All Forum Posts by: Luke Treacy

@Jae Green

In regards to the basement renovation are you wanting to creating an additional unit and rent the basement and first floor to separate tenants?

Is the place livable now without renovating?

If you can get away with putting just a few k into it , after you get a renter the cash you have could be used to scale up. Sounds like you could grab potential 2 more properties.

Paid 2k for it when I switched from FHA to 203k , with it expiring on closing I lost all leverage on final walk through. Seller was a POS and didn't do repairs until literally the days before when agreement had been a week before closing. Needless to say dumb a sellers agent went in to turn on boiler because one of the repairs were to fix all radiators to soon find out his repair men had cut an entire pipe on first floor leading to second so the entire rooM filled with steam. Because pipe was missing and being rushed because we had to get to closing table I missed the fact that we couldn't check radiators upstairs to make sure leaks had been fixed because there was no pipe forcing steam.. big rookie mistake .

@Dan Mackin

1. Buy and hold

2. Going on a year 3 properties later

3. Never let your rate lock expire on closing date

@Da Shiek Woodard I live in an expensive market as well, not as expensive as $2200 a month in rent but at least assume you live in a pretty good place. I grabbed 2 out of state rentals first as 20% down conventionals but recently close on a 3 unit multi family as my primary residence. From what I’m starting to learn it’s all about the equity and cash flow. The more cash flow and equity you can build through real estate the better the wealthier you become.

My 3rd purchase in less than a year is our 2 flat here in Chicago. I did the deal for leas than 15k and got a 3 unit building for $417500 with the 203k loan. We’re doing the full streamline. Interest rate 3.49. Seller credit of 3%. Because I shopped lender I was able to end up with the lender I wanted matching a $4000 closing credit. Monthly payment is $3050. Our current rent is $1400. I estimate we’ll get $2600 utilities included for the 2 units we rent per. Utilities estimated a little over $400 in winter if the numbers work I save myself $700-1000 a month in a neighborhood in the path of progress. If you live in an expensive area house hacking is a great first step (s) to becoming a real estate investor. I can now live where I want, near where my W-2 job is, in access to public trans which my fiancé uses for work while we are paying “rent” well under market while We grow equity in OUR building. I have more than 5k in my reserves, but would still recommend if someone had 20k to still move forward investing in real estate. Brandon Turners book on investing in real estate with low and no money down was my inspiration in house hacking.

One of the lenders I had recently spoken to about the mortgage. 

Was told if you annual income at your w2 job was over 60 something you couldn’t. 

Do you know what the rule is?

Looks like I’m about to have my offer accepted on my 3rd property. My first 2 were out of state conventional 20% down earlier this year. This time after reading the book on low and no money down I have decided that since I’m currently renting it was time to get my own place, not to mention my fiancé and our 2 year old need it! Going fha on a 2 flat with garden and giving house hacking a try.

Got a bit of a way til we close, but wanted to run an idea I have by the forum and see if it is actually possible. Let say we close and I’ve been in the property for a year , value goes up to where I now have 6% equity. Am I able to

Refinance into a 5% conventional? I was told that my income is to high to do the 5% conventional up front. What I was hoping to do is once I had enough equity in the unit was to refinance into conventional and then go back out and get an multi via fha and rinse and repeat that process over the years to come.

Thoughts? Suggestions? Any insight is appreciated.

@Chris Mason

Thanks Chris, the process couldn’t have gone any smoother. Great communication all along the way. Both closed in less than 30 days. Really enjoyed working with my lender. But since I was, and am still so new to this I’m not entirely sure how to gauge whether I got a good shake. I’m the last one to say it’s all about the money. I provide a service for a living so I get it.

@Frank Geiger

I wish I could attach a screenshot of them. Using mobile is this something I can via my laptop?

It was 2 pts. I think the difference was prepaid a we’re 1k higher and they are identical properties so to speak. I’m working on buying a place where I live and was told closing costs are between 2-4 percent which sounds a good bit less than what I got on these.

@Michael Kinsella

Just a lender I assume, residential investment group. They sold my loans to Chase via the Fannie Mae after.