Weintraub and @Steve Babiak I wouldn't move into the property until after it was refinanced and the HML was paid back. @Steve Babiak I looked into a standard FHA 203K loan and the total financed loan would result in a monthly payment that makes a deal like this very uncomfortable for me (to say the least). This calculator I found was helpful: www.rehab203kloan.com.

Many thanks to all of you for offering your advice and input. The right deal will come along. I'm learning so much simply by asking myself, "how can I make this happen". 

@Justin R.Thank you for you input! So is my best bet to find something that would qualify for an FHA loan that wouldn't result in a high PITI? Or, like @Brent Coombs said, partner with someone? Although, I’m not sure how a partnership helps eliminate some of the risks that you mentioned. Do you consider house hacking in LA a daunting strategy all together or just primarily due to my circumstances? 

@Manolo D. 20% down (or more) is usually the requirement for a conventional loan, right?

This is what I want to do. I want to apply the BRRRR strategy to a house hack. A lot multifamily properties in Los Angeles exceed the FHA loan maximum criteria (no surprise). Right now, I do not have enough cash for 20% down required by a conventional loan. So, what I want to do is obtain a hard money loan to put in a cash offer on a duplex that is 700K. Rehab the property then rent it out 1 of the units and live in the other. Then refinance (with a porfolio lender) to pay back the hard money loan. And, of course, repeat. Is this doable?

Welcome @Gamaliel M.! I was checking out the Atlanta market as well and was surprised at the slim pickings as you noted. Are you interested in markets outside of Georgia? I'm new as well and seriously considering house hacking for my first deal here in California (wish me luck!), then grow from there. Stay connected! Good luck.

@Andrew Syrios Thank you! I am listening to episode #121, so that I can virtually get to know you (lol)! I love this website and this forum. 

@Jo-Ann Lapin Thank you! I'll check those clubs out! @Nabil Suleiman I've been to the Pasadena FIBI a couple of times last year! It was great.  I'm looking for that "right deal" now :)

@Grant Rothenburger I am interested in buy and hold for cash flow, and possibly house hacking (to reduce my living expenses), with the idea that I'd convert a garage into a mom-in-law suite.