All Forum Posts by: Elijah Rosett

Hey @Cole Durbano,

Congrats on the job offer and the big move coming up. As far as the home loan goes, there are a lot of factors that go into it. Typically an FHA loan requires at least 3.5% down. This is usually your best bet for a low downpayment, assuming you weren't military, and don't have a VA loan. That being said, there are often first-time homebuyer programs offered by states or by specific banks/lenders. There can sometimes wrap the downpayment into the rest of the loan, or into a second loan.

There are also other loans to look at, like the USDA loan. This loan gives 100% financing but is restricted to specific areas (urban) and has an income restriction as well. I would recommend reaching out to a lender in the Dallas area and asking what your options are. 

As far as fees go, usually, sellers pay the commissions to the real estate agents, and you as a buyer don't need to worry about that. That being said, there are still closing costs that will need to be paid for. I think 3-5% is a fair estimate to have for closing costs, especially in this market. I wish I could give you an exact number, but these costs vary on every transaction. 

Lots of great agents here! Any location you’re looking for specifically? Or are you pretty open to wherever a good deal is. I also saw your lender and contractor post. What type of loan are you looking to use? I can suggest a few good ones I’ve worked with in the past!

Hi @Jantz Meyer, First of all welcome to real estate investing! It’s a great, exciting place to be. As far as what avenue to take, the options are endless. The biggest question is what are you trying to accomplish? 

Are you trying to make extra cash every month? Are you trying to hedge your money against inflation while being in a high appreciation/equity market? Are you interested in long term or short term rentals? Do you have money on hand to invest, or do you need to do something more creative to get going?
My best suggestion is to pick where you want to go then work backwards from there. 
The BP forums is great, and you can find a ton of advice here. Congrats on taking your first step!!

@Chris Lo No one will care about your investment as much as you do. Of course, there are amazing PM companies out there. Once you expand enough or start investing out of state it becomes much more of a need aswell. But especially when you're starting out, I suggest self-managing. This lets you learn the business and will also help you identify a good PM from a bad. A bad PM who is overcharging you for everything because you don't know any better is a great way to ruin all your cash flow and turn you off from REI.

@Brent Fisher, I think @Seth Young is completely right about investing out of state. There can be a lot of pros to being in a more cash-flow-friendly market. Especially if you're trying to pick up cash flow for cheaper. Just keep in mind you will need to factor in management fees and have a good management company. This is no problem if they find you a good deal. It is still possible to self manage a property out of state aswell. Although, it can be a total headache. I self-managed a property in San Diego for a few years, and there were definitely some difficulties there. 

As you know, Utah is an amazing place to invest if you're after appreciation and equity. Cash flow is much more tight though, especially along the Wasatch Front. That being said it's hard to beat Utah's market at the moment... https://www.bankrate.com/mortg...

As far as your daughter goes, I love how creative you're being. It's very hard to give advice on something like that, but I would love to hear what you end up doing.

Also are you still up in Logan? I went to USU myself for their aviation program!

Great investment, Was it right next to USU? Finding a rental in Logan is brutal for like 90% of the year, I'm not surprised it went so well!

Awesome! Is the property in Hyrum? How well did using it as a STR work up there? Are you buying in the same area again, or elsewhere?

@Chloe Dawn Murphy Each of these cities is different. Is there a specific property you're talking about? If so, do you know what the zoning district for it is? Typically you won't have a problem with the city. What you need to look out for is if you have a small property with a million cars out front, then the neighbors start complaining. Sandy, for example, has zoning standards that usually go off the size of the lot. But as @David Avery mentioned, it's much easier to not get the city involved.

The specifics will vary, but it's typically transferred at closing. I would make sure to bring it up though, you don't want to have to track down the seller a year later if your tenants move out. The deposit is linked to the tenants and should be transferred from seller to buyer if the property is sold.

@Kerry Baird Awesome list, thank you!