All Forum Posts by: Felipe Ocampo

My dad is a handy man and he just helped me fix my unit for free(e.g. renovate an entire bath room, change the electrical outlet covers, fix falling tiles from the other bathroom). If he creates a bill of how much he would have charged a regular client, can I get that tax deduced? This is my first rental property! Thanks for the help.

@Margo JacobsWelcome to bigger pockets and good luck accomplishing your goals.

@Sherrie Kollins Here are some great books to get you started: http://www.biggerpockets.com/renewsblog/2013/04/14...

Also, remember to listen to the podcasts and the webinars. Hope that helps!

@Jordan Freeman Usually as an investor your credit score will need to be higher than if you were buying a primary residence(if you go the conventional mortgage route). Furthermore, if you get an FHA loan the credit score required is also typical lower(around 580) and you only need to put down 3.5%. Unfortunately, it is not all good news with FHA. You will need to pay PMI(Private Mortgage insurance) which will cut into your cash flow.

Getting your license would be a great learning experience but it could become expensive with all the yearly renewal fees(If you are planning to get access to the MLS).

I think you should keep doing what you are doing. Learn as much as you can, read, and listen to the podcasts. Also, try to find local REIA and get to know the members and network with people with your same goals. Hope that helps!

@Charles SawyerI am not really a flipper, but from what I have learned from being in bigger pockets, you should start by reading @J Scott's books: 

- "The book on flipping houses"

- "The book on estimating rehab costs"

Also, check out the podcasts that he has been a part of. Having a contractor check out every property and give you quotes would be great, but they will probably get tired of that very quickly. Try to learn and figure out how the pros are estimating these costs. Hope that helps!

@Jordan Freeman There are many people that would be great to have on your corner when dealing with real estate invesments: realtor, mortgage broker, cpa(knowledgeable in REI), lawyer(knowledgeable in REI), contractor, handyman, and so on. The list can go on and on. Even people close to you could be great to have on your corner since they can either help finance your projects or refer other people that can help you accomplish your goals.

Do you have a stable job with a good income? Even with a limited credit you might be able to qualify if your credit is good and you have a good income. Another way you could qualify for a conventional mortgage(without going the creative route) would be find a co-signer. You can find someone in your inner circle(family/friends) or find a partner for your investments. For other options(more creative), look into "The book on Real estate investing with low or no money down." Hope that helps!

@Morris Reichman Personally, I think that a cash on cash ROI of 10% is good. Not all investors will think that. It all depends on your perspective and what you are used to. For example, investors that are used to getting 20% cash on cash ROI in certain parts of the country will think this is a horrible deal, but those investing in the stock market(~7% historical ROI) or getting lower returns in other parts of the country will think it is a good deal. Where is the property located? What are investors getting for cash on cash ROI in that area? Did you take into account accurate numbers for cap ex, vacancies, repairs, and property management when you came up with the 10%ROI? Hope that helps!

@Casale Ian and @Gabriel G. welcome! I am also pretty new to bigger pockets, but it has definitely been a great resource. Good luck with your investments and overall learning!

@Tony Johnson like @StacyA McBain mentioned there are a lot of options out there. We need more information before we can help. Why are you not going the traditional route(conventional mortgage)? Do you have bad credit? No money for down payment? No W2 job? All of the above? If that is the case, you might want to read @Brandon Turner book: "The book on investing in real estate with no and low money down." It is definitely a good resource. Hope that helps!

@Mark Smith I completely agree with @JD Martin. A buyers agent will lookout for your best interest and save you a lot of work. Usually they have other relationships in place that can be very useful such as title companies, home inspectors, home lenders and so on that you can take advantage of since they are already in the business that you are trying to get into. The best part of it all is that you don't pay a cent since their fee is covered by the seller of the property. I think you should definitely reach out to a good agent(look at the reviews or ratings on pages such as zillow.com or just get a recommendation from someone you know). They can get you access to the MLS and get filters set up that will notify you when properties that fit your criteria become available. Good luck and I hope that helps!