All Forum Posts by: Jamie Pickens

Hey Andrew,

Yes it’s allowed to be an investment property. I sold 2 exactly like this to another investor but he used conventional financing (as an investment) that I don’t qualify for. This one I’m trying to keep for myself. I can do up to 25% down if needed. Thank you for the advice and encouragement:-) Is the thinking that a local investor(s) can refer me to a lender? 

Bobby I will do that! Thanks! 

I'm buying the house from a housing nonprofit/city of VIRGINIA BEACH agency below market. They bought and rehabbed it in 2013 using state funds for affordable housing. So it has an "affordability DOT" attached in that amount for another 5 years, then it's forgiven and goes away in 2028. I'm a buy and hold DSCR borrower with strong credit (mortgage score is 730, credit karma is about 770+), great cash reserves and fully prepared to put 20% down. The deal can be done with conventional financing but that's not where I am lol. I retired from my job a couple of years ago (thanks real estate!) and I'm just starting to set myself up for conventional financing if and when needed. I have had been told no several times now but I believe there's gotta be someone who will lend to an experienced, prepared investor and make an exception to the 2nd position DOT.

Purchase price $170k, arv about $300k, 4 bedrooms 2.5 bathrooms, 2300 sq ft, 2nd position DOT $194k (DOES NOT NEED TO BE PAID BACK they just want you to rent to low income family (think sect 8)- it goes away in September 2028), rental comps between $1900-2200. It cash flows while you wait for the DOT to expire and be completely forgiven. House is in Norfolk, Virginia. House also has a 3rd floor attic big enough to add 2 more beds and a bath down the line.

Hello,

I used it before the switch and it took 3 months to get the payment. Good thing is they add on additional months as each month passes so you’re caught completely up when it finally comes. You said you can’t afford to keep waiting, then don’t. Start the eviction process- you don’t have to go through with it if the payment comes before the process plays out. Let them know that you expect the funds to come but that you have to follow the process and the law to cover yourself. DO NOT RENEW with those tenants and if they are ever late again get them out ASAP. We are 2 years into this pandemic, folks have to figure out how to get their rent paid on time without it becoming YOUR problem. When it happened to me it was 1 tenant out of 7. You have  2 thirds of your tenants not paying! Be kind but follow normal protocol and take care of yourself and your business first. Best wishes! 

I’m just thinking/typing out loud. Would there be anything to her smoking weed around kids that could get her shut down/put out more immediately?? Call child protective services (anonymously) and ask if there’s any violation being committed. Seems it would amount to drinking at a daycare. Cash for keys might work. Otherwise, follow your normal process and get her out ASAP. 

My advice. Put the money in the bank long enough to have at least 2 "clean" statements (you can't see when it was deposited), then they won't source it. 

Hi @Marquis Washington,

As a beginning investor with not a lot of capital I bought a townhome in Chesapeake in a low income area with new/newer/established working class neighbors very close by zip code is 23320. Then I found an irresistible SFH (3bd 2bth) in Portsmouth on an auction site for 25k and it rents to 2 military guys for $1045 per month zip code 23704. I will buy anywhere on the southside for proximity reasons, as long as I feel like I can rent to decent people (all lower income people aren't bad tenants). I'm currently looking in Norfolk, Chesapeake and Portsmouth because that seems to be where the affordable and profitable property is. I use hard money so it has to be priced for me to make money monthly before I'll buy it. If I was using bank money and willing to put 20% down, I could go higher. But that's not where I live LOL.

Hi Antonio,

I agree with Chris. Respectfully, buying real estate is something you should do after you have a handle on credit/money issues and AND everything else that life is going to throw at you simultaneously, as it does everyone. I suggest 1st time buyers (I'm assuming that's you), be debt free or very close to it when they buy. I know you may want it NOW, but trust me you'll be glad that you only have your mortgage and utilities when you have to fix or replace something the 1st time. Become disciplined with your money and then you'll be ready for success in real estate.

At that point, Greg's suggestion to buy a duplex is a great idea or house hacking (you buy a house and fix it up while you live in it and then rent it out and buy something else), rinse and repeat!

Welcome Micheal! Sounds like you'll be doing big things! Congrats on the new project!

Shaun,

This is a FannieMae change? Based on 2% of what I owe on ALL properties or the loan for the subject property?