All Forum Posts by: Joel Calkins

There are always going to be hot markets in different areas and I don't doubt there are similar opportunities in Texas.

It may make it difficult to start out in Michigan being a long-distance investor. You have to deal with property management companies that eat into cash-flow. If I were you I would emulate your friend's strategies and apply them to local hot markets. 

Good luck!

Hey Chase, Great question!

There are a couple of ways that I use to analyze rents quickly.

1. Rentometer is a good website that looks at comps in the area you choose.

2. Look at Craigslist listings to see what rent prices are for similar duplexes.

3. Biggerpockets Insights will be the quickest way I found to get fast and reliable rent prices.

Some of the streamlined databases like Cozy, or BP insights will cost money but also save precious time when analyzing deals.

Good luck!

Hey Braxton, Great question!

In most states, there are tenant rights that won't allow you to remove a tenant solely to owner-occupy. The lease will stay in effect even when you buy the property and the tenant has the right to stay until the agreement expires. This usually makes the marketability of the properties less attractive.

It is generally not advised to try to assume a lease from a tenant especially if your state has favorable tenant laws. 

Also, consider that to a lender a 'Sitting tenant' is deemed to be a higher risk so procuring a loan could prove to be more difficult. 

Great question James!

One way I have found to develop that "Knack" for evaluating rehab cost is walking through properties with a contractor. If you're looking for a low-cost method maybe find a family member or friend with experience in rehab, construction, or has rehabbed their own properties. Unfortunately like many things this skill takes time to develop yourself.

You can also try the BP method for quick calculations when running multiple properties. I love this method for timely analysis.

"To estimate the rehab cost, multiply the square footage of the property by the rehab cost per square foot. For example, the property is 1,500 sq. ft., and the cost of rehabing your area is between $15-$30 a sq. ft."

An FHA loan is going to be significantly more difficult to obtain without a W2 or constant income. Unless you have a large downpayment and outstanding credit it will be difficult but not impossible. If you can prove to a lender by some other source of income that you can make a monthly payment you have better chances of procuring that loan.

I would also keep in mind that sellers don't usually favor buyers with FHA loans over conventional loans, especially in a hot market with plenty of cash buyers.

You will need to ask yourself a couple of questions in order to get the ball rolling on a potential purchase. 

Such as:

What is my debt to income ratio? (Preferably under 35%)

What is my credit and how can I improve it? (As of 2020 your FICO must be 580 or higher)

How will I procure the income to make the monthly payment?

Good luck!

You could consider using a Home Equity Line of Credit especially for buying investment properties in need of renovation. Depending on creditworthiness and equity in your current properties Some of the rates for HELOCs I've seen are as low as 3%. 

As a new investor, I feel like the FHA/203k is the way to go for a possible multifamily house hack. I'm wondering if there is anything to stray away from or maybe tips/tricks? And when it comes to renovations do they have to be done by a contractor or can I do them myself?  Also, how do I know what renovations are right for my area to force appreciation? 

I'm only 18 and have virtually no access to a loan nor can I afford the interest of a hard money lender. What did you use to gather capital to close a deal?