All Forum Posts by: Geordy Rostad

Hi @Account Closed

Let me start this thread with a must read that is not real estate focused but is probably exactly what you need right now:

Financial Freedom by Grant Sabatier

@Dale Holder

If I could go back and time and do it over, I would have purchased and moved into a 2-4 unit property and used the advantages of owner-occupancy to make the deal work. I didn't realize I could use the rental income to juice my DTI and qualify for a more expensive property. When I bought my little house for $200k, I probably could have bought a 4-plex for $300k instead.

Life would be different now. Sounds like you are standing face to face with a similar opportunity. Maybe look for a house with a second kitchen at least?

Perhaps look for something with seller financing?

How short of 2 years work history are you? There's no shame in saving up more money to put down and waiting a bit until it's easier to qualify.

Lease options can be hard to convert to purchases sometimes but I've seen it done.

@Ashutosh Koshe

I hired an attorney in Bellevue to form an LLC for me. He charged $800. He also acts as our registered agent for $100/yr so he gets to receive all our junk mail that gets spammed to business owners.

It sounds like a lot of money but he sat with my wife and I for an hour answering all of our questions, setting expectations, and most importantly, showing us exactly how to sign documents and properly use the LLC without piercing our corporate protection. After doing one with an attorney, many people do the subsequent ones on their own.

It was well worth it for us.

@Jacob Villalobos

Have you checked the smallest of banks such as locals with only a few branches and credit unions? Those are the "magic banks" because they do a much higher percentage of portfolio loans so they can make their own rules.

Maybe start with Bank of Whittier? I checked their website, they look totally old school. Might be just the right sort of place.

@Tyler Worth

Maybe snag an AirBnB out this way, stay for a week or two, work in the Shoreline office and then hopefully you'd be able to go back home and telecommute. That seems like a very generous offer to me. Good way to learn a lot.

@Richard Simms

Nonsense!!! Banks certainly still do equity loans. You need to go direct to some local regional banks and credit unions. 

Are you in Australia? Maybe they have tightened up there....

Hi @Tyler Worth

Check meetup.com and Bigger Pockets events section for meet ups.

Kitsap seems to still be a decent place to invest where you might actually be able to make the numbers work. You might be able to BRRRR there.

Asking for a mentor is most likely not going to work. Better off you find some experts and figure out what sorts of things you can do for them to add value to their journey. (hint: Don't ask them what you can do for them. Offer something of value instead)

Read some more books and start analyzing properties in the mean-time.

Good luck and welcome!

@Sara Bradford

Percentage will probably vary depending on the size of the property between 5-10%. Bigger property will be a lower percentage.

That's not the whole story though. You need to know their entire fee schedule. Do they charge move in/move out fee for instance?

Ask for some references.

A 15 year mortgage for a rental property would probably never fit my strategy. I would want the lowest payment for the highest cashflow. 15 year is great for a primary. That's what I have now. 2.875% rate. That said, if I moved out and wanted to rent my primary out, it would make it very hard to cashflow.

@Jim Peterson

I would think if you are having trouble finding multifamily properties in your area, you might experience an even tougher time finding a suitable vacant lot to build one on.

There is also a time factor. It's probably going to take you minimum of at least a year from now to find and finish this sort of project. Don't you think you could find other deals to do within that timeframe where your dollars will keep on moving?