All Forum Posts by: Account Closed

Personally, I would look at doing some flips only with the amount of capital you have if you buy a rental property and then find a good flip deal. You might not have the fund available if they are tied up in the rental. 

On a flip you should be able to get at least 30% ROI on your capital, significantly boosting your return as opposed to a 10% CoC deal.

Fort Lauderdale is a great area right now. Good fundamentals and prices are not so high that cap rates are compressed 

@Jonathan Patterson Both strategies are great and work by taking advantage of leverage. Personally I feel that going into a FHA purchase first is the right way to get your feet wet. There are less risks associated with the rehab and refinance and requires very little cash. After your first FHA purchase your houses expenses will be reduced and you will start to build equity. From this position you will be able to accumulate capital more quickly for your next purchase.

Also consider your resources. For a BRRR you will need to have more cash because you cant mortgage repair expenses. Also properties that are in large disrepair and thus a price discount might not qualify for a conventional/FHA mortgage, more cash and more risk.

Your perspective is that you have to do one or the other. Why not both ? but in a sequence that makes the most sense. 

  If you buy a property with multiple units the income from the rented units helps you qualify for a bigger loan. 

You will need to live in the FHA property at least one year as its a requirement for the loan program to be an owner-occupant. But it is a great option to buy up to a 4-plex with almost no money down.

After that take the HELOC cash and do a deal.

I'll recommend my self or a good friend of mine who lives in the area. 

Both of us have real estate investing experience in rental and fix and flip deals. 

I currently work at a large real estate development company 

Would be happy to connect.

I think an FHA multifamily on a duplex to fourplex is the way to go.
- You are diversifying away some vacancy risk by having more tenants. With a condo, you only have one tenant, if they leave you are cashflow negative !  

- You can qualify for a bigger loan since the income from the property is considered as income to you. Meaning you can maximize your one time chance of buying a property with 96.5% leverage via a government subsidized loan 

- Considering the two above over the long term if you buy a multifamily you will have: 

1) Created more equity via loan paydown and appreciation

2) More cash flow and stability

In my opinion you want to go as big as possible when doing FHA. Its the only chance you will get to buy cashflowing assets using barely any of your own money. Your cash-on-cash is amazing. Puting a down 3.5% downpayment and have the sellers pay your closing costs. You can earn 50% on your capital per year just from the rental income.

Short term comforts: Buy a Condo
Long Term Wealth: Buy Multifamily and maximize that loan

 I've taken the REFM course and it wasnt great for development because it was broad. I took and have access to BIWS course and it was very good. 

@Michael Rashfal Im very networked in the wholesale market. There are good deals to be had just this week I saw 3 properties and had a client buy one. 

Send me a PM and Ill send over the inventory I have.