All Forum Posts by: Ryan A.

Hi Mark

What type of investing are you seeking to do? Is this a partnership or just solo? Are you buying cash? Financing commercial? Or owner occupy? 

What numbers are you looking for? Rents are decent but the area does not command high rent compared to other nearby towns. In general the economy here is stable assuming the pandemic continues to slow and casinos & businesses stay open. Norwich is not upscale community but is centrally situated among other diverse communities.

To be honest home values are a bit high right now and savvy investors are not buying unless they have a great strategy or can perform a flip within the time required to be profitable.

Dont forget to search for more info
https://www.biggerpockets.com/...

Meaning if you wait you might get a deal on any property.

I think if you're looking to hold long term you need to purchase below market. Usually that's easier when the market is flooded with inventory. In most areas there is no inventory right now so properties are selling at inflated rates. 

If rents are stable do the math on cash flow. If rents - mortgage payment - expenses does not earn you enough cash flow you will be in a bind down the road and if the market dips you will be stuck with the over leveraged property. This happened to allot of people in 2005-2010. After that bubble burst, the market was flooded with foreclosures.

Know what your rents and property value will be over the next 5 to 10 years and you can craft a plan that doesn't put you in a bad position.

TBH those are really good savings. And you seem to have a good handle on what you are looking to do.

Check out the House Price Index and the FHLMC housing forecasts.

You might find better price/flow ratios if you wait bit longer.

I looked at units available to rent locally and found a handful of 2 bed units between 1000 and 1200. I am not familiar with the area but I would imagine rental market is quite stable with the proximity to Seattle.

If you intend to purchase a strictly investment BRR then the mortgage terms will not be as friendly and you may find yourself low on cash. But keep looking, you have the right idea by finding lower cost property where the rental market is still strong.

FWIW, I can tell you house hacking with children is not easy. But it can be done. And the rewards are good, you just have to honor your plan. It wont be any easier than it is now, especially when they are young. My wife and I stuck it out for 3 years with 3 kids in a 3 bedroom apartment until we saved enough for the next step. Don't place too much importance on how 'nice' your home is, you will have a better one soon!

Is this your first rental? You should be very confident in your landlording abilities before leaving the state on your rental. At the very least you should have a local 'agent' that you can call on to handle issues that arise & drive by now and then to make sure the home is being taken care of. This goes without saying, but your tenants should be screened well and you should have solid leases that take into account local laws, housing codes etc etc.

#1 thing that sticks out to me with a new loan - the change of mailing address could trigger some kind of audit with your bank. If you are in good standing, maybe the bank will allow you to move considering your circumstance? 
You might to call a trusted source to find out if that is true without compromising yourself. Or hopefully someone here can chime in?

That being said, If your mortgage is being paid the bank is happy. But I would try to envision worst case scenarios that might jeopardize your loan; Housing complaints, code violations, failure to pay taxes, failure to pay utilities... things that would bubble up to your local housing department or recording clerk that might result in fines, levies, liens and other things that may somehow (directly or indirectly) get attached to the property, which may affect the banks interest in the property.

I am not a legal expert, just my take. Good luck!

Joshua 

Making some assumptions here, but here goes. You didnt say what kind of home you have, I will assume its a SFH. If you dont have any children (just two adults) and you are serious about investing, you will downsize and house hack a multi-unit.

You said the current home is not in your name so you will qualify for FHA on a new purchase of a multi unit, and the down payment will be minimal. I looked in your area and saw this 2 fam (3205 Preble St) @ 325k. Assuming 10% down, you will have ~30k leftover. You may need 10k to get the new house ready for rent. Rents are about 1100, which pays half the mortgage. Assuming you are both working, you should be able to continue saving.

You will still have cash in your pockets and you will have flexibility to try and rent the current home for additional cashflow, or simply sell outright and get more capital to add to your stash. Not to mention paying your parents back. Who knows, if they are as charitable as they seem they may even decide to loan some back to you for your next venture.

You didnt say what your long term goal is (holding vs flipping etc) but I think you have a good foundation to kick something off real soon.

Good luck and dont forget to come back and update us.

I'm just about where you are Michelle. I am about to sell my MFH and the proceeds will go towards flipping. 

Some points to consider; 

• If this is your first flip, take your time. do your dilignece and keep your budget tight. Once you do 1 you will be able to fine tune your timelines and budget next time
• Keep in mind, many markets are not great for buying right now. It is a sellers market and you will probably pay too much unless you can flip it quickly (90 days)
• I dont see you getting a loan easily with no W2 income. You may need a cosign or you could partner with someone else who is able to obtain finacing by providing some capital.
• If you are able to secure a loan, use lines of credit for repairs and vendors, you will pay some interest until you sell and can pay off the credit.

THere are some contradictory issues here so I think you have some tough choices to make but let us know what happens regardless.

Jason, for the benefit of all, please be sure to update us on what you encounter and how you were able to handle the situation/or not. Thanks

Hi Jon
I'm a westerly native and live in nearby Lisbon CT now. I have one property in downtown Westerly. Its a very stable area, long as you can find a deal. I think westerly can be a bit pricey considering the deals you can find in surrounding areas but you should have no shortage of qualified tenants or buyers for your next project.

There is a local meetup towards the end of each month in the Waterford/East Lyme area that you should consider attending. You can look for Mat Ogrady or Jaclyn P here on BP for info on that meetup.

Welcome & dont forget to fill in your profile!

 Are you saying when you and your team (PM) sought quotes, one of the distributors used marketing jargon (the subject matter) to influence potential customers to purchase their new equipment?

That's about all I can glean out of this.