All Forum Posts by: Jon Puente

Hey Armando, 

I would not buy something that needs a ton of work upfront, especially when buying 2-4 unit, unless you are handy with construction and renovation. 

For the lending side, I would recommend an FHA loan with 3.5% on 2-4 unit properties, or a conventional loan with 3% down on a single family.

Either way, you need to cover your payment or make a little money.  This is not going to be a home run deal, but you dont want to lose money either.  Take your time and find a solid place to invest in.

Hey Garrett, 

If the home is a single family, then just do Conventional with 5% down. If the home is a 2-4 unit, then use FHA as the down payment will only be 3.5% down.

I would need more info to guide a better answer than this, but those are the basics! 

Hey Matthew, 

To be honest, I have been using CashApp! I know it might be "unprofessional" but its easy and consistent.  I can pull reports if I need to and then I deposit all of it into my checking account.  Once I get more properties, I will most likely setup a software or system for this, but for 1-2 properties, it keeps things easy for everyone. 

Hey Mitchell,

DSCR is not the same as Hard Money, not even close. DSCR is just a simple way of purchasing an investment property when you do not qualify using personal income (Paystubs, W2s, etc..) or you want to close in the name of an LLC.

The only things that matter are credit, down payment, reserves, and DSCR ratio! If those check the boxes, it's probably the easiest loan you will encounter.

Great Question!

Hey Brandon, we might have to chat about this! Very interested in the STR game.

Hey Isaac,

I would advise you to select an agent who is very familiar with the area to help you navigate! @Stephanie Walker

I am a local mortgage broker here in Charlotte, NC.  I have lived here for 5 years and own 2 properties (hopefully a 3rd on the way this year).  Would love to chat regarding real estate investing.

Hey Ying, 

I do not think your offer is far off from what I would offer. The biggest factors to consider are days on market (75), earnest money deposit (5K), and how motivated the seller is to sell. Now, depending on the condition of the house, he may not take an FHA loan because an FHA appraisal might pick his property apart and add more cost to sell, so you may need to increase your offer from there.

However, you wont know until you try!  No response is a response, so just adjust from there if this is a property you are seriously willing to purchase.  If your agent is not wanting to put that offer in, then find a new agent.  It's not his choice. 

Great Question!

Hey Tom,

I am just going to give my opinion on this - I am NOT a fan of Rent to Own.  Yes I understand that it can be cheaper upfront to do this, however there can be so many hidden costs or problems that arise later on.  My opinion comes from horror stories from customers I have spoke with about this. 

1) What if you rent for 3 years and finally are ready to buy and find out the person you have been renting from isn't actually the one who owns the house? (You would be surprised).

2) What if 2 years into renting, "COVID" happens again and the owner takes back his promise because he is getting outrageously high offers on his house and does not want to sell to you anymore. 

3) I am sure there are many other "fine print" reasons why this could be dangerous, so my advice is to just save up a down payment or figure out a way to get the title in your name so that you own the house completely.

Great Question! 

Hey Ryan, 

No there isn't.  MTR would fall under the same category as LTR, but with some additional positives regarding cashflow.  So this would just be your normal leased out property and tenant as it would be with LTR.  The tenants are at their own risk regarding amenities and you can add some type of verbiage in the lease documentation.

Great Question!

Hey Franc,

Assuming that CapEx items are covered and you are buying a property in decent condition, the best value add would be kitchen & bathrooms. This would mean flooring, countertops, cabinets, knocking down walls to make an open style home, paint, etc...

If you mess around with foundation, roof, electrical, HVAC, it could get very expensive and you would need a REALLY good purchase price to make up for it.

Great Question!