All Forum Posts by: Brian Garrett

The short answer is these deals don't exist here in South Florida specifically Palm Beach County.

There are tons of us looking for the same type of properties and the market simply doesn't warrant them.

A 4 unit is valued based on comps like a single family home. 5+ units is when increasing the income raises the value of the property.

Under my profile picture it says "Top Subjects: Team and Taxes & Accounting" and I'm curious how BP determines this because I literally never post about any of those topics, lol.

Anyone else notice their "Top Subjects" are not really relevant to the content they post?

Here is the process that you are describing in detail:

https://www.biggerpockets.com/...

https://www.biggerpockets.com/...

The other way would be a commercial/portfolio loan but those will have slightly less favorable rates/terms.

Here in my area most HML's will fund 90% purchase and 100% rehab.

Some are even willing to fund 100% of the deal as long as the LTV doesn't exceed 70%.

I'd suggest you keep calling around and networking to find more HML's.

The way you worded the question is tricky.

Is the loan amount $800k or is the purchase price $800k?

If it's the loan amount then the loan itself would be $800k.

If it's the purchase price then the loan would be for $700k.

You should never disclose having $200k cash on a public forum especially when you mention that you are completely new. Be prepared to get a lot of colleague requests and inbox messages from people looking to sell you what they specialize in or people telling you how to spend your money on what's best for them rather than how to invest it in what's best for you. With that being said my advice would be to first ignore those colleague requests and messages and second to listen to all of the podcasts here on BP, read through all of the forum posts, attend some of the webinars and really learn about the various ways to invest in real estate. There is a wealth of knowledge here and virtually anything you can think of has already been addressed and discussed. Regarding what you should do with the money the best thing would be a small multifamily that you can house-hack and utilize low owner occupant financing for. A live-in flip is also another avenue that could be beneficial particularly living in LA where there's significant appreciation. It all depends on your goals. I suggested a multifamily house-hack because you mentioned wanting a portfolio of rental property so that's a great place to start.

Someone at those local banks and credit unions is giving you incorrect information.

You can buy investment properties with conventional loans it is done every single day.

I'd suggest talking to some other banks or lenders that have a better understanding of mortgages.

@Tyre Carmon No it's a capital gains exclusion for primary residences everywhere. If you're single you get up to $250k and if you're married you get up to $500k. 

Live in flips are a great strategy if you don't mind living in a construction zone.

Also if you live there for at least 2 years you get up to $500k profit tax free which is a nice benefit.