All Forum Posts by: Account Closed

Then, use a 3.5% down FHA loan for the new property. FHA can be used for a 1-4 unit property (SFR, duplex, triplex, 4plex) & you are required to live in 1 of the units for 12 months, then you can refinance into a conventional loan & rent out the unit you were in to an additional tenant.

6 Votes

Immediately call all of the credit card/loan companies and say "I need help." Ask them to lower your interest rates. Additionally, can you get a 2nd job or increase income at your first job?

1 Vote

Originally posted by @Josh Kundrat:

Those terms are pretty awesome, I wish I could find a deal like that. You should use the bigger pockets rental property calculator to analysis the deal in detail and get a better idea of what you might be looking at in terms of net profit. If can get a list of ACTUAL expenses, this can give you even more insight. You should also start interviewing some property managers, even if you don't end up using one you can at least get some information from the them like the vacancy rates in the area. Another thing you should do is get all of them inspected, this will also tell you what kind of capital expenditures you might be looking at the near future so you can budget accordingly. But sounds like great deal man good luck!

Agreed. Become a Pro member of BiggerPockets and get unlimited use of all calculators. Good luck.

0 Votes

Of course it's a good place to start, but if a flip goes wrong, you could go from having "not much money" to zero and in debt. Don't let this discourage you. Read J. Scott's books: The Book on Flipping Houses | The Book on Estimating Rehab Costs http://get.biggerpockets.com/flippingbook/

You should first partner up with an experienced flipper.

Alternatively, you could owner-occupy 1 unit in a 4-plex by using an FHA loan to put down 3.5%; after living in it for 12 months, move out and rent the fourth unit. Then do it again, if you'd like.

2 Votes

It sounds like you already know that you need to make the switch to the job that offers overtime.

You are humble in admitting your hardships and asking others for a helping hand.

Best of luck to you and your girlfriend.

As a side note, consider any kind of jobs where you could increase your income (ex. retail or office work). Then, hopefully you wouldn't need to work more than 40 hours a week.

1 Vote

Originally posted by @Justin Young:

Originally posted by @Account Closed:

Originally posted by @Jonathan Studdard:

Thanks for all the input guys. My family I'm referring to is basically my fiance, who since reading all your great responses, has agreed that paying our mortgage would leave us nothing for a rainy day, and nothing to grow any wealth with (unless we used a HELOC). We've both realized that our interest rate is so low that paying it isn't really urgent, and we both like the idea of putting $50,000 aside for the rainy day much more than $10,000 (which disappears quick these days, especially if business goes south). If we use $90,000 to pay down half the mortgage and save $50,000, then we can invest $60,000 and still refinance and take out a HELOC. I guess my question becomes, "Can I create the cash flow I want fast enough with $60,000, or should I use more of the cash to get me where I want to be quicker?" As long as we have a healthy enough chunk for savings, the most important thing to us is the financial freedom that comes from more monthly cash flow.

For every $100,000 you invest, you should aim to get at least a 10% return ($10,000 annually) divided by 12 months comes out to $833 in cashflow a month.

Also, refinance only gives you up to 70-75% appraised value back, so if you buy a property in cash for $60,000 then refinance after 6-12 months (minimum wait period), you'd only get between $42,000 and $45,000 back.

Good luck.

Is it not true that appreciation "could" increase the amount that someone receives after a refinance? Appreciation is not a guarantee so I stress the word "could".

It is true that appreciation (or even DEpreciation) comes into play. That's how the second to last 'R' in Brandon Turner's BRRRR strategy works. Again, I stated that the refinance goes off of the appraised value- this is exactly how people who flip a property & rent it out get their initial down payment out & continue immediately investing.

https://www.biggerpockets.com/renewsblog/2015/04/20/how-to-100000-dollars-year-real-estate/

0 Votes

All Forum Posts by: Account Closed

Account Closed has started 9 posts and replied 88 times.

Post: I have $15k, what should I do??

Post: What would you do with 15k?

Post: Setting up DBA / Bank Accounts for 2 properties

Post: Does REI mix with Travel Hacking?

Post: Where to start? 20% down is killing me & a bit overwhelmed!

Post: Purchase Home, Consolidate 15k Debt, or Purchase Rental Properties? Maybe ALL 3

Post: Need Advice - First Deal - 28 units, Owner Financing

Post: Strategy: Flip for Cash and then Buy & Hold?

Post: Credit Card Debt Options

Post: Pay off my mortgage or invest?