All Forum Posts by: Jake S.

Is there anyway you could have the seller cover any of it?! Closing on my first deal right now too and the seller agreed to cover a bit of it

Not answering your question in anyway, but I am very curious of the same thing. If I own my LLC completely, why is it an issue to transfer the title to it?!

@Marc Appel A couple of ways you could do this.

1. Sell your home, get a new mortgage on your new home, taking the remaining $$ you have, invest it in a couple of rental properties. With this, you put a down payment of 25%, and finance with a bank loan for the rest.

This way, you put other people's money to work and stretch your $$ across a few properties!

2. Sell your home, get your new home free and clear, take out a home equity loan or HELOC to purchase a rental property, then after some seasoning, refinance and put the lien on your rental property and own your home free and clear, and then rinse/repeat this process!

I believe you can get better Cash on Cash returns by finding properties that will cash flow better, and be more suitable for renting

Wow! Still negative on equity?! What a crap deal :/

1. That can't hurt, it's what I did. You can also get into some creative financing (read BP book on no/low money down)

2. I am not certain, but I believe you cannot use VA eligibility on a home you are not residing in.

3. Find a home you can rehab a bit and force appreciation, and over the next 6 months-1 yr (maybe more), you MIGHT be able to refinance your loan to pull some equity out, although I heard this was difficult to do now on rental properties. I'd recommend keeping at least 25% equity in the property (bank may require this) so you are not overleveraged.

4. I recommend reading the BP book on low/no money down. It discusses a lot of creative financing strategies. Great read.

5. Not sure on this one!

Wow, prices are so low compared to where I am from, for a duplex.

I am in the process of getting my first duplex as well (closing is in 2 weeks). So we are in similar shoes!

Are you paying in cash? Taking out a mortgage? What is the interest on the loan?

Do the properties need any rehabbing right now? What would be the cost for that? Im guessing not much since it is a newer home.

Also, be sure you are factoring in a vacancy rate (whatever the area's rate is).

There are several things you could do!

If you want to go down the road of renting your home out, and getting a new mortgage on another property, you certainly could!

You could also sell your house, move into your new one and refinance it to pull some equity out, to cover a down payment on a property that will provide you with solid cash flow and great returns.

You might not get the best returns possible by just renting out your current home, but you will own it free and clear, so your cash flow will be high.

I would prefer to leverage some of the banks money, and not own any properties free and clear (within reason), and possibly get 1 or more solid cash flowing/high return properties

7-8 hours per night always!

Hey there! My wife and I are in the process of purchasing our first property (duplex) and need some recommendations for an inspector, CPA, Property manager, etc.

Thank you in advance!

Brianna and Jake