All Forum Posts by: Jordan Hamilton

Prices sky high since this post. If you bought anything you would be golden right now.

@John Teachout just response yet. Your right.

@Timothy Lewis it's a legal duplex with an extra unit that's technically illegal. Yes I'm aware of the hurdles of FHA.

@Justin Koopmans good point. Need about 10k in exterior work (paint the building, pressure cleaning etc). I would hold this for 10+ years.

Hey everyone, it’s been awhile since I posted here and really need some advice for my first deal in the Miami area (allapatta). I have been searching high and low for a deal that cashflows and I finally found one. It’s a legal duplex with an extra unit here are the numbers:

> purchase price: $400k

Income

> unit mix: (1) 3 bed 2 bath, (1) 2 bed 1 bath, (1) 2 bed 1 bath

> rents per month: 3/2 $1650 - 2/1 $1550 - 2/1 $1350 TOTAL: $4550

> financing: FHA 3.5% down

Annual expenses:

> mortgage and interest $19,205

> Insurance (home owners and PMI): $9,600

> property taxes: $6,800

> water and sewer, lawn care, trash: $5,600

> management (5%): $2,593

> vacancy: $2,730

> TOTAL expenses: $23,323

Annual Returns

Cashflow: $8,071

Principle pay down: $8,235

Cap rate: 6.82%

Cash on cash: 57%

I it's been nearly impossible to try and find a deal that meets the 1% rule and cash flows. I've given up several great deals in great areas because they end up being cash flow neutral or cash flow negative. My goal with FHA financing is to live in the unit for one year and then move out. For the analysis above I count myself as paying rent in the cheapest unit. My question is what do you guys think about the deal and the returns? Ideally I'd love to buy a legal triplex but it's extremely hard to find. I know we will need to remove the kitchen when it's inspected so it doesn't look like a unit etc.

Would you guys jump on this? Its about 50k overpriced compared to comps in the area and it does appear to need some minor exterior work.

Any advice greatly appreciated!



He said he only needs 1 month of w-2 income at a new job to qualify me FYI

 Everyone I think my mortgage lender has found a way around this. He says if I become a w-2 employee of a company I dont own I could use this income to qualify for the mortgage. With all factors included and a monthly w-2 income of 5k I can qualify with a 470k property. 

Hi everyone,

I have spent the last 6 months saving about 60% of my income so I could finally move forward with my first multifamily property. I saved 30k and plan on using FHA loan to house hack one of the 4 units (looking at a 4plex). I recently went to a mortgage lender and asked for a pre-approval. After sending personal and company tax returns he said because I am self employed for 2 years and my tech company "reported" a loss on our federal tax return for 2017 and 2018 my personal income wasn't high enough to be approved for the property I want (listing price 320k). Keep in mind I am buying real estate that will cash flow and will hopefully increase my income in years to come. Only went to this one lender called CapHouse Financial for the pre-approval who was highly recommended from Sotheby's.

In my mind I have a few options. Pick 3-4 lenders and apply for a mortgage approval all at once and see if I get approved. If I don't get approved maybe have someone who does meet the requirements sign with me? What are the negatives to having a relative or business partner sign (just for mortgage approval and not financial reasons)?

I'm not giving up!

Hi everyone,

I have spent the last 6 months saving about 60% of my income so I could finally move forward with my first multifamily property. I saved 30k and plan on using FHA loan to house hack one of the 4 units (looking at a 4plex). I recently went to a mortgage lender and asked for a pre-approval. After sending personal and company tax returns he said because I am self employed for 2 years and my tech company "reported" a loss on our federal tax return for 2017 and 2018 my personal income wasn't high enough to be approved for the property I want (listing price 320k). Keep in mind I am buying real estate that will cash flow and will hopefully increase my income in years to come. Only went to this one lender called CapHouse Financial for the pre-approval who was highly recommended from Sotheby's.

In my mind I have a few options. Pick 3-4 lenders and apply for a mortgage approval all at once and see if I get approved. If I don't get approved maybe have someone who does meet the requirements sign with me? What are the negatives to having a relative or business partner sign (just for mortgage approval and not financial reasons)?

I'm not giving up!

@Evan Evans have you considered going bigger into an apartment building? 500k down payment could buy you 2.5M apartment building with 1 roof, 1 mortgage, 1 property management company, etc. May be a more passive option.