All Forum Posts by: Kenneth Donaghy

Hi @Dayne Delano, Welcome to the Forums. Depending on the Elementary School and area you speaking of, it could be a good rental property, and/or a good time to sell. I would need more details. Also being a 4/3 2300sqft property it may work well for one of my househack clients, especially with those amenities and low HOA.

I do agree with @Dan H. your HOA seems low for what it includes, I assuming it doesn't include water, how about trash? I would ask to confirm how the HOA is doing with reserves.

Depending on the variables, you could get a better rate if you refi, and the better rates are for owner occupied loans, therefore you agree you have the intent to live on the property, which if you did decide to rent and buy elsewhere, you may run into issues if within the first year. If you are considering doing a HELOC it best to do so before you turn it into a rental.

Hi @Ryan Knapp, I have wanted to write you on this topic for a few days, yet I have been busy, and there is a lot to unpack in your post. 

In no particular order....

1. At your price point, with your intentions. Househack etc. There is a huge amount of competition. You will most likely find yourself in Seller Multiple Counter Offer situations. (SMCO). 

2. If the property is priced right, it will not stay on the market long. I have multiple clients that have learned this the hard way.

3. In a SMCO, an FHA loan will move to the bottom compare to a conventional and a VA. It's not that listing agents are discriminating FHA buyers. Agents have a fiduciary duty to their clients. And the Listing Agents needs to advise their clients to a smooth escrow, that will close. FHA loans have a lot more hoops to jump through, have a history of not closing on time, and more likely to fall out of escrow. I had an FHA loan close a month late. The transaction can be emotional for the Seller too, they may have a new home, job, investment on the line as well.

4. Ways to make your offer look better.... High EMD and better terms, shorten contingencies, etc. Also, I have my clients write a Letter of Introduction... I had a deal close today where my clients wrote an amazing Intro, where the seller wanted to sell to my clients, and when I received a call saying there was multiple offers, but my clients Letter was great. I asked, what do we have to do to avoid a SMCO, and get a single SCO. I got my answer, went back to my clients and they agreed to avoid the SMCO, avoiding someone out bidding us.

5. In a hot market, at your price point, "realistic amount under asking to offer" ..... Your question would be better ask... What is a realistic OVER asking price should I be prepared to offer. 

6. A lot of times it takes a buyer to miss out on opportunities before they adjust their offer strategy.

7. Don't give up. Yes its emotional. It's a huge learning experience that will allow you to build wealth, provide for your family. And this will be the stepping stones to teach you how to do it again. 

@Kyle Smith

@Kyle Smith

@Kyle Smith I would love the contact of the Seller selling off that portfolio. Its possible I know the person already.... if not the more merrier:)
 

@Josh Gosnell I will need to know more about your goals, budget, risk tolerance, lifestyle, commute tolerance to better help you. It would be better to have a quick conversation over the phone to better point you in the right direction. 

@Christian Ortega, welcome to the forums. I am usually one to promote househacking in SD, I am helping people with a wide range of expectations of how to do so in SD. Being a RN will be a good way to find like minded tenants/roommates. I know a few RNs that seem to always have a good rotation of other nurses for roommates. 

My concern is your current budget, based on where in SD you feel comfortable living, compared to how far of a  commute you want/need for work and school. 

If you haven't done so yet, the next step is to speak with a lender and get pre-approved. I have a few I work with I can refer. Then once we know what you are qualified to buy, I can then show you properties in the area within that range. This will help better set realistic expectations of your house hacking abilities. 

@Jaysen Medhurst @Kerry Baird

Thank you very much!

@Amit Shrestha

For our notes

@Dan H. and @Dennis Nikolaev, Please let me know who does HELOCs on investment properties. That is valuable info!!!

Welcome! Let's chat!

Hi @Sean Abrahamsen, buyer exclusive agency contracts are normal. I prefer not to use them, I rather build great rapport and establish a relationship where my clients wouldn't consider using another agent. I have seen other agents via online trap clients into these contracts early in the process, then under perform. And/or not understand the Investor mindset and goals. Investors are different than a home buyer. Therefore interview agents until you're confident you have the right one. It's important you feel comfortable, and know your agent has your best intention, and truly act as your fiduciary.  If they're just trying to get you to sign a contract without leading with value, that's a red flag in my opinion.  Definitely do NOT pay $300 to pass go.  

Hi @Sean Abrahamsen, Welcome. @Katie L. is a great local resource for information regarding LLCs and CPAs.

I agree, the water department, and waste management are the best resource for the most accurate information.