All Forum Posts by: Elizabeth Susan Ademi

Hey all. Can anyone connect me with a Property Management Company or a property manager within 20 miles of Tempe Arizona, please?

Thanks!! 

@Matt P.

What is a better scenario in your opinion: Continue to pay rent at 830+ a month OR buy a duplex, pay $500 to $600 to our own duplex's business savings account each month. After utilities, we are breaking even or in the minus a bit.

Regardless, we are paying $$ out. We'd like to pay $$ out to something that will support us through our life instead of just helping my landlord pay their mortgage. You know what I mean? But please, I opened this conversation so I can get different perspectives!

@Mike Roy Thanks for your response!!

Yeah, that Naturopathic Doctor salary sounds about right but we can go higher than that eventually ;) So to reconsider her dream-job would destroy her. We are determined to make this work! To mitigate a "poor financial" decision and to "become a slave to a dream-turned-nightmare" sounds like a really depressed and pessimistic approach.

 I'm interested Mike, what is your story with becoming a slave to debt?!

I think we are capable of living below our means for however long it takes to pay off the debt. We're open to sacrifices and limitations. Luckily for us our hobbies are free: hiking and birding! Also, we both have supportive, understanding and loving families.

@Theresa Harris So these are ROUGH estimates of the new loans. My wife has a friend who is graduating from University of Bridgeport with the N.D. degree and she is the one who gave us these numbers: $120,000 for the actual degree and $120,000 for the LIVING EXPENSES. $240,000 in total.

My take home last year was about $28,000. Current savings is $13,000. This savings we want to use for our house-hacking duplex. $9,000 for the down-payment and closing costs on a FHA loan and property no more than $200,000 and the $4,000 in holding costs in case the duplex craps out on us or vacancy becomes an issue.

@Angela Smith Hi Angela! Thanks for taking the time to respond. My wife already has $80,000 in student loan debt. The addition of $200,000 is an educated guess. We think we may need the $30,000 x 4 years = $120,000 plus, she will go to school for about the same amount = $120,000. The $80,000 plus $240,000 is around $300,000!! She chose N.D. school because it is her passion for life, don't ask me! :D I see what you mean with two jobs. Could cut or remove the additional living-loan completely. Must be true love if I married into this, HAHA! Thanks again for the two-job idea, I was hoping not to but realistically, it seems like a must when I look at these huge numbers.

@Bob Woelfel I think I left out the big idea: we will live in the other half of the duplex!!! This isn’t just an investment, this will also be our home. I am analyzing the duplexes as straightup investment properties though, just in case we do have to sell, we can sell quick. Also, if all goes well in time, we can rent out both sides eventually and move on to whatever else we want. 

@Nathan Rude So whatever business expenses that the rent from the other unit doesn’t cover, we will cover. For example, vacancy fees ($175), maintainence fees ($175) and cap. ex. ($200) fees straight into the business savings account each and every month. $550! So in a year we will have paid to the duplex $6,600. We do have a savings account specifically for three months of holding costs just in case. 

@Caleb Heimsoth So this is what BP calls a house hack. Buy a duplex and rent out the other half. 

Do you still recommend I dont buy a duplex?

Hello from Connecticut!

I have a hate-love relationship with Connecticut. I hate the state because it's WICKED expensive to live in. I love this state because it offers over 300+ bird species that migrate through! Yes, I'm an Audobon die-hard, so hello fellow birders and investors.

Here's why I am here at BP: 

My wife just got accepted to University of Bridgeport's Medical School!!!!!! Awesome, yes, she's going to be a Naturopathic Doctor, she's following her dream and is blazing a trail as she does it and inspiring other's too. But what about all this student loan debt though? AGH!!

We MUST have a solid financial plan in place now, because in four years ALL of her student loans will kick in 6-months after she gets her N.D. degree. All of her student loans. We're looking at over $300,000. We've deferred her undergraduate and graduate degree loans too. They're gonna kick in and they're gonna kick hard I'm afraid.

So while she is at school, we'll get a living loan at $15,000 2x's a year. That's $30,000. Her current job paid her take-home last year at $32,500. So we will be $2,500 short.

We will need more CASH for the next few years.

We will need A LOT MORE CASH IN FOUR YEARS!

Four-Year Plan:

Buy a Duplex that accepts FHA loan (no more than $200,000) in the New haven County because it's close to her school. Gives us 21 towns to look at. After all expenses, collect the $200 cash flow and put it in our savings account. $200 a month, multiplied by 12 months = $2,400

$2,400 multiplied by 4 years = $9,600

We can use the $9,600 to buy another duplex once she graduates and makes income again.

The goal is to use duplex income to pay off all of her student loans.

Our deal analysis is just like how BP teaches:

Cash flow has to be >$200 a unit after ALL expenses and Cash on Cash return has to be >12%

Expenses

-Principal & Interest

-Property Taxes

-PMI

-Home Insurance

-Water/Sewer

-Garbage

-Vacancy 5%-12%

-Repairs & Maintenance 5%-10%

-Capital Expenditures 5%-1-%

-Management fees 0% (I will manage all of our properties now & moving forward)

We are 3 weeks in on the Duplex search in New Haven we are learning QUICK that cash flow and a FHA loan do NOT get along. Very few duplexes accept FHA and when they do, they're out of our $200,000 budget cap.

We are hungry though, so we are hunting hard! We will find that perfect duplex, I just hope it falls from grace in time before her school starts in August. :)

Thanks all,

Elizabeth

I'm in the process of doing the same thing here in Connecticut. Great job finding a property at that price! Good luck to you.

@Stephanie P. Hey thanks for the response and insight. 

I’m not sure if HomePath.com is outdated or you have been misinformed?

Check out this link. To me this means a lender can approve a HomeReady mortgage as a multi-family. 

https://www.homepath.com/financing-special-offers.html

“Innovative underwriting flexibilities,including income from a rental unit or boarder, can help buyers qualify.”

🤷♀️

is BiggerPockets on AUDIBLES!? 

USDA rural loan, is this an option for a multi-family property? My goal is to not have to work an extra job to get us through medical school with our clothes still on our backs, lol.

I currently belong to American Eagle Financial* Credit Union.

I'm very interested in HUD and in HomeReady as they offer all kinds of benefits and upper-hands for our situation as owner occupants and first time home buyers!