All Forum Posts by: Hannah Espejo

Hello everyone I have been doing a ton of research in regards to fix and flipping my first home! As everyone knows this market is a little slim however I will be putting in the work. My situation as it stands is tough at the moment but I am not a quitter. I’m looking for a property that needs about 30,000 in rehab maybe just bathrooms, floors, and paint. I don’t have cash in reserves for the the downtime’s while rehabbing in 4 months. Is there any advice someone can give me in regards to hard money? I only have $6,000. Is there a such thing as 100% finance with no money down and that a lender can tack reserves for insurance, interest and payment into the loan amount possibly? I currently live in an apartment and want to utilize the time my lease is till November. My goals is to fix and flip two or more properties as in a single family home then have an investment rental property! I’m a newbie but I want to go to meet ups and love learning. I have an agent I’m working with right now who is going to help me search for properties to fix and flip. I own my own nail business right now but eventually want to dive full time into real estate! Can a lender use the property I want to fix and flip as the asset only? I would really appreciate all the advice I can get and maybe tag team with someone on a deal and learn and grow! I’ve never wanted this so bad.

Quote from @Richard Betz:

Do you have a trusted family member that may want to partner with you for the fourplex or duplex purchase?  If they can help with the down, you can split the ownership, rental income and profit when you sell.    

I can ask my mom and see but she doesn’t live in the same state as me however it’s worth a shot. 

Quote from @Mark Leavitt:

Hi Hannah, 

I don't think you will like the advice I have to give, but we all need to start somewhere, The first question I would ask is do you have your own home now? I really suggest you keep learning from bigger pockets and all the ways to grow wealth through investing. 

When you are in a market like anywhere on the front range it will take cash to find an investment property like the one you are hoping to find. I understand the desire to want to start investing now, but for some of us it takes time to build up to the point of buying. 

My Advice to you would to keep learning, growing your savings and reach out to a lender you can rely on to help you get to the point you need to be at to buy this investment property. The lender will help you find out how much you can afford and help you map out the way to get there. build your credit score up while building your savings. 

Just a fast example for you.

say you buy a duplex in Co springs average price is $350,000 

I take it you are looking at using an FHA you are looking to use 3.5% down

Just to get into a property at this price point at the minimum down you are looking at 

$12,250 not counting closing costs which would be around $4,500 I would say to get into your first property you should try to have $20,000 in savings even if you went with loan assistance program called CHAFA you would need to bring about $10,000 to closing. 

I don't say this to discourage you, It took me over 3 years from when I started learning about investing until I was financially able to invest. But most of all learn every aspect about how you will finance your investment and start working to make that happen!  Best of luck

 

 Thank you so much mark. I love bigger pockets and listen to the podcast and have broken numbers down with my lender and he did mention something similar. I was looking into chfa and got approved but they don’t cover two or more units. It’s inspirational to hear your story and am looking to do the same just work hard have a goal and save 20k like your saying 🙌. It’s tough for a single woman but I know that motivation will keep pushing me as I am not a quitter! Again I appreciate your time and am loving this forum.

Quote from @Afam Agbodike:

@Hannah Espejo

I agree with Charles, focus on saving as much as possible now, and idealy increasing your income. It will be pretty tough for you to find a property in your budget with $5,000. Even with a 3.5% down FHA loan, that only gets you a little over $145k. I don't know your market, but that seems low for a 4 unit property in most places. But every $1,000 you save will get you another $28,000 in loan value, assuming your income supports the purchase price. Saving more will also reduce your expenses, which means you will likely feel more comfortable taking on a bigger mortgage.

Afam, thank you for taking time to respond. Do you think prices In Colorado Springs will go down a little due to higher interest rates? And that is great advice. I am taking my real estate exam on the 22nd of this month and I know career change will alter things as I own my own business doing nails full time. I know you need two years for an independent contractor in a business to show stability. And will be doing real estate part time until the ball hets rolling then I can jump in full time. Any recommendations on how that will effect the home buying process if I wanted to buy in a year from now?

Thank you Charles for your advice that’s a great plan. At least I have a road map to follow through with now and have a goal to set. I’ve just been listening to the 10x rule by grant cardone and got really motivated. Money in the reserves seems to be the biggest thing in case like you mentioned things like that happen.

Any advice I can get here would be appreciated. I only make 50k a year. I don’t have much money saved as I only have $5,000 for everything. However I know the interest rate would be higher because of that and my debt to income is 50%. I want to buy my first multi family 4 unit and live in one. Is this possible given the situation that I am in? I don’t have any friends or family to invest with me. Would it be worth it for me at a 7% interest rate if I keep those units rented out? I want to take action and will do whatever it takes as I know Colorado Springs is a hot market. I want to get into the investment world!