All Forum Posts by: Eric McAvoy

@Doran Summers

Awesome!! I’ll search my local banks, credit unions, and online for that type of loan/lender.

Thanks!

Hey BP Team!

I’ve recently switched to a full time sales job that’s commission only. I know that without 2 years of I come history it’ll be near impossible to qualify for rental property mortgages.

Do any of you have any creative ways to get a mortgage on a completed BRRRR deal? I know I can get the downpayment and the hard money and also finance the rehab part. But once I've got a tenant in there I'm not 100% sure on how I'll refinance.

Any tips or advice would be awesome as far as what type of banks to contact or if there are companies out there that loan based on the rents and the property but not my Income.

Thanks!

Alrighty so here’s my situation,

I’ve got a new job and I’ll be moving to an area I’m familiar with because I went to school there a few years ago.

I’m currently house hacking a triplex with roommates and making $600/mo living here and it’s wonderful! The issue I have now is with the new job I want to house back again but I’m stuck between two options and I’d love your Input.

Option A: buy a 2-3 unit in a C class neighborhood and house hack that way

Option B: buy a single family with an in law suite and rent out the whole house in a B+ or A neighborhood.

The goal is to live in there for a year then repeat the process but I can't decide if buying the SFH is usually as good of an investment. I run the numbers and the cashflow would be pretty similar but I'm thinking the SFH will most likely see more appreciation in the long run than the multi family.

Also both options are around the same price point

Please ask any questions for more details if needed!

Thank you 🙌🏼

@Dan Heuschele

Yes that’s definitely very true. I know right off the bat it may need some repairs so I’m going to get a quote for those and see if I can either get a credit off the purchase price or try to get a 203k loan and roll the repairs Into a 30 year mortgage

@Marc Winter

25% down because it’s a multi family investment property. I haven’t found a lender yet that will allow less of a downpayment on this type of property

@Patrick Snyder

My fault, the monthly expense was PITI, not just P&I

Here are the details:

Tripled listed at 125k and I plan on offering 117.5k

P&I would be $570/mo

Rental income: $1675 from all 3 units

The issue is the 25% down. I don’t have 30k but I could get it from investors. I’m thinking of paying 10% interest on it over the next 36 months to fully pay it back. That’d be about $890/mo.

So $890+$570 is $1460. Then the left over $215 would be put aside for repairs and maintenance and vacancy.

basically, it will cashflow almost $1100/mo but not for 3 years until the investor is paid back.

With all that in mind, would this deal be something you all would recommend? Or should I move onto the next property?

Thanks for the help! 😁

I recently purchased a triplex and am house hacking it. One of the tenants had 1 dog when I bought it and 2 months later now has 4 dogs.

Apparently she was told that she didn’t have to pay the pet fee by her previous landlord and that it was crossed out in the lease agreement. On the actual lease agreement its not crossed out.

I don’t know if her previous landlord told her she actually didn’t have to pay or not. Am I allowed to tell her that I’m the new landlord in charge and that I’ll need the pet deposit? It’s listed as $200/pet so that’d be $800 from her. Or should I just let her use up the rest of her lease (another 4 months) and then be over it?

Edit: PITI on the house can range from $600-1500. I'm looking at multiple houses but only one duplex.