All Forum Posts by: Jonathan Burmenko

@Parker Butler There are plenty of options to get around the employment history when your first start. Take a look at seller carry deals as well as hard money lenders. Can always look for a partner who can qualify as well.

Good luck!

@Annie Stark It's the cost of doing business. You don't get a refund but you learned something of value to look for in other properties.

@Angela Brooks I may be biased here but I would recommend hiring an experienced agent in your area to take care of the sale. They will make you the most money and understand the current and tricky environment we are in with COVID.

@Anna Marie Nguyen Definitely get your own legal advice with the LLC, but why are you hiring a PM? If you live there it shouldn't be hard to manage, save yourself the 5%-8% a PM costs and put it into reserves. You can always contract out the repairs to a handyman. Then when you move into the next rental you can create an LLC for this one and hire a property manager.

@Tom McCabe Congrats! Sounds like a great opportunity for you to get into investing. I would add maintenance, reserves, and insurance to your expenses and factor a percent for vacancy to get an accurate picture of your cash-flow. Also don't forget your MIP (Mortgage Insurance Premium) when using an FHA loan.

@Garret Myers Ah HOA's. Have you thought about selling and buying a pure investment property that will cash-flow? Or buying a duplex and living in one side while renting the other outside of an HOA. Those fees eat into your cash-flow.

@Giuliano Solger Depends where you are located but some expenses to include in your underwriting are: Property taxes, insurance, maintenance, reserves, utilities (gas, electric, water, sewer), trash, and landscaping. Also factor in vacancy in your gross rents. In your due diligence period you can ask for a recent P&L statement to see how the property is actually operating.

@Shakira Patterson There are plenty of ways to creatively finance a property, although many of the low down payment options such as FHA 3.5% of 5% conventional are owner-occupant loans. This means you would need a vacant unit and live in the property for the first year. If the property is fully occupied and you can't get a vacant unit you will need traditional 20% or more down to purchase, may want to ask around if anyone would want to partner with you.

@Junior Nguimi Shop around to smaller lenders to see what deals are out there. There are options out there that don't need great credit such as an FHA 3.5% owner occupant loan, just remember you will have PMI and a higher mortgage payment because of the high LTV. If you are not comfortable with that you can always wait until your credit rises and have 20% - 25% for a conventional downpayment.

@Arby Gharibian There are a few key items to ask in regards to buying a property that already has tenants in place. I would ask for the current tenant profiles, rent collection history, any incidents in the past with tenants. You definitely want to get copies of the signed leases and read through them. Along with leases you can also ask for tenant estoppels for all units before you close on the property.

@Brandon Turner Wrote a great article on handling inherited tenants here: https://www.biggerpockets.com/...