All Forum Posts by: Jake Donohoe

Quote from @Abbey Humphreys:

Hey Jake- congratulations on the move and on your new baby! DSCR financing primarily takes into account the revenue generated by the investment property. Could be a great option for you given your concerns!

Thank you for this insight! I understand the concept of using a DSCR product, but I think my other opportunity is being more open minded about finding properties that already produce income vs trying to find properties that need a ton of work to get to that point.

What has been a good strategy for you to find these types of properties?

Quote from @Vadim F.:

Quote from @Jake Donohoe:

Quote from @Vadim F.:

Quote from @Jake Donohoe:

I am currently wrapping up my second live-in flip and am fortunate to have the opportunity to make a little over $100,000 net profit on this one deal if all goes well. I have lived in the home for 3 years and have done all of the rehab work myself. I expect to have the property listed by the end of next week, and it should move fast according to the agent I have been working with and what I have seen in the area at this price point.

The bigger part of this equation is that my family is moving to Nebraska to live on our family's ranch. We are going to live in a converted coach with only one car payment as debt, so we'll be living very cheaply. I am currently and always have been the main and only income for our household, but that will change once we move to Nebraska, as my fiancee will be contributing to our income. It will drop to about $2,500 a month, which is plenty to pay for our cost of living. But my concern is that even though we will have a lot of cash to invest, I do not personally have a job, as I will be taking on the role of a stay-at-home dad and will be looking to invest out of state. 

I am currently considering a few different markets in the Midwest to buy at least one - two long term rentals properties by the end of the year. How have you navigated around the challenge of not having a job? I know this will be difficult to get financing in some circumstances, and I'm looking to take a proactive approach to solving this problem before it exists. Along with further developing my buying criteria, so that I can determine which market makes the most sense to start in. I will have the luxury of free time every day without a job, and we'll be able to aggressively pursue every deal that comes my way.

I look forward to hearing about your experiences and your different perspectives so that I can further learn myself and pour value back into these great groups. Thank you!

You can go the DSCR route where you qualify on the income the investment property generates.

I have also considered this. What has been your experience using DSCR products?

 You pay small premium vs going the conv route but much less headaches for the small difference.

 Glad to hear. I appreciate you sharing this!

Hey Rustin, I recently moved to Scottsbluff, NE and this would be great to be apart of. As I am pursuing stay at home dad status in this current chapter of life, are there any objections to my well behaved 11mo son tagging along?

Look forward to connecting.

Quote from @Vadim F.:

Quote from @Jake Donohoe:

I am currently wrapping up my second live-in flip and am fortunate to have the opportunity to make a little over $100,000 net profit on this one deal if all goes well. I have lived in the home for 3 years and have done all of the rehab work myself. I expect to have the property listed by the end of next week, and it should move fast according to the agent I have been working with and what I have seen in the area at this price point.

The bigger part of this equation is that my family is moving to Nebraska to live on our family's ranch. We are going to live in a converted coach with only one car payment as debt, so we'll be living very cheaply. I am currently and always have been the main and only income for our household, but that will change once we move to Nebraska, as my fiancee will be contributing to our income. It will drop to about $2,500 a month, which is plenty to pay for our cost of living. But my concern is that even though we will have a lot of cash to invest, I do not personally have a job, as I will be taking on the role of a stay-at-home dad and will be looking to invest out of state. 

I am currently considering a few different markets in the Midwest to buy at least one - two long term rentals properties by the end of the year. How have you navigated around the challenge of not having a job? I know this will be difficult to get financing in some circumstances, and I'm looking to take a proactive approach to solving this problem before it exists. Along with further developing my buying criteria, so that I can determine which market makes the most sense to start in. I will have the luxury of free time every day without a job, and we'll be able to aggressively pursue every deal that comes my way.

I look forward to hearing about your experiences and your different perspectives so that I can further learn myself and pour value back into these great groups. Thank you!

You can go the DSCR route where you qualify on the income the investment property generates.

I have also considered this. What has been your experience using DSCR products?

Alex, I appreciated this feedback! as it has now been a almost 2 months I have created a list of about 30 leads in the area and growing daily, created a handyman business' that is very part time, but enough to live on and have spent much time learning the area and its development needs.

I have spent a lot of time learning these "creative" angles to acquire property with what i feel is enough confidence to move forward with the next deal I find. My next steps are weed through my current list of properties and contact the owners/bank/county owners and structure a deal that is a win-win for both of us.

Quote from @James C Wronski Jr:

Quote from @Jake Donohoe:

I am currently wrapping up my second live-in flip and am fortunate to have the opportunity to make a little over $100,000 net profit on this one deal if all goes well. I have lived in the home for 3 years and have done all of the rehab work myself. I expect to have the property listed by the end of next week, and it should move fast according to the agent I have been working with and what I have seen in the area at this price point.

The bigger part of this equation is that my family is moving to Nebraska to live on our family's ranch. We are going to live in a converted coach with only one car payment as debt, so we'll be living very cheaply. I am currently and always have been the main and only income for our household, but that will change once we move to Nebraska, as my fiancee will be contributing to our income. It will drop to about $2,500 a month, which is plenty to pay for our cost of living. But my concern is that even though we will have a lot of cash to invest, I do not personally have a job, as I will be taking on the role of a stay-at-home dad and will be looking to invest out of state. 

