All Forum Posts by: Dung Tran

Mmm, I'll contact the seller/agent and see if I can tour the area with a repairman to get an estimate.

I'm not quiet sure if I'm in a position to tackle such a project though.

So my criteria was essentially 3 bedrooms/1-2 bath that was about 100k so I could rent out two rooms and live in one of the rooms for free.

I found a small house (less then 1000sq ft) that is listed as a 2 bedroom/1 bath but has a den that can be converted into a 3rd bed room. It's actually listed under 100k.

It was recently renovated (flipped house) and the location of it is pretty decent considering the price. The only downfall, and probably the main reason why it hasn't been snatched up yet (houses lately have been selling like mad) is the roof. I have no idea the structure of it's roof but if you look at it, it has an obvious sag at two ends of the roof. It's a solid reason for me to send in a lower offer but the question is...is it worth it?

Absolutely no experience in construction but I'm assuming an obvious sag like that might mean a compromise in the support beams which would equal a costly fix. Something I would factor when putting in an offer but since it would be my first house should I just go for a less problematic house? I'm trying to keep in mind the time frame it would take to fix the structure of the roof.

So opt in minimum down payment <20% to avoid PMI> and go with 30 year Fixed? Since I wouldn't have to pay mortgage and use the income earned from my job for the next down payment?

Hmmm good point. I could potentially be on my 2nd or 3rd house by the time I save enough for an all cash deal.

Whelp, looks like I'm going to keep an eye out on listings then.

Marco Santarelli Wholesaling? Looks like something else to research =O I doubt I'll be able to sleep tonight now.

Jay Dao Thanks for the welcome! =D Honestly there is really only two areas I can find those houses for. Sac Arden Area and Franklin/Freeport area. Eldercreek/Fruitridge has houses under 100k but are too small. Not the best of neighborhoods but still workable.

ANISH TOLIA and Kelly N.
Ah I see. I'm actually very much leaning towards the 30 year mortgage myself since if I rent out the additional roams I technically wouldn't be paying the interest myself so cost factor wouldn't be such a big deal. It would just take a longer time for the house to officially be 100% mine.

The thing with the all cash deal would be the positive cash flow and also the fact that since I would 100% own the house I could take a home equity line <80%?> on the house for a second purchase right?

While the current housing market has taken a turn I have my doubts that the houses will go up too quickly especially since the job market still hasn't improved as much.

The fixed loan rate wouldn't effect my first real estate purchase if I go with the all cash route but I'd be hit with the higher APR for the second home though. But if I used the full home equity line as the down payment of the next purchase it has the potential on better investment returns? Or is there a wait time before I could do a home equity loan?

Hmm lots to consider and research.

Thanks for the Welcome Marco!

I've been passing the time reading up on the articles this site has and there is a lot to take in. I've been reading up on flipping houses although I'm not sure if that's for me. So much information, so little time.

For my first home I wanted to start small so my goal was 100k for a 3 bed/2 bath home so I can live there as my primary residence and be able to rent the other two rooms and essentially live without paying for mortgage out of pocket. Small chance of positive cash flow . It's doable but in my location homes in that budget aren't as plentiful as they would be in other cities/states.

My current situation is that I'm currently living with my parents so I can save up money for my first house. I'm currently in a position where I can comfortable pay a 20% deposit on the house and take a loan out for the rest. I'm currently debating on whether or not I should take a 15 year, 30 year loan, or just wait another 3 years so I would be in a position to buy a house all in cash

General estimation of a 30 year mortgage @4% APR would mean I'd have to pay around $57,500 in interest according to a basic mortgage calculator. There would be a small positive cash flow though. .
The pro to this is that I can get a house now-ish with possible positive cash flow.
The con is ultimately the total amount to be paid for the house

While a 15 year mortgage @4% APR would equal around $26,500 in interest. No positive cash flow, if anything I may have to pay out of pocket depending on tenants and rent. <$100-200 per month=(100x12)15=$18,000-(200x12)15=$36,000 >
The pro would be that I can get a house now-ish and could have the possibility of doing a home equity line earlier then the 30 year mortgage.
The con would have to be paying out of pocket with the mortgage.

If waited and paid all cash for a house I would guarantee a positive cash flow from renting out the other two rooms.
The pro would be the positive cash flow
The con would be having to live with my parents for another few years =(

There are pros and cons to each situation and I'm not even factoring other outside influences. Actually typing this out already has me leaning towards one way but I'm interested in the opinions of others about my situation?

Let me know if the way I format is confusing. I'm kind of new at this.

P.S. I know I use the word possible/possibility a lot but only to remind myself that nothing is guaranteed and life tends to throw a wrench to even the best laid out plans. ;D

Hi, Khang!

It's nice to meet you and thanks for the welcome! I can understand why. San Jose is a bit pricey for a beginner right?

Hi, my name is Dung Tran but I'll be honest I've been going by Tina since as long as I can remember. I'm 24 years old going on 25 this year (boy time flies). I'll be honest I have little knowledge about real estate but I am interested in learning. The only experience I have with real estate is that my parents own one and are looking to acquire another house (one to live in while renting out their first house). They unfortunately have bad timing and seem to always house hunt when there are more buyers then houses that fit their criteria/price range.

I essentially stumbled onto BiggerPockets when I was reading an article about screening tenants (kudos to Brandon Turner for the article and I forwarded my parents that article asap after reading it).

I'm currently living with the folks so I can save money and hopefully (fingers crossed!) land a more secure/better paying job. My original goal was to purchase a house for myself (100k area ideally) that have 3 bedrooms/2 bath so I can have a room to myself yet also have two rooms to rent out so I could potentially live mortgage free. In the mean time the money I would have spent on my mortgage would be put away for another down payment for another house. Depending on how I budget I could easily save up for a down payment on another house (similar price/criteria) in 3-5 years. Rinse and repeat but with better homes/neighborhoods.

If only real life would follow my goal guidelines. ;D
So anyone else in here from Sac area?