All Forum Posts by: Jon B.

Mortgage interest is a tax write-off, car interest isn't.

@David Zheng Great job man.  I read a previous post of yours on how you started out and were off to a tremendous start, and now this!   You really need to be a guest on the podcast someday.  It'll be a must-listen to in my book. @Brandon Turner @Joshua Dorkin

@Steven C. Suarez I'm in a similar situation as you with a career with unlimited OT.  Right now I'm logging anywhere from 60-120 hours a month of OT, and find it hard to scope out deals because on my days off I just wanna relax.  However, the OT won't be unlimited forever, so as of now I'm getting as much in as I can and build up my bank account which in return will set myself up for a better scenario when I do choose to start investing in real estate.  In the meantime, I'm continuing to scope out deals online as a hobby and continuing to educate myself.   Best of luck with the little one, mine turns two soon :)

What do I think of East NY??  These are your potential tenants, and the environment the neighborhood is saturated with.  Good luck.

https://www.youtube.com/watch?v=dwiRrK4lGzQ

Buy first property

 10-4.... I 'followed' you on here, maybe that'll help with sending PM's on here since neither of use are paid memberships... Never did PM's on here before.

Hi @Account Closed and thank you for offering your help with us newbie investors.

I'm looking to purchase my first property in the coming months, and have been looking at Orange County, NY.. In particular Port Jervis and Middletown. I'm looking to start off by getting a multi-unit property financed thru FHA, and living there for a year and then venture off into cheaper properties upstate in areas like Kingston, Albany, Troy, and Saratoga Springs. What areas of upstate NY do you have experience in? If you have any experience in these towns, would they be good for a rehab flip, buy and hold rental, or a BRRRR?

Also, a question that I've been trying to research lately is what fees can and can not be rolled into an FHA mortgage upon closing a deal? I have good cash reserves but I want my first deal to be as cheap as possible out of pocket so that I can ensure 25% down payment on 1 or 2 properties once the 1 year wait time in the FHA property is complete.

I have spent a few months doing a ton of research into books, blogs, podcasts, forums, and just crunching numbers to project cash flow after all expenses.  I'm determined to succeed in real estate as it seems no matter which way the market and economy goes, there's money to be made in either cash flowing properties or a rehab flip.  

Thanks for making yourself available to us newbies!

I've read in numerous areas that Memphis is a great city to invest in for rental cash flow properties.  While browsing thru some properties, I must say: Wow

As a New Yorker where $2,000-2,500 rent is common, I'm shocked to see that just a couple months rent will cover a years worth of expenses in a multi-unit property in the Memphis area.

My question is.... Is a deal like this, too good to be true??  

While browsing, I saw a property that seems to have over 100% cash-on-cash return.  
Here are the numbers.

List price: $30,000
Down payment (25%): $7,500
Mortgage: $108/month - $1,296/year
Taxes: $1,684
Insurance: $750 (estimation)
Lawn: $500
TOTAL: $4,230

This property is a duplex and is currently rented for $700 per unit.
Rental income: $16,800
Budget 30% for property management, vacancy, repairs, cap ex will leave with,,
$11,760

$11,760 - $4,230 = $7,530 yearly cash flow on a $7,500 down payment

$7,530 / $7,500 = 100% COC!

@Derrick Dill  Safe to assume that 6 months of payments saved is adequate?  I have no problem with occupying again for a year.  Also, the property will be in the same region, likely even a closer commute to work.

I would like to purchase a 2-4 unit using FHA, live in it for 1 year... refinance out of it... then purchase another 2-4 unit using FHA and repeat.. I have no issue with living in a new property every year for about 3-5 years if it means a good healthy start to a real estate career.

I was curious if the following scenario is possible (and legal of course)....

If I were to purchase a property using an FHA loan, live in the property for the required one year, then refinance out of the FHA loan into a conventional loan; would I then be able to then purchase another property using an FHA loan?