All Forum Posts by: Joel Calkins

Hey Matthew, Great question!

This is mainly going to depend on your personal goals and what you want your portfolio to look like. There are plenty of avenues to go down in real estate and every one has its upsides and downsides. One of my favorite methods is the classic house-hack in MFRs. Having such close proximity to the unit you can monitor your investment and learn valuable insights. Most likely the rent from the other unit will pay the mortgage and put you on a path to finding your next deal with the valuable knowledge from the house hack. Another great way is the buy, rehab, rent, refinance, repeat method, or (BRRRR). There are plenty of articles on BP about this strategy.

If you have any questions feel free to PM me. Good luck Matthew!

Unfortunately, the mortgage banker is correct. If you're applying for any conventional loan from out of state the first thing a lender will ask is if you have a job lined up or if you plan to work for a current employer. This being said if you can prove to a lender that you have a different stream of constant income that could cover a monthly payment you may have better luck of obtaining a loan. 

As for seller financing, this is a whole different animal. If you can find someone who's willing to seller finance this could be a great option. Usually, there are low closing costs, fast closes, and flexible down payments since you're not dealing with the bank. Most likely this deal won't be easy to find and many sellers will still run credit checks and proof of income. Make sure to do plenty of due diligence on the implications of seller financing!

Hopefully, this helped you out. I wish you luck Sergio!

Before you consider renting by the room it's important you're not breaking any laws or regulations in your area. There are plenty of CC&Rs that can hinder your progress. 

Renting a room has similar standards to a regular SFR lease. There must be access to the room, privacy, heating, and cooling. Similar to renting a unit/house a tenant can be evicted and replaced with a lease agreement.

From a management perspective renting by the room is similar to an SFR/MFR.

Many of the expenses are tax deductable such as:

-Utilities 

-Maintenance or cleaning fees

-Repairs

-Mortgage interest

Therefore you need to carefully monitor your income and expenses to reduce your tax liability. As for bringing new tenants in that's up to you and your marketing strategies (Facebook ad, yard sign, craigslist). Renting by the room is an amazing way to dip your toes into the house hacking world just make sure to do your due diligence!

I hope this helped!

What specific path of investing are you interested in? Wholesaling, salesperson, multi-family? Maybe if you're unsure of what path to go down research what each method of investing will most align with your goals.

Hey Amalio, Great question!

Being new in the REO game can be tricky so it's good to do plenty of due diligence before stepping up to the courthouse steps. First of all, foreclosures are a great way to get a good deal in hot markets (If done right). If you're interested in buying one I recommend going to the physical location to make sure the property is still standing. Kick the tires and maybe ask neighbors about the history of the house and its residents. It's important to understand that many times a person who is getting foreclosed has no incentive to take care of their property and this can be a nightmare when you first step in the door.

How the buying process works:

1. In an auction setting most times, you won't be the only one there. Most auctions only take cash (cashier's check, cash, or money order) IN FULL but if there is an option for a mortgage then get your pre-approval done early.

2. Have a set limit you are willing to pay for the property. A good rule of thumb is to pay 70% of the property fair market value.

3. Once you get an auction bidding card if you successfully win the property payment is usually due immediately. After you pay for the property you can expect a certificate of sales or some sort of receipt.

4. Wait for the transfer of title. Its important to not do any work on the property before you receive the title, this is because the owner can file an objection and pay the amount owed in full.

It can be intimidating and difficult but also an amazing way to procure a good deal. There are plenty of websites that list foreclosures as well as pre-foreclosures. 

I hope this helped. Good luck with your search!

This very well could be dependent on your market but in general, I would say no. The retail market is entirely independent of the real estate market. However, listing your home around the holidays may drive away the competition and bring in more serious buyers. It also could give you an opportunity to decorate or spruce up your property to make it more attractive to potential buyers.

I hope this helped, Good luck!

Add some details and I would be more than happy to give my two cents!

There are plenty of upsides and downsides to condos and it all depends on what you want your portfolio to look like and the potential of scalability.

Starting with the upsides:

1. The ease of maintenance is convenient 

2. Typically condos aren't as hot of a commodity so there is more negotiation and wiggle room when closing a deal.

3. Tenants usually like the amenities included such as parks, pools, gyms.

4. Much cheaper than an SFR or MFR

Now some of the potential downsides:

1. Poor management and high fees can eat into cash flow

2. Joint tenancy can cause problems. Noisy neighbors and so on.

3. Virtually no opportunities for ADUs or adding square footage

Depending on your REI strategy this could be an easy way to dip your toes into real estate. Or a money pit.

You could consider an FHA 203k loan. This will fund the rehab and mortgage rolled into one monthly payment. It does take more work to find contractors that will work with you because it often includes more paperwork, an appraisal, higher interest. However, it's a good option to force appreciation while having low money down.

They will usually average your last 2 years' income and unemployment income unfortunately is excluded. This may lower the amount they will lend you. I have had that problem myself. Once steady earnest income starts to flow in, and your credit is established your lender will be more likely to approve you. 

I hope this helped!