All Forum Posts by: Kyle Regitz

I'm tired of flushing rent money down the drain every month, but 18 months probably wouldn't be long enough to cover closing costs, unless I'm able to force a heck of a lot of equity.

What did you mean by this? Closing costs generally refer to the costs the buyer assumes when purchasing a property. Underwriting fees, origination fee, ect.. This is to be payed up-front unless rolled into the mortgage.

Do you mean selling costs (agent commission and title transfer, ect..)? The answer is to not sell it =). If it cashflows with property management and proper setting-aside of reserves, then there is no reason to sell!

If you are wondering what you will qualify for, just call any lender or broker and have them run some rough numbers. You can also do it yourself.

Total monthly debt servicing (1% of student loan balance + car payment + minimum credit card payment + any other monthly debts) / Total monthly income before tax

EDIT: For house-hacking add 75% of the potential rental income from the other units to your monthly income!

This value generally should be under 0.43 (someone correct me if I'm wrong).

Yes, sorry I meant the selling costs. Yeah, that's definitely the route I'd want to take (to hold onto it) and if my analysis is done correctly upfront to factor in property mgmt, I could own the property no matter where I live.

Do banks look for a particular debt servicing ratio?

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Originally posted by @Gary Enderlin:

Kyle

Glad you had the guts to ask this question. I have had a few opportunities pitched to me and have passed because the lack of knowledge. I had lunch with a contractor buddy of mine who has fixed up 5 of these in the last 2 months. Obviously others are taking a chance and being rewarded so why not us as well. I think the first one I do I will hold on to for a rental just to test the waters but I think people in the Houston area realize in certain areas there may be a chance of flooding but That's where you could get informed on flood insurance and be able to know the ins and outs of being a flooded property investor. Good luck.

Gary

Thanks for the word of caution Gary. I have started to look into the flood zones, not only the ones previous to Harvey, but now the newer areas.

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Thanks @Brandon Johnson! That would definitely push me since I have very little experience in the renovation space, but that's the direction I want to head.

1 Vote

Hi! My name is Kyle Regitz, I am 22 years old. I graduated a year ago from Texas A&M University, and took a job in the Oil and Gas Industry. I got married at the end of May, so as you can see I don't like to waste any time :). I enjoy the work that I do, but not enough to do it until I'm 55/65/75 whatever the retirement age will be when I get there. And while the benefits are generous, who knows if any of those options will be around when I hit the age. Moreover, I want to have the freedom to spend a bunch of time with my kids (when we have them), be invested in their daily lives and take them on fun vacations.

I have been reading on here for a while and watching podcasts, and I know where I'd like to start. Like many people on here, I want to begin by house hacking. I'm getting moved back to Houston from Baton Rouge next summer and I've started to think about our housing situation. However, it might only be 18 months because there's a chance I get sent overseas. So, what does the BP community suggest? I'm tired of flushing rent money down the drain every month, but 18 months probably wouldn't be long enough to cover closing costs, unless I'm able to force a heck of a lot of equity. And with my 22K in student loans, I'm not sure how likely I'd be to get approved for a loan? I like the idea of a lease option, so I wouldn't be losing everything.

These are the options I've thought of (If I've missed one, please throw it out there!) I'm curious to see what y'all suggest/what y'all would do if you were in my situation?

Rent a SFR (with or without an option)

House hack a du/tri-plex

Buy SFR for 18 month live in flip/ turn into rental

Thank you in advance, and I look forward to taking an active role on this site!

-Kyle

2 Votes

All Forum Posts by: Kyle Regitz

Kyle Regitz has started 1 posts and replied 4 times.

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