All Forum Posts by: Irving Casas

@Satyam Mistry I agree the 1 and 50% rule should be used as a rule of thumb. Each financing situation is different. I also think there is room to improve properties if an investor can keep an open mind. Thank you and best of luck in you future REI!

@Satyam Mistry Awesome work staying persistent at your goal of owning a duplex. Extra kudos for sticking to the area you were looking at and taking action. Appears that you did your homework and were ready to pounce on a good deal. I've been educating myself on the 50% rule with MFH. 

States: Over time,50% of your real estate investment's income will be spent on expenses, not including the mortgage.

I'm curios if you used this rule of thumb to evaluate this deal.Thank you sharing. I pray to have my first MFH soon!

@Jason Hines I also attempted to get a conventional loan for a 2 unit duplex. Two lenders requested I put down 15%. I live in Portland, Oregon. 

@Jacqueline Nguyen My recent experience in Portland with a duplex- I applied with 2 lenders they both told me I had to put down 15% for owner occupied.The duplex didn't pass inspection so I moved on from this deal. 

@Pablo Solorio Talk you a local lender. The lender will look at you credit scores,work history and debt to income ratios to determine you borrowing ability. Credit score isn't the only factor for determining borrowing ability. If the deal is really good(use your income/savings for down-payment) perhaps you could get a co-signer? Additionally the lender may be able to help you improve you credit score. 

@Jeff Pearson I'm trained as a respiratory therapist for my first career. Working 50 hours week and 2 positions I was able to make over 100K however I'm also grew tired of having to trade my time for money. I got my real estate license in Oregon September 2016. Real estate agents also trade their time, showing proprieties, learning contracts, marketing and advertising their services. Since you make a high income and I presume you can borrow more money, than perhaps hiring a team of processionals is a better use of your time. BP suggest a investment oriented realtor, property manager, lender, title rep(escrow) and contractor. Learn to use the skills others have perfected to meet you goals. Best of luck in you REI journey.

@Jeremy Pelle In expensive areas of the country house hacking or multifamily investing are good options. @Karl B. FHA loans have low down-payment options and allow higher debt to income ratios. Check with you lender first and see how much you can be approved for. Rents in Portland for a 1 bedroom range from 1200-1600, depending on what area of town you live in. I've in the process of buying a duplex, I'll keep renting one side out(1025 below market), add a room to the vacant side, get a roommate and live rent free. I don't want to raise the rent on my current tenant. I'm adopting the mentality that a long-term-tenant, is better than looking for tenants very 6-8 months. Every month I'll put money aside for vacancy, maintenance and expenditures(furnace, roof, etc). Best of luck to you.

@Ellie Perlman Job growth and unemployment are huge drivers of demand. If people can't work where they live they will move, there's metrics that point to an influx of people in areas with higher Job growth. Boise, Portland and Seattle are some examples of cities where housing demand has increased appreciation and double digit rates! 

@Steve Morris I'm in the inspection phase of buying this duplex. I'm not skimping on inspectors I've hired a general inspector, sewer, radon and dry rot reports to start. As a realtor in Portland for 4 years I've learned that good inspections can save you money. Repairs with bids are the best way to ask for the seller to fix the issue or drop the price! The current tenant has lived in this duplex for 5 years, I'd rather keep him happy and not raise rents for a while. Best of luck to you Steve, let me know If I can help in any way. 

@Cory Carlson

Spread sheets help me organize my thoughts, thank you for sharing this spreadsheet with the BP community. 5-10% seems to be solid consensus for a maintenance budget. I'm in the inspection phase of buying this duplex. I'll make sure to have my inspector note the life expectancy of the furnace, water heaters and appliances. I would save more if the appliances are dated.