All Forum Posts by: Gia Hughes

Thanks @John Salazar. I don't think my outlook is one of negativity and/or anger though. Like most people I do get temporarily discouraged. I am a person that will express these issues, but then move on. My post was also intended to solicit feedback on things that I could change or if it's mostly patience that is needed. However, your words are still appreciated and well received.

Thanks @David Dachtera Your words are very encouraging. I would like to get around using my own money. I have not made connections or built a network of investors yet. I have attended local REI meetings, but nothing just yet. I figure having at least one property under my belt would aid me in building those relationships. I'll learn it all as I go along.

I have wanted to own properties for sometime.  I have a primary residence. I've completed real estate school (didn't take the exam). I have a good credit score and super debt-to-income ratio. I have a process for analyzing properties. I have a real estate agent that I use, actually 2 for different cities. I am preapproved for conventional financing. 

So what's the issue? I don't know. I have made offers on several properties and several have been accepted. None have gone through. With the first property, my broker switched companies without telling me. We still communicated, but this made things fall through the cracks and the week prior to closing the lender came back and said that they needed 30% instead of 20%. I walked away from it. I have since secured preapproval elsewhere. Then I tried a house that I was going to move into. I made them a great offer near asking and they got scared. I guess they didn't really want to sell, so they pulled the house off the market and said they would put it back up in July.

So I went to cheaper Section 8 housing, but the ones that I made offers on didn't pass a 4-pt so I would have needed to be able to support a cash deal. Another multi-unit had too many structural issues. I figured it was too much for my first deal.

Are these growing pains or are there adjustments that I need to make? I'm wondering if it's me and I am not being persistent enough. I prefer buy and hold, preferably multi units, but I have looked at SFH that would make good rentals as well. I'm in a coastal area of Florida so the market is really hot. It's been hard finding properties that will provide decent cashflow that I can get approved under conventional lending. With all these financial ducks in a row, I thought getting the first place wouldn't be this hard. It has been over a year and I am trying to not give in to the "not meant to be" feeling.

@Zach Nolan Are the properties still available and can they be purchased individually? If so, can you send me the list.

@Brian Cramer I see that the unit in the title was sold. Is the other unit still available?

Danielle, how much time left on the leases?

@Ayodeji Kuponiyi I do plan to continue to save for repairs. The warranty would just be taken out of repair costs, leaving some still.

@Whitney B. thanks for the blog post. I'lll read it now.

I am new to the BP community. I am in the process of buying a Section 8 rental that has a tenant under lease through June. This will be my first investment property. I was wondering what people's opinions are on getting a home warranty for the major systems. In my primary residence I had an AHS home warranty ($45/mo). Or do you think it's better to just save up for those repairs. My plan is to save about 20 percent of rent for repairs and capital expenses each month. The current rent is $1046, making reserves for repairs $209. After expenses, including property management...if I go that route...cash flow would be $206. In essence, I am considering diverting cash from the repairs reserve and paying for a home warranty. Maybe this is a good idea for the first year or two. I should have $5k - $10k in savings already just from saving money from my regular 9 to 5, but that is my personal savings. In your opinions, is it a waste of money or a good idea to start with a home warranty?

@Shalanna L. Pirtle I think I understand your general reasoning. I am trying to make my way into REI and the first thought I had was to rent out my current home and buy a new place to live in. It seems to be a quick and easy way in to get started as a landlord. I wonder if most newbies have this thought? Like you, I don't need to have rental income counted to qualify for other properties. My thought was that I could get another place for 5% down by moving in and it would be cheaper than my current home. Once place that we differ, is that my current home is still underwater. I can, however, break close to even (cash flow wise) by renting it out. Then buy something with a much cheaper mortgage. I say if the numbers increase your cash flow and you will see appreciation in the new place (up and coming) then it's probably worth the headache of moving.

I may still try the above scenario, but right now I am under contract for a small SFH in Florida that is currently rented as Section 8. I could still try the move and rent scenario after this closing. I would hope to do it with a multi-family though to maximize cash flow. I'll keep following this thread! Great question!!!

 Wow!! That's an awesome job!