All Forum Posts by: Josh Garner

@Erik L Ostlund I'm happy to get you connected to folks in the industry here in Bend, if you'd like. PM me and let's chat!

1. I think it works out great. Affording their new mortgage on their current income is not the issue....most are used to paying at least that much in rent. Coming up with the down payment needed relative to current home prices is much more difficult now than it has been in a long time.

2.I believe there are several advantages in going with conventional, if you can. I would aim for that, if possible. Many conventional programs have low percentage down payment options, similar to FHA's 3.5% down. I think Conventional loans are a little friendlier in terms of Mortgage Insurance premiums, and the ability to transition out of paying them once you have 20% equity in the oroperty

Also, if the home purchased (or refinanced) is your primary residence, some guidelines now state that 100% of rents received can be income used to qualify. For investment properties (Non-Owner Occupied), rental income used to qualify is nearly always capped at 75% of rents received.

As a lender in an expensive market, nearly all of my first-time homebuyer clients utilize gift funds or co-sign from family to purchase a home. Even with frugal living, most these days are not able to save up $50-$100k down payment on their first home in my market. Also, some conventional loan products will now count 100% of your rents towards your income used to qualify, if the rents are gained from your primary residence. Rents gained from an investment property are almost always capped at 75%. 

Hi Ronald,

although not a licensed contractor, as I understand it new construction in the Central Oregon area is being built for $200/sf on the lower end, up to $500+/sf on the higher end. Land costs are also quite high. In a good area of Bend, a lot just down the street from me (3900sf lot) sold last year for $250,000.

There's a severe shortage of builders/contractors/skilled laborers around here.....lots of folks are making $40/hour to hang drywall, paint, etc. Many developers would love to build more homes, but can't find the workers to complete jobs.

I recently completed an addition onto my home, and performed most of the work myself. I did contract out the foundation, framing, and plumbing. My costs for the 800sf addition were around $120k for a mid-range home. 

I hope this is helpful!

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $95,000
Cash invested: $50,000
Sale price: $418,000

Single family with detached garage converted to ADU (SFR to Duplex). Live in flip, then house hack (rented bedrooms and other unit), then cash out refi to buy another primary residence, then sold just before capital gains taxes would have kicked in.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $65,000
Cash invested: $75,000

Duplex buy and hold, in need of some renovations and rent increases

@Carson Wilcox and @Jay Hinrichs Thanks so much for your comments! Much appreciated!

@Basit Siddiqi  I'll be keeping track of all expenses for sure. I'm not sure if this will end up as a better rental or just a quick flip. I'm open to either.....just recognized a good deal and an opportunity to create equity and I jumped on it. Thanks for your comments!

I'm looking to sell a flip in spring 2019..... I'll have about 150k of my own cash into it and I hope to sell for around 200k. I'd like to not have all that extra income on my personal taxes for 2019, but I'd also like to pull out my original investment (150k) from the deal, once the rehab is complete. Does anyone have thoughts or strategies on this?

Goal = not have to report the anticipated 50k profit on my personal tax return for 2019

Currently, the property is held in my name and purchased with all cash (no debt on property)

Bought the property in Oct 2018, and hope to sell or cash out in March/April 2019

65k purchase + 85k rehab = 150k total......ARV around 200k

I live in Oregon, and the property is in Tennessee.

Thanks for your thoughts!