All Forum Posts by: Gary J.

Michael Morris If I understand it correctly, putting 20% down allows you to avoid PMI premiums, which can make or break your cash flow in some circumstances. I am currently looking to do the same thing, and the PMI alone makes me want to wait to save more for 20% down payment. I am still learning about it too but that was one of my first questions about the FHA loans. If you COULD put down 20%, and still have extra for repairs/reserves, I would most definitely rather do that.

That trike looks like a lot of fun. Welcome to BP!

Just ore ordered my copy. Can't wait!

Jacob Brigandi Glad to hear you found a tenant base that is working for you. I am looking to buy a multifamily in the near future in the same area. I've seen a lot of listings pop up in Vernon for duplexes and such. How are the neighborhoods out there? I'm not very familiar with Vernon, is it similar to Manchester? I would rather buy/live in a nicer area than Hartford/Norwich/New London even if it means waiting longer to save more for the higher prices. How do you like it there?

Tyler Goulden I am interested in that strategy myself. The low down payment with the 203k loan is the main reason, allowing us to get started sooner. As it was pointed out to me by another BP member, the tricky part comes at the refi stage. I do not think there will be a problem moving out after refi, but the concern for me at this point is achieving the 75-80% LTV that almost banks refinance at. Since you are starting with a low down payment (3.5%), it may take longer to achieve the 75-80% LTV since you start out at 96.5%. You must get a great deal when you buy, and be confident in ARV. That is the tricky part. Seems as if all the stars must align for it to work in a year or two. I am not experienced with this, but I am just restating what another member told me when I asked a similar question. So if anyone has better insight, please correct me. It can be done, so it seems, just have to be careful.

@John Leavelle Thank you for taking the time to explain that to me. I have been questioning the plan myself, as it seems like a gamble hoping the ARV is appraised to my liking (or my numbers' liking). Especially as a newbie, I don't trust my own opinions about rough repair estimates and ARVs.

I have been practicing running the numbers on properties I find, but I have no idea how to estimate ARV. And the ARV is obviously quite a crucial part in achieving 70 or 75% LTV.

Aside from the BRRRR strategy, I have been running the numbers as if I were paying market value rent, to more accurately predict cash flow after I move out. I also plan on "paying myself" that rent every month as if I were a normal tenant, simply to get accustomed to the accounting/ managing of the numbers.

I do realize that I may have to live in my first property for a couple years, whether it is to pay down the mortgage to achieve 75% LTV, to acquire more savings from my full time job, or both. Whatever my situation is down the road, I want to be in the best position I could be.

Would you suggest looking for turn key properties for my house hack? It seems most multifamilies in my area can only cash flow under 120k, any higher and the rents need to be too high. That is why I wanted to 203k a ratty property. Perhaps this issue is more common than I think, but I am not sure. Any advice is appreciated. 

@Michael Noto Thank you for your open arms. I am very interested in learning more about the CT market. There is only so much data I can look at online on the subject, it is difficult to make sense of some of it. Definitely a motivated newbie, but I am not ready to execute my first deal yet. How early would you recommend contacting a REA? I've been under the assumption that I should wait until I am comfortable with the amount of capital I have. Any reason to start looking early? Also, being the investor friendly agent, do you typically find off market deals for potential investors? That seems to be the hot ticket. Unless Connecticut is vastly different from other markets. I can't find much local information besides numbers. Any sharing of local wisdom is very much appreciated!

Hello BP! My name is Gary. I have always had a dream of being a real estate investor, but until I started seriously looking into what it takes, I thought my goals were unattainable without massive cash reserves. After browsing bigger pockets forums and listening to the podcast for the last few months I realize that my dream is quite closer to me than I previously assumed. My craving for knowledge in this subject has yet to subside. I am interested in buy and hold investing, mainly for the monthly cash flow, but I am open to other REI techniques as well. My plan is to buy a multi family in my area using FHA or 203k, and live in one of the units while we (my girlfriend and I) become accustomed to the managing aspects/landlording. And when we are ready, execute the BRRRR strategy with plans to repeat as many times as we can. For now I am here to gain knowledge and possibly connect with people from my area. I will not be ready to find a deal for about a year (just signed new lease on my current living space), allowing me to save even more. Any local events, tips, or contacts are appreciated! Thanks- Gary

Hello BP! My name is Gary. I have always had a dream of being a real estate investor, but until I started seriously looking into what it takes, I thought my goals were unattainable without massive cash reserves. After browsing bigger pockets forums and listening to the podcast for the last few months I realize that my dream is quite closer to me than I previously assumed. My craving for knowledge in this subject has yet to subside. I am interested in buy and hold investing, mainly for the monthly cash flow, but I am open to other REI techniques as well. My plan is to buy a multi family in my area using FHA or 203k, and live in one of the units while we (my girlfriend and I) become accustomed to the managing aspects/landlording. And when we are ready, execute the BRRRR strategy with plans to repeat as many times as we can. For now I am here to gain knowledge and possibly connect with people from my area. I will not be ready to find a deal for about a year (just signed new lease on my current living space), allowing me to save even more. Any local events, tips, or contacts are appreciated! Thanks- Gary