All Forum Posts by: Kiera Underwood

@Bryan Malone

I understand if if it’s not likely. However not something to totally write off. I just sold luxury duplexes in a great neighborhood with amazing schools that each had 5 bedrooms! Even if you weren’t marking any money, if you tenants are covering even half of what your previous living costs used to be, it’d be worth the inconvenience in my eyes! The move could actually be an upgrade that ends up costing you less.

And you don’t have to sale your current residence if you love it! Rent it if you’re able to get rents to a point where the numbers make sense! And move back in it eventually. However moving every year for 10 years is the way to go if accumulating 20% down payment is tough!

Feel free to send me a message if you want to talk about OKC any deeper. I'm also happy to jump on a call and answer any questions! 

@Bryan Malone

Live in one side and rent out the other. You could do that for only 5% down! You only have to live there for a year then rent that side out.

@Adam Leonti

I'd house hack for sure. So just buy a duplex and live in one side. 

1) Go get approved for lending an FHA loan so you don't have to bring much to closing. If approval isn't easy for your situation at least talk to a lender and ask what steps you need to take to get approved.

2) Find an agent that specializes in investments in the area and work with them. Ask them what a good cap rate is in the area (the rental income-expenses/the price you pay). Then you can ask them to send you stuff that meets or beats that cap rate. If anything great comes up I'd make an offer before even seeing it. You can bust your offer during the inspection period if you go see it and it's not what the pictures seemed or if your inspection report shows that you have more to worry about than the seller will likely fix. 

3) Run the numbers by the BP community or someone that knows about investing that isn't going to make money off of you, just to make sure you're getting a good deal and your agent isn't wrong/misleading. Make sure to do this before you inspection period is over so you can back out of your offer if your numbers aren't as good as you thought. 

4) When you make your offer ask the seller to cover as much closing costs as legally possible so you won't have to have much savings. If the seller won't cover, ask that the seller raise the price by the amount you want them to cover, they shouldn't push back.

5) If inspections go well and you keep the property - get a home warranty. It's not expensive and will cover you if ac/heater or hot water tank goes out. Later when you have more cash reserves you can get rid of this. 

6) Do it again in a year. 

I’d buy homes with the highest rates of return in the most stable markets. In OKC you could buy 4/5 existing rentals that cash flow from day 1. After 15 years you’ve made all of your money back and are still easily making 12k a year passive income.

@Alvaro Rodriguez

I’d never purchase a house to live in that I wasn’t house hacking!

Is house hacking an option?

I saw an investor listing duplexes at value but ultimately selling pretty far under. I jumped at something left in the portfolio with a low offer and it was accepted.

Purchase price 160k rents for 900/side.

I did this when cash reserves weren’t where I’d like them to be so I just got a home warranty.

Biggest things I learned is..

1) Don’t tell your tenant you own it. Tell them you manage it so you can give hardline late fees etc without looking heartless when they give you a great reason they can’t pay on time for 3 months in a row.

2) Scope your lines. Home warranties often don’t cover the main line collapsing and that’s a bigger repair.

Spending time on Zillow and Realtor are also time sucks when a good team would bring the deals to you!

I’d find a team you trust that has already developed a relationship with contractors.