All Forum Posts by: James G.

@Jacoby Atako I would personally recommend starting your investing in the state in which you live in. Construction management mistakes can be extremely costly, and the best way to learn is going to be through experience. If you must invest out of state, I would recommend getting multiple opinions on the subject property (property manager, contractor, agent, etc.). Ask for pictures, a detailed scope of work, and do your homework on what certain items should cost. Lastly make sure to get multiple bids from different contractors. If prices are about the same, you will know that you're on to something!

@Virginia Damato The biggest thing to look for is going to be the points that they charge, the interest rate, and the length of the term. I would personally be cautious about using HML right now, however. Property values may continue to drop, and it may be difficult to obtain long term financing, or sell when it comes time to do so. Proceed with caution!

@Tyler D. Don't ignore your rules of thumb, those rules are set in place for a reason. If you are serious about house hacking, build more relationships so that you can find the deal that you want, or move to a state where you can find more 1% rule deals.

@Drew Steusloff Look at what other comps are renting for on zillow or the MLS. If there are not very many comps in the area, stay conservative. Do you know a lot about your market? Are there diverse jobs available? A growing population? If everything else pencils out, a good rule of thumb for vacancy is about 10% Hope this helps!

@Patrick Tudor Refinish your hardwood floor, no question. Hardwood floor will last a lot longer, it will look better, and it may even be cheaper than installing brand new, laminate flooring. Whenever I find hardwood floors in my properties, it is always a good day.

@Christopher Wallace I would make sure to take your time and inspect/analyze the deal before getting yourself into a headache. There may be a better deal out there that you won't have to pull out emergency cash for. That being said, if you do end up in an emergency, you can utilize credit cards, friends and family, get a job/2nd job, etc.

@Chad Reynoso vinyl flooring will be cheaper but the hardwood will last longer. I would say it depends on your current financial situation. In the bathroom, you're going to want to do vinyl either way - vinyl does much better than hardwood with water...

I am still getting tenants during this time, it is just taking a bit longer. Utilizing technology during this time is going to make a big difference for you. Use virtual tours, docusign, etc. If you have to I would consider offering specials (half off first month's rent) if necessary. Do what you need to do to stay competitive.

@Nahal Beckam you are going to have a hard time finding a bank that will refinance your property at the same LTV during this time. Many banks are lowering their LTV as low as 65%, requiring 6 months of mortgage payments in escrow, etc. I would wait it out a little bit until this COVID-19 pandemic settles down a little bit. Maybe try reaching out to a few brokers.

I've personally had a good experience with section 8. The government pays most if not all of the money every month, so for times like these it can be some really good insurance! That being said, sometimes your quality of tenant may not be the best; however, if the tenant does anything that is against section 8 policy, they will be kicked out of the system. Personally I would recommend it for my market and I would do some more research for your personal market.