All Forum Posts by: Forrest King

Hello my BiggerPockets family! I closed on a sfr fixer in Bellingham, WA this week! The plan is to live in while we rehab the house. Budget is not huge. Planning to turn around in next 6 months for a flip. I'm taking advantage of the Restore, Habitat stores, and of course there's Craigslist, home depot and Lowes. What are some local options? I am new to town, looking for some trustworthy handymen for help and a general contractor for guidance on some bigger fixes. Any advice, referrals or recommendations are greatly appreciated :) Thanks!

When I rented my house, then moved across the country and then they stopped paying :/ 4 month eviction and had to sell the house!

How was it?

I think you should talk to more brokers, banks and mortgage companies.

I've lived in my SFR for 8 years. I just took out a Heloc to cover the down payment and closing costs on a 4-plex I'm going to owner occupy with a 3.5% down FHA.

I talked to 12 different banks, credit unions and mortgage companies before I found one who I jived with, at the recommendation of a fellow investor.

They want a signed rental agreement on my SFR before closing on the 4-plex, and a letter explaining why I'm downsizing.

Not one has suggested I sell my SFR.

Congrats!

I was in the process of getting a Heloc on my home, and then owner occupy a 4-plex. Everything seemed to be going great but then they decided last minute that my house was not in good enough shape and requested a full appraisal :/ I'm thinking I just have to keep shopping around!

Welcome! Hope to see you at the next meet up in Cheyenne!

I'm sure I'm not the only one using some self-help tips to be more successful.

Today I did something very fun that really got me extremely motivated to commit and take action on my real estate investing goals and dreams.

If you have ever been stuck or fearful to move forward, every other guru you meet will tell you to visualize your goals as complete, everyday. The promise is if you do too his you will activate your subconscious to find a way to make your visualizations a reality.

I took this a step further today while I was on a walk. I took out my phone and pretended I was talking to a potential investment partner and I explained to him the vast portfolio of various real estate investments I owned outright or with partners. I was also walking through a multi-family neighborhood. As I told my imaginary friend the details of my growing cashflow, rehabing large apartment buildings and cashing out the equity, my personal investment team as well as my board of directors for my more elaborate deals... on and on I went, all while imagining I was walking through one of the many neighborhoods I own.

This really got me invigorated, and it felt real! I'm in the process of aquiring my first 4plex, and this little excercise has me pumped to work on my next deal.

I'm going to take this a step further and have as real friend call me and ask me questions about my success, as if has already happened... I have a feeling I'll be actualizing my goals in record time if I keep myself highly energized and motivated to succeed.

How do you get/stay motivated, and laser focused on your goals?

Greg, Thanks for the input! I also posed the question to my realtor (who owns several of his own properties) and I have investor friends in my market. If I get some clearer answers I'll share :)

I have a house (1600 sq ft, 3 bed 1 bath on slab) I paid 105k for. It was a d- in a nice neighborhood, comps in the high 100's and low 200's. In 2008 it appraised for 135k, now worth 146k as is. 

It's a Frankenstein/Goodyear house with old metal siding with a mix of cedar shake and old wood windows from the 50's. 

I got a good estimate to replace 9 windows and 6000sq ft of vinyl siding for just under 20k (I've been quoted 12k-14k for just windows in the past) 

 I'm wondering if this would create enough equity to make it worth it in the short term. I'm planning on a cash out refinance once I'm done rehabbing, then renting it. I have a 20k line of credit against the house currently which I'm using to aquire a 4-plex, and I'm hoping to get another 4plex once I refinance the house. 

 Thank you for your input!

Originally posted by @Jeff F.:

hi @forrest 

Welcome do you have something undenor contract? I just closed on a 4 unit in Cheyenne last week. 

Are you owner occupying the property? If not, how are you doing only 10% down 

 Hi Jeff,

Congrats on getting your property. How much have you done in Cheyenne?

It was my understanding if I do owner occupied I can get away with 5% down, 10% on a 4 plex or smaller, and 20% if it's more than 4 units or I already have 4 conventional loans.

Am I wrong? 

I do want to do owner occupied on my second deal, but I'm in the middle of an extensive remodel on my house trying to get it "rent ready" plus my home mortgage requires me to keep it my primary residence, so I would have to sell or refinance before doing owner occupied. At least I'm pretty sure!