I am currently considering a few different markets in the Midwest to buy at least one - two long term rentals properties by the end of the year. How have you navigated around the challenge of not having a job? I know this will be difficult to get financing in some circumstances, and I'm looking to take a proactive approach to solving this problem before it exists. Along with further developing my buying criteria, so that I can determine which market makes the most sense to start in. I will have the luxury of free time every day without a job, and we'll be able to aggressively pursue every deal that comes my way.

I look forward to hearing about your experiences and your different perspectives so that I can further learn myself and pour value back into these great groups. Thank you!

 Why it take 3 years ?  I am a … well I call my self a master handyman my company name is One Man I am starting to / want to go big and help an investor with capital sit back and relax so that one day I can do the same as him . I believe I was searching for something but I let the idea of the American dream blind me . I am 34 years old I can do anything to a house I know it all and I ll say that proudly . Looking for some to join me and keep living happy, and to get happier doing what I love . I am from pa but hey anyone looking give me a call thanks you 570778078

Hey James, other priorities took place over the rehab. New baby, planning a move across the country, building a few cars for competition. You know, the usual.

Great write-up, Emily!

My family and I are actually in the process right now of selling our house in Tennessee and moving west to go convert a bus into a rolling tiny home to which we can live wherever we can find a place to park well aggressively pursuing real estate investing. This low cost of living as we will have the luxury of living on our family's ranch for free, having little overhead and made a lot of cash selling our home opens up so many more opportunities than the traditional lifestyle.

How have you personally leveraged tiny home invested in your strategy?

I am currently wrapping up my second live-in flip and am fortunate to have the opportunity to make a little over $100,000 net profit on this one deal if all goes well. I have lived in the home for 3 years and have done all of the rehab work myself. I expect to have the property listed by the end of next week, and it should move fast according to the agent I have been working with and what I have seen in the area at this price point.

The bigger part of this equation is that my family is moving to Nebraska to live on our family's ranch. We are going to live in a converted coach with only one car payment as debt, so we'll be living very cheaply. I am currently and always have been the main and only income for our household, but that will change once we move to Nebraska, as my fiancee will be contributing to our income. It will drop to about $2,500 a month, which is plenty to pay for our cost of living. But my concern is that even though we will have a lot of cash to invest, I do not personally have a job, as I will be taking on the role of a stay-at-home dad and will be looking to invest out of state. 

I am currently considering a few different markets in the Midwest to buy at least one - two long term rentals properties by the end of the year. How have you navigated around the challenge of not having a job? I know this will be difficult to get financing in some circumstances, and I'm looking to take a proactive approach to solving this problem before it exists. Along with further developing my buying criteria, so that I can determine which market makes the most sense to start in. I will have the luxury of free time every day without a job, and we'll be able to aggressively pursue every deal that comes my way.

I look forward to hearing about your experiences and your different perspectives so that I can further learn myself and pour value back into these great groups. Thank you!

Congratulations 🎉 it's their few steps that are the most difficult. YOU GOT THIS!

I too am working on my first few deals and would be glad to offer guidance from my own experience if that is of value to you. Feel free to shoot me a DM anytime.

Quote from @Andrew Postell:

@Jake Donohoe ok, let's look at some basic math and then explore some options:

1. To do a "cash out" loan on your primary home you can receive 80% of the Value.  So 80% x $300k = $240,000.  $240,000 - current mortgage balance ($160k or so?) = $80,000 and let's assume $70,000 net to you just for conceptual purposes (don't hold me to the exact numbers here).  So $70,000.

2. Now if you were to do a HELOC on your primary home you could get a HELOC of that full amount of $80,000...but the HELOC is a variable/adjustable rate. AND it matures after 10 years. So it's not designed to be a permanent source of funds but it can be used if you are flipping properties or at least have an aggressive plan to pay it back.

In either of those scenarios should we assume you have to repair the house?  Dunno but you probably know.

3. If you did buy another primary home, that's only 3.5% - 5% down out of your pocket. You could keep your current home for 2 years and STR it or just rent it. Your commitment on your next primary home is to live in it for 12 months....so you could buy another primary home for 3.5% - 5% down in 12 months. Now, our goal in this scenario is to sell our FIRST home after 2 years. BECAUSE if I sell it after 2 years, all the proceeds are tax free still (Live in property 2 out of the past 5 years and no capital gains).  True, you can sell it now with no capital gains, but if I keep it for 2 years that 2 more years of appreciation and 2 years of cash flow.  This route has the lowest out of pocket for me too.  Since buying a "second" home is formally 10% down at least (I will say there are some lenders who are not doing 10% down right now due to volatility of the market).  Don't forget you have to furnish that STR...you probably knew that but maybe someone else reading this may not.  Got to factor that out of pocket expense of furnishings in too.

4. We could also target some "off market" properties to use the BRRRR method with. This should lower my out of pocket costs considerably if done correctly with just some traditional 12 month rentals.

You are in a good place here.  Lots of options and probably a few that I didn't think of but hopefully this helps in some way.  Thanks!

Thanks Andrew, 

A little slow to respond, but I'm re-dialed into forward movement! Much life has happened since this post and we are actually preparing to sell this property (still owner occupied) and moving out west to pursue an almost free place of living while we aggressively get back on track investing.