All Forum Posts by: Jay J.

Welcome to BP @Priya Thomas !! You have already set yourself up for success by joining BiggerPockets!! This is really the premier place to start learning about RE and what it can do for you!

Its great to see another investor on the east side of Cincinnati! Loveland is a great neighborhood! I sent you a msg about some MF in your area !

1. First things first, learn the basics --> http://www.biggerpockets.com/starthere

2. Then, download the BiggerPockets Ultimate Beginner's Guide and start reading some more!!
The UBG will will walk through many of the key topics of real estate investing. Ask anyone here, its an invaluable resource. --> https://www.biggerpockets.com/real-estate-investin....
3. Once that's done, get to listening to the free BiggerPockets Podcast - A really great podcast with interviews and a ton of great advice. --> https://www.biggerpockets.com/renewsblog/category/....

and most importantly, POST YOUR QUESTIONS!!
..after all, that's what BP is for. Good Luck!

:-)

"Our only stable income is 35k/yr as my husband's fluctuates. We usually make around 50-60k a year but aren't able to save much due to the high cost of living here."

..I'd think the bank might ask how you came up with $400k when you only make $50/60k yr..  I mean, it would be hard to make a payment on such a large loan on that income.

@Benn Albrecht
Right, I'm not saying it wouldn't work. But on the back end of the brrrr, you need to refinance.. and that refi needs (ok, doesn't need, but) to fall inline with the requirements of whomever is giving you the new mortgage. When someone does the work themselves, its gives them a bigger profit margin to work with and adds flexibility at the end when its time to refi..

Back to the example.. if you can do the work for the $20k, you're fine. Because being all it at $95k, you can still refi and not pay pmi. ($95k is 75% of $125k) But if the $20k worth of actual product costs you $30k with a contractor, your all cost is $105k. Now your math doesn't work because $105k is +80% of $125k and you've gotta pay PMI. Not to mention it effects the rent math too..

So yea, the 203K is great and can totally work, (I'm trying to use one myself) but it just changes the math a little..  

That's all I'm saying..  

I'm curious on how the details of this type of loan would affect the BRRRR concept.

So, using ballpark numbers, for example; Buy a house for $75k, say it needs $20k in rehab and that gets you to a listing price of $125k. Your all in cost is $95k ($75+$20)

The brrr concept is that the individual does the work. So, you go to Home Depot and buy $3k in flooring and do it yourself. With the 203K, a contractor does the flooring and charges you $5/$6k, maybe more. So if the $3k in new flooring adds $8k to the value of the house. You only 'realize' $3/$4k because the contractor takes his/ her cut..  so then, the 'sweat equity' that you can put into the house is marginalized, right..?

That's in a pretty rough part of town...  is that Sect 8?  I assume you'll have PM??

I'm curious too as to why you can't get it funded though..  depending on your financial details, I know of a few people in the area that might be able to help..

shoot me a msg..

I guess I'm not sure what you're waiting for but...

"I put in a third, I get a third. whatever % I put in on the deals we do, I get that % of profit. No PM fees, no nothing."  <--No fee's or other misc payments to a private lender who will fund you...??

Can I get this guy's number..??

But seriously, take this guy/girl to dinner and make a deal man!!

Welcome to BP @Braighton Coey & @Tim Tritschler !!
You have already set yourself up for success by joining BiggerPockets!! This is really the premier place to start learning about RE and what it can do for you!

Its awesome to see so many new members from Cincinnati. it really is a great place to invest. Hit me up with any questions about the area. I'm not an expert, but I've amassed a large amount of research about the local area's...

1. First things first, brush up on the basics --> http://www.biggerpockets.com/starthere

2. Then, download the BiggerPockets Ultimate Beginner's Guide and start reading some more!!
The UBG will will walk through many of the key topics of real estate investing. Ask anyone here, its an invaluable resource. --> https://www.biggerpockets.com/real-estate-investin....

3. Once that's done, get to listening to the free BiggerPockets Podcast - A really great podcast with interviews and a ton of great advice. --> https://www.biggerpockets.com/renewsblog/category/....

and most importantly, POST YOUR QUESTIONS!!
..after all, that's what BP is for. Good Luck!

Oh please... The best thing for this country is for people to be educated, not armed.

..but anyway. Enjoy the day !!

I served four years in the USMC. I'm pretty comfortable with my weapon of choice...

Interesting 'thought experiment'..  say David was armed and shot (and killed) the man.

Who would actually do that? I mean, who trust their local cops enough to put themselves int that situation..   Maybe if your state has really pro-gun / anit-sqatter laws, but damn, I wouldn't risk that over some dude in my rental..  

That kind of stuff weighs heavy on the mind..  even if your in the 'right'..