All Forum Posts by: Elenis Camargo

@Stevie Delacruz Yes I think house hacking would be great for you. For anyone actually. I'm dying to do it but I live in Brooklyn and it's extremely overpriced so I'm just investing out of state in Florida.

@Stevie Delacruz Amazing that you're already thinking about this at age 19!! It's never too young, I think. I'm 30 and wish I had thought of this sooner. Take a look at this article: https://www.biggerpockets.com/renewsblog/house-hacking-la-full-time-student/

@Daniel Tisdale I definitely would not do this. Funny this topic came up though. I started reading Brandon Turner's book today "The Book on Rental Property Investing" and he starts off the book talking about how appreciation or the long-term vision of selling for a much higher profit should be seen as the icing on top, not as the main reason for investing in a rental property. $400 per month is a significant loss on a rental. That's what I make now on my single family property and what many investors would love to make on each of their doors. Also, many investors are talking about the real estate market being at another peak right now, and the data says so as well. So imagine you buy this now then years down the road you can't even get your month back and have to sell at a loss or hold onto it even longer. This happened to many investors during the housing crisis and it can easily happen again. Either bring the price significantly down or walk away. Good luck!

@Omari Heflin Are you looking for a HELOC on the home you live in or for an investment property or another type of line of credit?

@David Simon I haven't tried using those sites for comps but I use Zillow and put "Recently sold" then play with the filters to get something close to the house I'm looking for. It always works for me. Maybe you won't find something in a few blocks radius but there should be at least a few that sold in the past few months in the area. If not, then I would try getting an average price per sqft and trying to come up with a number for the property you want to brrrr.

Hi @Johanna Castel. I had a hard time understanding this at first also. It means they will give you 90% of the value of the property, so you'll have to put in 10% or you'll have to get the property at 10% less than it's current value. Also the points, you'll have to put money for that. 2% of the purchase price I assume. The 8% rate sounds pretty standard from what I've seen. I started off looking for a no-money down solution as well but all hard money lenders seem to want something, which is understandable especially when it's our first time flipping. Hope this clears it up a bit and that it works out for you!

I intent to pay off each property I acquire. The rationale behind this is that I will have almost 100% of the rent as cashflow and the property should appreciate a good amount by that time. I can take out HELOCs or a portfolio loan once I have more equity in it. Or I can simply sell it and buy more properties. 

@Rivy S. There is a great point in what @Rae Copitka said about the pictures!! If you are trying to appeal to regular home buyers, the image is everything. Hire a professional to take and edit pictures. I had a PM take them for my rental and look how nice they look (link below). Your home is bigger and nicer on the outside than mine, but the pictures don't show it. It's true what you said about that the rates don't explain the lack of foot traffic coming to the property. It's all about the description and the images. Maybe also getting a new realtor.

https://www.zillow.com/homedetails/2333-University-Blvd-N-Jacksonville-FL-32211/44519902_zpid/

@Rivy S. Understood. I was looking at the rental comps in the area and they seem to be around $1500 for the same size house as yours. Lets say the buyer puts down 20%, their monthly payment at 10% interest would be $1,228 per month plus taxes, insurance and lawn maintenance if they don't do it themselves. So right there the terms won't work for an investor. You are solely relying on someone who wants to buy to live there and on top of that it has to be people with either bad credit that cannot get a house through traditional means. Many of those people do not know what owner financing is either. Even many realtors don't know what it is. 

What kind of feedback did you get from the potential buyers who came through? Were they looking to live there or investors? 

I would explain a little more in the description to show them what owner financing is. See if your realtor knows of any way to reach out to these buyers that cannot qualify for a conventional loan. They do exist, they are just a little harder to find I think.

@Rivy S. Does seem like a standard one. I've contacted a few about doing owner finance and they ask pretty much the same. The interest a little lower but still, you're not asking for 30% down like some ask.

Is there a reason you don't want to put a tenant and hold? Is it because you don't want to deal with managing a tenant or is it because you need the 10-20% down payment money? Are you also open to bank financed buyers or you're purely wanting to do owner financing? Asking all this to see if I can help come up with some ideas.