All Forum Posts by: Jose Batista Abikarram

Yup @Daniel Kim is correct!

Looks beautiful and hay congrats to the starts. You don't know the amount of people who read and do nothing. I am sure the lessons you learned with this deal will be more valuable than anything in books and it sounds like a good first step towards FI. If it ever gets vacant I would recommend looking at other options to increase cashflow such as STR.

Hey @Hani Alomar. I am sure you can find something very detailed but I think it might hurt more than it would help. The last thing you want to do is planning paralysis. One thing I learned this past weekend is that if you are not making offers you are not making money. What I would do is follow a few rules of thumb to weed out potential deals and then make offers. This would be my simple checklist (in order):

1) Pre approval to see what price you should look for

2) 1% rule (might not work in SFM, but you could lower the standards if so or look in locations in the pass of progress)

3) See if you like the investment in terms of location/number of headaches (profit vs comfort)

4) Make an offer with at least inspection contingency

5) If offer is accepted do your due diligence to make sure the deal works (for this part I do recommend a detailed checklist, the link below has a link to one I have used before

https://www.coachcarson.com/free-tool-kit/)

Good luck!!!

Hey @Dolly La Salle. It seems worth it for the summary but I am a little bit worried for two of the numbers you have in there.

First one is the down payment. Unless you house hack the minimum a lender will let you do for a multi unit conventional loan is 25% instead of a 15% so that would make both your ROI and cashflow decrease a little bit.

Second one is that the insurance seems too low for a duplex. Maybe they are that cheap in the south but it may be worth to actually quote it and call a few companies.

Good luck!

I would recommend adding Your money or your life. Its a short read (you can skip the last chapter) and gives a pretty good overview on FI and what is "Enough". The summary idea sounds great. I am writing notes as I go along so would chime in and add what I think is important as well!

Some banks may accept a 10/10/80 kind of deal. I would talk to a few loan officers to see what products they offer to help reduce the down payment. But I am not sure they exist. Let me know how it goes!

Hey @Rick DiAgostino I am going to be in the same situation pretty soon. My plan is to take the rent that should be flowing from my rental and put it in the bank account as it was actually rented. I am not positive you can count it as a tax income but at least it will help you save and keep all the money from the business in one bank account. Also I would set up that account to pay the mortgage so you have it all in one place. As a home occupant you cannot do an LLC so try to connect with a credit union so you are ready when the business starts running.

Streamlined solution: 

https://www.biggerpockets.com/settings/alerts/new.

Long solution:

1) Go to the bell icon

2) Click Keyboard Alerts

3) click small gear icon on the topish right side 

If you can house hack the best option is FHA even with the penalty of the MPI because you only need to put a 3.5% the cash flow you loose is negligible to the ROI you will be making due to the low money down. Other than that the other thing you could try is buy a bad shape multi unit with a hard money loan but I would not recommend that if you are just starting. Good luck!

Hey @Michael Piggott. This is a fair question and I actually heard the latest BP podcast that talked a little about this problem, I will leave the link here so you can listen to it fully: 

https://www.biggerpockets.com/blog/biggerpockets-podcast-349-nathan-tabor

In my opinion there is no way of knowing if the market will crash now or in 10 years from today, but knowing that it is an extremely hot market and more and more people want to get in I would be a little bit more afraid. I am currently looking for BRRRR deals but I would try to stay away from jobs that would take too much time (more than 3 months) just to cover some of the potential volatility of the market. However if your numbers look great and you have the money and the time I say go do it. Even with a BRRRR deal and a market crash one of the worst things that can happen is that you do not pull out as much money as you expect it on the refi in which case you keep the building for longer and make it out with cash flow.