All Forum Posts by: Inga Fonder

I looked at a single story 4/2 ranch style home with a garage that is currently listed at $89.9k, and was originally listed at $100k. The house was built in 1978 and looks to be in good condition, with the exception of eventually needing new windows and painted walls. It has been on the market for 134 days, so I may be able to negotiate a lower price if the seller is motivated.

My down payment is 3%, and closing costs will be factored into the mortgage.

The amount for principal, interest, property taxes, insurance, and mortgage insurance is around $740-$760/month. I estimated gas, electricity, water, sewer, and trash to be $225/month, which could be billed to tenants while I'm house hacking. The cap ex and vacancy rates are 5%, and 6% for repairs, which totals $176.

The realtor informed me that this has been rented by grad students for $1100-$1300/month plus utilities. I know I can have the utilities in the tenants name when I'm done house hacking, so that's less expenses on my end.

I may have little to no cash flow while house hacking, and I'm wondering if this would be a good deal to pursue?

@Zack Karp I tried to tag you on my phone and it wouldn't let me, so I figured you didn't get the notification.

The CU loan officer said even if the loans were excluded, I wouldn't qualify for much more than 75k that was approved for a conventional loan. The loan officer from the bank said he needs to know when FedLoan will report the payment before being able to provide me an amount.

@Zack Karp I've qualified for $75k with Fannie Mae using a $0 IBR, but I was wondering if it's possible to qualify for a higher FHA amount with an amortization schedule? I'll work with $75k if that's my only option, but I was hoping to get a higher amount for a MFH to house hack.

@Zack Karp The lenders I've communicated with said that since my IBR payment is $0, they'd have to use 1% of the total amount. This counters what I've read on Fannie Mae, here, and other sites. Would there be any way to have the FedLoan report an amount of $5, or something greater than 0?

@Nick Gaines and @Quentin McNew I greatly appreciate the feedback. I'll make sure to develop the professional relationship with the local lender, and to maintain that over time.

@George Blower Thank you!

@Quentin McNew and @Nick Gaines Do either of you know a good mortgage broker in the area? I've been in correspondence with a local bank lender, but I've heard it can be beneficial to use a broker to find good rates.

That is very helpful. Thank you!

Good morning everyone,

I'm trying to get into real estate investments using the house hacking method for my first property. I've found a realtor to work with and am now working with someone in order to receive financing. However, I'm currently a graduate student in IL, and have loans that don't have monthly payments being reported because they're in deferment. I do have a steady monthly income from working at the university. Even so, the mortgage lender informed me that due to federal laws, the way student loans are reported has a significant impact on the amount I can be provided. 

It was suggested that I contact the Federal Loan agency to have the loans taken out of deferment, and begin reporting monthly payments. This process can take 1-3 months depending on how quickly they handle the request. Currently, I'd only be able to take out a mortgage loan for 60-70k, but the amount would more than double if the student loans were removed from deferment.

Has anyone had experience dealing with a similar circumstance? If so, what's an ideal way to approach the situation in order to move forward? I appreciate any input or suggestions.

-Inga

Thank you, Nick. I'm glad to hear your business has been increasing the number of properties for your portfolio.

I've been browsing through available properties in parts of Champaign to gain a better idea of current prices and value. My main objective is to build a good team of people I can work with to find, purchase, and fix up properties.

I was able to find the information for those REI groups, and will try to attend meetings when I get the chance. It should be a great way to meet local investors, and learn how to get my foot in the door for house hacking, and use that as a portal to work towards BRRR.

Thank you for the response. House hacking definitely sounds like a viable option to get started. I never thought about incorporating Airbnb into the property, so I'll keep that in mind. The other strategy I'm considering is doing a BRRRR, since I can start out with a lower price. However, I'm still trying to find a good broker to help me locate foreclosures/REOs, and other properties.