All Forum Posts by: Jordan Townes

im new to this just bought first duplex and am house hacking. been keeping up w bigger pockets and before that dustin heiner' podcast. being green, even i know that you never buy/acquire negative cashflow. thats just dumping money down the toilet. second, every real estate guru will tell you never bank on appreciation. thats gambling. home prices are at an all time high, if nything you bank on your property depreciating some and then returning to purchase price HOPEFULLY. you imagine your worst scenarios, lowest rents, longest imaginable time of vacancy, most drastic uncovered repair/situation, over estimate expenses. create your buffers. if the numbers still work then, then you buy. if the numbers work and you casah flow $250+/month i say go for it. it hard to get above that without significant down payments or finding a rare steal. at this time i think best value and only way to guarantee any kind of appreciation is to buy low and rehab. 

New real estate investor here. I inherited the home I had been living in from my mother which needs some repairs in order to be rental ready- no mortgage on it. I purchased a duplex in May of this year and moved into the bottom unit with the intention of renting the top unit as well as the sf I moved out of which would put me in positive cashflow (the top unit of the duplex does not cover the duplex mortgage entirely on its own). I am now in a position where I am trying to get a HELOC on the sf to make the repairs but the real estate taxes that were passed on to me are on a payment agreement. The agreement includes prior and future tax years automatically so as long as I pay the monthly amount the taxes are considered in good standing. The total tax balance is about 18k. Even with the new retal income lenders are denying the heloc due to the tax balance despite providing copies of the agreement and letter from the department of revenue which says I am current on the agreement. It was suficient/accepted by the lender that granted the mortgage for the duplex, so I did not anticipate running into this issue trying to get the heloc. I asked if that could be a condition of the loan that the taxes are paid out of it first. \i was told "that's not possible because can't escrow the real estate taxes".

I don't know what this means. Are there lenderss that WILL escrow the taxes and approve the heloc? What other oprtions should I be pursuing instead? I didn't want to pay the taxes at once if I didnt have to, I'm loving the agreement of course.

not to mention where are your reserves? stacks of capital for unexpeeccted repairs, zoning, headaces you simply can NOT forse e until it happens, and 6 months of the mortgage in reserves for vacancy/ job loss. 50k an d8k in credit is mayb safe to by 1 property. that 38k you think is left, not nearly that will be left over. so what is leeft..... theere are your reserve. you have noting left to get another property

 It's the planning to buy 10 property in a year with only 50k in savings and 8k in credit lines thats blowing my mind. I'm new to this so maybe it is not impossible. If you are successful id love to hear about that first year. Me-- i just purchased my first duplex (after researching in anaysis paralysis for 2 years) to house hack and rent out the top unit. with putting 60k down including closing costs it still would not cash flow until i move out of the 1 unit. I am basically end up ina  nice size apartment with yard for about $500 after top unit goes towards the mortgage. However, this is allowing me to move out of the SF townhome my mother left me which will rent for $3k once rehabbed. 

My point is to say i make about 84k with w2, had 27K in availabe credit, 60k+ saved from retirement,  and i coudnt even BEGIN to fathom buying the next one so fast. i dont know what your inccome is like, that would be a big factor. my issue now is qualfying for another loan even a heloc i am having a hard time with because banks are only going to cconsidder part of your rental income and the 1st mortgage you get will liely disqualify you from getting the next mortgage. its currently keeping me from getting even 25k to make repairs to the sf.

anyone have advice for me lol

so why are you people that already sunk 40k into this not paying a little more a getting a  lawyer?