All Forum Posts by: Korey Hauenstein

Hi BP, I have started looking into houses to invest in. I am either looking to do the BRRRR strategy or a turnkey rental. I was told by a family friend who has invested with his own money in rentals, that I need to get pre-approved before I do anything. First is this true? Second- What kind of Loan should I go for? Third- what kind of rates are normal for a rental? Finally- I was also told the minimum I would need to put down is 20% - 25%? I know this is basic, but the loan part is my weakness so far. Thank you for any help!

Hi, My name is Korey and I am new to investing. I have done my research and learning and have been waiting to jump in the real estate sector. I finally found a deal that has caught my eye and is a very different kind of deal and would love to hear any advice on the deal! Background story: the deal comes with two properties. It is near a small college. One is a single family home converted into a duplex. On both sides are 2bd 2ba. The other property is an apartment building with 4 doors. Each one is a 2bd 2 ba. I don't know the square foot of each apartment. With that said, so far I haven't contacted anyone, just looking at the numbers I was given and decided to ask for your opinion. Numbers: Asking price:225k Built:1910 Loan: 20% down $175,000 loan 30 yr fixed Estimated mortgage with insurance/taxes: $1,100 Rented: apt A: 650/Month aptB: 650/mo aptC: 600/mo aptD:600/mo AptE:495/mo AptF: 550/mo Total rented: $3,545/mo -landlord pays water,gas,sewer :estimated value:$800 Would use property manager: 7-10% per month: $280 Also, the duplex price value could be around 60-70k sold as is. ARV could be around 100k with 15-20k repairs. I know I am missing numbers, but anything that you think would help a noobie (would be my first property to invest in) would be great. Such as things I need to be careful of? Things I should ask realtor/owner? Should I sell the duplex to pay off debt of loan? Anything would help! Thank you, Korey

Appreciate it!

 Hi I am a newbie from Colorado and enjoy all the great success stories! I am very interested in starting with flips to build capital. I am still in education mode, but hopefully will pull the trigger soon on a deal. With that being said, I know there has to be times when everyone makes mistakes, or something happens to where you did or would have lost money on a deal. It would help a lot of people, including me to know how to avoid these things! Explain what happened in the deal, or what you may have missed during the "flip math" and more! 

Thank you!