All Forum Posts by: Julius F.

@Shawn Clark Thanks, I am looking for a property that can meet those requirements. I prefer not to sell (referring to #1), but I just want to keep my options open if I need to exit for some reason or another. Will surely keep these points in mind while I am searching.

@Chinmay J.

Thanks! Sounds like you got in at a good time and had a good amount of initial capital to start with. Keep up the great work! 

@Account Closed

I will PM you. I have a few questions about the VHDA loan.

Thanks everyone!

@Chinmay J. Great job on your growth in 2017 and I wish you even more growth in 2018! You give some hope to a new investor like myself. I am thinking of starting out in a similar way (buy-rehab-live-rent). 

Is it okay to ask, around the area you bought and how much you paid for the house and the rehab costs?

Happy Holidays, and I wish everyone great success in 2018!

I have recently caught the REI bug. I am looking to buy and house hack but there are a few things that worry me. Just looking for some advice/feedback from others as to if I am in over my head or simply crazy.

Currently, I am renting a room in a house for $800/mo, but I am looking to move. My main goal for renting a room was to pay off my student loans, which I have done.

I’m now looking to buy in Alexandria (specifically around the Huntington area or a little further south along route 1) to be closer to work, in order to cut down my commute time. In addition, I would rather not waste money on renting (putting my money into a black hole). The area I believe is a hot market, since it is located close to the metro and it seems to be a growing area (class B or C area?).

Finances:

- 8k saved to invest (most of my savings)

- Buying price range 350k or lower

- Use of a VHDA loan 3% down with DPA and MCC

My concerns:

- If another opportunity comes up and I leave the area (say in a 1-3 year range).

- Going against the requirements of the VHDA loan as a first time buyer (and wasting it) since I believe the house has to be a primary residence for 5 years. In addition to paying back the DPA.

- My exit strategy if something does happen, since in this time frame I will have little or no equity in the home if I sell and I could lose money by selling (not sure if I can rent it since it is suppose to be my primary residence).

I've thought of just looking for an investing property (not a primary residence), but obviously not enough money at the moment to invest in this area with a down payment of 20% without assistance from other investors.

I could also try to buy in a good location in Maryland but the commute to work would be tough.

Questions:

- What are your thoughts on the situation?

- What exit strategies would you have in place to prevent losses?

- Do you have any experience or knowledge of the VHDA loan and going against the requirements?

All advice/feedback is welcome and greatly appreciated.

Thanks for hosting the meeting, nice turn out!

@Brent Coombs 

Thanks for your feedback. I agree the seller might not sell at market value, but I thought it would be better to offer and see how they respond rather than not doing anything at all. Still trying to get an understanding of the market and what a good deal is. 

It appears, the basement is "legal", but I would need to double check on it. I utilized rentometer.com to get an estimate of the rent for similar housing.

Property management was to put some some away since I would be managing it at first, but it appears I should put more aside. As well as the maintenance and cap ex. It appears I was a little optimistic on the deal.

Appreciate the honestly and great feedback!

Hi @John Leavelle

Thanks for the feedback, it really helped me think more about the numbers I should be using. I am still getting used to analyzing deals and getting a feel for my market, so that is why the numbers are rough. I do not have specific comps, but I was basing the price on similar properties in the area.

I do not know how old the pictures are, but I was scheduling an appointment with my realtor to take a look at the property. And I agree, the maintenance and CapEx were low. I was thinking of getting a home warranty, so that is the reason I made them low. I was also planning to adjust after taking a look at the property in person.

The vacancy and property management rates were just numbers I pulled out of the air, since I was not sure. But I will use one months rent and 10% for PM until I at least get a better understanding of my market. I'll be sure to check on the PMI requirements too.

Thank you for your all the advice, I truly appreciate your help.

@Derek Kirkwood 

Okay, that makes sense. I thought my cash-on-cash seemed high.

Actually, I am planning on checking on the number of roommates allowed to make sure I am following the laws (not a college town, but it is near DC). I read on another post how something like the limit of tenants in the house  put a big wrench in the properties cash flow, so I realized I needed to make sure I can do what I am thinking. I am not sure if a family would pay $2600 for a 3/2, but in this area I think it is possible to do 2 tenants for $1300 (will double check). 

Thanks, I truly appreciate all of your feed.

@Derek Kirkwood Merry Christmas!

The utilities would be paid by the tenants (split 3 ways), but my estimate for utilities is $150-300 (water/gas /electric).  

Looking at the pictures it seems rent ready. If that is not the case, since I plan on living in it first i'll have time to make any needed repairs. 

Yes, I included the agent fee because my offer is lower then they asking price, so if my agent is not able to get the seller to pay for the agent fee then I could still cover it.