All Forum Posts by: Geordy Rostad

So you would control 3 out of 5 of the units after you purchase the two from the president? What are the other owners like? Would they potentially be willing to sell some day?

It sounds like it could be a good deal. Remember you'll probably have to close two loans so double your closing costs.

Would you want to move into one of the other units? That might help you get a better deal on financing one of them with a slightly lower rate if you can get an owner-occupied loan.

Yes, this seems like a pretty good deal if the property is already remodeled and ready to rent out. Can you rent the studio to someone separate? That could be a cash cow.

You won't be able to pull the $42k out though. Unless you find someone who will do a 95% LTV investor property loan, you should plan to leave 20% equity in the deal. If the house is worth $122k, 80% is $97k. That is the amount you could expect to go to the bank for. BUT, you probably wouldn't get it until it's all been seasoned for 6 months.

Up front, you could purchase it via an FHA loan with 3.5% down but you'd have to move in.

The easiest way to do it zero down is if your grandma owner financed but if the title transfers that could trigger the due on sale clause.

Is she willing to lease option it to you? That way you could get control of the property and could build some equity in it for some period of time. By the time you need to exercise the option, hopefully you're in better shape. Maybe save all the excess rent you are collecting to use as a down.

I'm sure there are some even more creative ways to approach this.

Don't do nothing.

But also, don't FOMO into a bad market. Owning your house is great long term but if I could do it all over, I would have bought a 4-plex first and lived in a unit. If I had done that when I was 20, instead of buying a house I could barely afford, I'd be living a much different live today.

Personally, rather than owning my house, I would rather have 5 houses generating an income stream that would pay my mortgage(or rent). 

Keep saving. Keep analyzing deals. Look for some BRRRR deals in Georgia and maybe try to wholesale some deals locally to get your feet wet. Grab the thing that makes sense when it finally pops up. If you are continuously looking, you'll know when that happens.

I'd say there is WAY more money out there than deals. I had one week I talked to about 12 lenders. They wanted to give me crazy terms like 10% down on a flipper loan with them financing the fixup even. Usually you need 2 of 3 things for a loan: Credit history, work history, income history. Hard money you just need some cash.

My trouble is lack of good deals. Partially due to extreme competition in my area. Partially due to my stubbornly sticking to my numbers. 

I've been dealing with some wholesalers here in Washington. I'm trying to find an apartment building to BRRRR. Nothing the wholesalers have sent me has made much sense. So I decided to strike out on my own and procure deals for myself... one problem. I HATE cold calling. Every time I've ever tried it, I've literally felt sick to my stomach. I don't like it when I get those calls and I feel like no one else does either.

I think my approach is ok. I tried to call, let the owner know I’m an investor who wants to buy something like they have. I just had a couple of questions like, hey, do you have a good property manager? Or hey, what sort of rent are you getting? Still getting blown out of the water. I’m always amazed when I hear that this strategy is working for someone. Most of my numbers seem to be disconnected.

Anyone have any good advice? I feel like this is the best way to get the absolute best deal but I’m just not sure I’m cut out for this approach.

I used it for a project recently and it did drop my score fairly drastically but I was still in the mid-700's. I didn't max it though. I was probably at 80%. When I sold the property and paid back the HELOC, it shot up to 827 right away.

I also have this same worry. Trying to find a BRRRR or two and I'm going to use my HELOC purchase the thing in cash. I'm worried though that if I rack my HELOC up to 90% it's going to drop my FICO quite drastically. I just ran my score this morning and it came back at 839! According to the lender though, my HELOC maxed out maxes my DTI. I'm concerned that any BRRRR will put me in a funky position where I could totally afford to keep the rental but I'll be forced to sell it because of the ability to qualify for the refi.

@Nikki Thurston how did your deal turn out?

@Steven Swick most of the offers I have written recently don’t have inspection contingencies. It has gotten to the point here in the Seattle area where listing agents almost expect waived inspections. Escalators are about 50/50 on my deals. I still run into agents who miss them in the paperwork or don’t understand how to work with them.

I'm a mobile home investor as well. I haven't done a deal for quite a while though. My deals have all been in Bothell only on owned land.

I'm wanted to ask here if anyone has a contact to dispose of an old mobile home. In the past, I have lucked out and found people who had use for obsolete mobiles that cannot legally be moved for use as a dwelling in Washington State but this time I will likely need someone to remove the home from my site and demolish it.