All Forum Posts by: George Gabriel

@Scott Mac

Dave claims to have many REI properties. He does also say he bought them in cash. A feat that very few can accomplish. I agree with your point though. Dave doesn't leverage debt for his real estate, so expecting him to preach about the benefits of debt or how to utilize debt to your advantage isn't expected, nor would it make sense.

@Glenn Haave

Hey Glenn, I'd love to chat about your house hacking experience so far in Miami. I'll send you a request so as to not hijack this thread. Cheers!

@Randy Ugarte

Hey Randy, I'm here in Miami as well. I'm looking at house hacking a duplex in the next few months, so not in the market for the same deal(s) as you but I'd be happy to connect and help out in any capacity, even just help look at numbers and brainstorm for your first deal.

I'll send you a connection request in a bit man.

@Ben Cochran

Hi Ben, I'm not an expert on the topic but I'm considering going the FHA route for a duplex myself.

My thought would be to keep the cash flow higher, while giving yourself the option of paying extra towards the mortgage.

In other words, a slightly higher interest rate is OK given the cash flow difference, but you could also take the extra cash and apply it towards the mortgage if you really wanted to. The shorter mortgage means the cash flow is very tight and any vacancy would mean you are paying out of pocket.

Just my perspective as I'm about to head down this path as well. Would be very interested in reading what others think about it.

Good luck!

Hi Steven,

Congrats! I'm hoping to do something similar in 2020!

 What area are you in? 

I'm assuming you went FHA route given the low down payment?

@Lizzie Carver Hi Lizzie! Not sure regarding property rights. I'd love to connect with your colleague here in Miami to discuss further. Please feel free to message me to continue the discussion!

Hi BP community!

I have a commercial property that is owned outright by a family member. He has expressed in the past an interest in doing "something," with the building. It is a one-story office currently occupied by us (family business) in a busy area in Miami close to major highways, apartment complexes, etc. 

I'm looking to present the family member with something more concrete than "we might be able to do something."  So with that in mind, I'm looking for commercial real estate mentors, investors, developers, and/or pros that would be willing to discuss coming on board the project as an adviser to help work a deal with a developer in the area. 

My goal is to convert this from an antiquated one-story office building to a multi-level commercial or mixed use building (depending on what the area allows and what a developer thinks could extract top value). 

I firmly believe the family member would be willing to work a deal to develop something new if he doesn't have to put any cash into the deal, so ideally we would look at offering equity in the project rather than selling or providing capital. 

Please feel free to discuss this on here, or to inbox me to schedule a private conversation.

I look forward to hearing from you!

Cheers,

George

@G Todd, welcome to BP! I know you mentioned in your intro that you are looking for MF & SF deals but I have a possible commercial deal I am seeking advice on. Please feel free to inbox me if interested!

Cheers,

George

@Koki Agata  Makes sense, I suspect others in your position have a similar hurdle (convincing the SO on the idea that is). 

Good luck in the search! Let's keep in touch via inbox :). 

Hi again Koki, 

After researching here on BP, I've decided my primary strategy for my first investment will be a multifamily using FHA while living in one unit for at least one year myself.

I think the biggest "hurdle," for me will be finding a property that will be approved for the FHA loan that will also yield relatively good cash flow, and be net positive once I rent the unit I'll live in for at least a year.

If you are looking at buying your first property while simultaneously investing I think it could be the right strategy, especially if you run the numbers in your area and see that the renters will essentially pay most of / all of your monthly expenditures. 

One thing to consider that perhaps a more experience BP member can consult on are any penalties or "pitfalls," of moving out of an FHA property after one year. For example, I read / heard somewhere that in order to qualify for another FHA loan (for your second home) you would need to have at least 20% equity in your first property (the initial multifamily used alongside the FHA loan that is).

Again, I'll stress that I am just as new to this as you are, so perhaps something like what I mentioned wouldn't really occur or wouldn't really be an issue. 

I suppose you and I both would also need to get the significant other's approval before going forth forth with a duplex / triplex as a primary residence while renting out the other unit(s). Is it something you think your wife will go for?

I'd love to stay in the loop and I'll keep you updated on my end as well as I am looking at this within the next few months!