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All Forum Posts by: Jheanell R.

Jheanell R. has started 5 posts and replied 15 times.

Hi All,

I currently have a Duplex (owner occupied) in the Fort Lauderdale area. I've had it for almost 2 years now. I would like to buy a second investment property this year but I'm paying down credit cards to raise my Credit Score to qualify for good rate. This shouldn't take long because my credit is not that bad and have low cost of living. 

My issues are:

1. I won't have alot of money to pay down on the property because I used it to pay down credit cards.

2. Investment properties in this area are profitable but pricey. All over $200,000, which means 20% down is alot of money.

3. Already on FHA and my husband doesn't want to move into another ( I may convince him if it's significantly bigger or nicer). For this reason, it would be considered totally investment by financing standards and that's more down payment required.

4. Thought about Home Equity Line of Credit but not sure if it will be enough for down payment. 

5. Should I have home appraised to learn how much equity is in property? Should bank appraise or should I pay for appraisal?

What should be my next move? Any advice. When giving advice, please keep in mind that I am a small timer with limited resources and not as much knowledge. I know a lot of you are well-seasoned investors. 

BiggerPocket friends, thanks in advance.

@Jen L. I used an experienced Handyman instead of a contractor. He was referred by a close friend. Contractor prices are usually inflated and I wanted to save money. He charged me $900 for a 900 sq ft apartment and I bought the paint. Florida is definitely cheaper however painting is not a hard skill like plumbing or electrical so I knew I wouldn't spend too much and I would do it myself if I REALLY had to. Thumbtack is a great tool if you need affordable repairs or Reno in a pinch.

Hi Jen L.,

Your question actually gave me a jolt of excitement because I thought I overpaid on my reno. My tenant just moved out after 10 years in my unit. It cost me a total of $3,000 to renovate the place good enough for the new tenant. I used all of my tenants Security Deposit ($1,200) which left me with $1,800 out of pocket. My former tenant smoked cigarettes in the unit and the smell was unbearable. Had to paint 3 coats to eliminate smell in addition to holes in wall and other minors. I live in the Davie, FL area by the way. I charged $1,200 for rent and raised it to $1,250 for the new tenant. I inherited the lease when I bought a year ago and so I didn't have much say so on my tenant. I now made a new lease that's air tight about maintaining and cleaning the unit. I got burned because I didn't have enough reserves. I now know to ALWAYS have at least $3,000 in reserves for the unit.

For the reno, just know that it is a one-time reno, if you do it right. Anytime after, will be just a cleaning and maybe some paint here and there. For my reno, I went to home Depot with my handyman with a checklist. I checked on his progress everyday. I added or took away projects depending on cost or time. The complete reno took two weeks. Needless to say, I had one month of vacancy, but it was worth it! I don't expect to spend this kind of money again because my new lease is air tight and my new tenant is a referral from my fiancé's mother. I'm a hands-on (watch every penny and vendor when they work) landlord and that saved me a lot of money.

Hope this helps!

Post: Bought A Owner Occupied Duplex, Now What?

Jheanell R.Posted
  • Fort Lauderdale, FL
  • Posts 15
  • Votes 1

Hi Guys,

Thank you so much everyone for your input, it's been a big help. I've been thinking (and researching) and thought that my next move should be to refinance this duplex to a conventional and then buy another multifamily using FHA again. I would live in it of course. Do you all forsee any issues with this? FHA allows a second loan if the first is paid off right? I'd still get the 3.25% down option right? That would mean little money down and still receiving income from first property to cover any loose ends. I value all of your opinions and expertise.

Post: Bought A Owner Occupied Duplex, Now What?

Jheanell R.Posted
  • Fort Lauderdale, FL
  • Posts 15
  • Votes 1

Hi, 

Just want to say that Bigger Pockets have been such a great resource for me as a new investor. I've read a lot of forums and I'm almost finished with Brandon Turner's No Money Down book. 

I bought a Owner occupied duplex in Broward County Fl almost a year ago using FHA. I live in one Side obviously. Based on recent sales in the area, I've estimated that my property value went up about $58,000.

I would like to buy a second Property but I don't have much money. What would be the next move? Based on Brandon's book, I'm thinking I could do a home equity line of credit for a down payment. However, I went to my step moms old bank (she used to be in banking) and they stated I'm eligible for only $16 to $17k don't think that will go very far in Broward. Any other options for me? I want to buy another duplex. Should I wait a little longer? Buy a condo? Help!

Lastly, I LOVE investing and would love a mentor or networking event. Anything in Broward?