All Forum Posts by: Josh Foret

 Rates are quite a bit different. Think i'm gonna go with my gut it pass. Thanks for your feedback!

The home was built in 2010 and is in foreclosure. It also isn't complete. Plumbing and electrical work are needed. 1 bed, 1 bath. According to the realtor, It'll take about $10k-$20k to be ready to rent. Planning to live in the home while it's being fixed up. Should be able to pick it up for about $60k (or less). The home, when rehabbed, will rent for $1100.

However, the home is surrounded by mobile homes. Not that I'm opposed to mobile homes in the slightest, but it is relatively strange to see a single-family in the middle of many mobile homes. The neighborhood has paved roads and looks pretty nice aside from the occasional beat up property. A few streets over is a very nice neighborhood. This particular city is growing and fast.

Would the home being surrounded by mobile homes prevent you from picking it up? 

In BP Podcast 108 Grant Cardone says to "stay away from single-family homes." 

Why is he so opposed to investing in single-family homes?

I am unable to qualify for an FHA loan on my own. The good news - I have a co-signer. The bad news - I will have to put 20% on the duplex instead of 3.5% since I am in need of a co-signer. That'd be tying up quite a bit of capital I was planning to put towards my first flip.

This really throws a wrench in my house-hacking plan. 

However, if I purchase a single family home FHA with co-signer will allow me to get away with 3.5% due to the fact that it isn't multiple units.

Assuming I'm able to find a solid single family and rent it out, could I just live in the flips while rehabbing?

On a budget like that you just can't beat a Mazda Miata. Hell, on just about any budget a Miata can compete. If you haven't driven one, give it a shot. I've owned quite a few vehicles, including more high-end sport model BMWs, and there's just nothing like driving a Miata. 

Extremely reliable (extremely), fuel efficient, and FUN. You won't feel like you've given up anything at all. 

@Scott Trench Thank you for your input! Based on your recommendations along with @Darren Sager's input, I'm closer than I had thought after reading some of the other replies. 

I like your perspective, Scott. While real estate does provide shelter, it truly is a business from the investor's mindset. If I were able to increase the amount of the loan in order to cover a few of those upfront costs you mentioned, would that give me more flexibility with regard to savings?

@Joe Fairless Thanks for the suggestion, Joe! Hopefully I'm able to get into a property sooner rather than later, but I should probably get familiar with wholesalers in my area anyway. Do wholesalers tend to deal with foreclosures? Anything outside of a foreclosure in this area is likely outside of my price range.

@Darren SagerYou moved out and then rented out both sides? Would that be a good option to consider since I have a private loan? Perhaps renting out both sides and then securing an FHA loan with 3.5% down for my actual living space?

@Darren Sager Thanks for your insight! Wasn't sure what BoM stood for then I remembered your podcast. Luckily, I have great favor with my BoG. :) I have a little experience working on cars as well. Tend to be a bit of a DIY guy when it comes to projects like that. Hopefully that will work in my favor. 

I don't remember if you gave any details on this in your podcast, but looking back can you see any way that you may have been able to hold onto your first property? Was it a vacancy that caused you to lose it? 

Thank you all for your responses! @Mindy Jensencan't say I'm too comfortable fixing up a property, however, there are a few foreclosures to be found around here every now and then. That'll likely be the direction I go with YouTube repair guides to light the way. :P 

@Hattie Dizmond I like the point you've made about securing the loan. That was definitely looking to be the biggest challenge, and it's one less step I'll have to take. 

@Arun Chandra not to mention the "Five Billion Dollar Mile" on its way. Unfortunately, I believe you're right. I'm going to focus on stabilizing my income even if that means a 9-5. I tend to stay very very far ahead on any sort of payments, but this will definitely be the largest debt I've taken on in my 23 years. 

In the meantime would it be worth browsing even though I'm not planning on making any offers at this time? I'm guessing I shouldn't bother my realtor friends until I'm ready to move on one. 

I've read several of the blog's with regard to "house hacking" including @Scott Trench's experience with his first property as well as @Darren Sager's podcast on his duplex ventures, and I've decided this is the path I'm going to take. 

My income is relatively inconsistent, as I own an e-commerce business that has its ups and downs. However, I am preparing to launch a product line that should (hopefully) stabilize that a bit. 

I was able to secure a private loan that will cover the cost of my first property. How critical is a strong source of consistent income when investing in my first duplex? I've spoken with several realtors in my area (DFW, particularly Plano, Allen, and McKinney) that suggest if I wait much longer, prices are only going to go up and up, limiting my options. 

Essentially, I'm sitting on a private loan, no debt, $5k in savings, and time. Should I get moving and make offers, or is my cushion too weak?