All Forum Posts by: Mason V.

Whether I can get a bank loan or not depends on the property I go for. All the MFHs are full. One, however, is owner occupied so I would just move into her unit via FHA loan. For the other MFHs I don't have the 20% needed. With the SFHs I do have the 20% needed but not the employment history. Got fired in June and just got hired at a trucking company yesterday. I can't see the home still be on the market in a month or so. For the other SFHs, the sellers either want cash or the home would need work before qualifying for a loan due to water damage.

 Not surprising, Oregon seems to enjoy throwing wrenches into my plans. Lol.

I wasn’t sure if I should post this here or in the BP Marketplace.

I am planning on acquiring my first property, SFH or MultiFam, before June 2015. Ideally I would prefer to do this on my own. However, if I can't get a conventional or FHA loan I may need to find a private lender or partner. Before I can search for either though, I have to know what informant I need to gather ahead of time. Thus far I assume I will be need to get: an appraisal, asked for price, comps, known issues with property, exit strategy (my aim is buy & hold), and intended rehab if necessary.

What addition information would I need to acquire before going in search of alternative financing.

True and that’s what I am initially doing. There’s seems to be quite a few foreclosures and pre-foreclosures here. However, I also have Portland only an hour away and several other small towns nearby as well. One of the advantages of being a truck driver is that I can easily do an owner occupied deal where ever I like. :D

Originally posted by @Peter Chan:

Hi @Mason Valenzuela

Welcome to BP!

With regard to your $50k income restriction, do not automatically assume that if household income is over $50k they will buy a home.

Home ownership is a long term commitment that many people are not willing to make. Plenty of households making over $50k a year choose to rent because they prefer the flexibility of renting.

In fact, this may be the demographic that you want to target because these people will have more income and may be willing to pay a little more for higher-quality accommodations.

Good point. I am personally struggling with that other people don't want the same thing I want. If I made $50k+ I would get my own house. My neighbor and apparently most people in general, hate dark wood paneling while I love it. I despise the idea of HOAs, yet a developer I know explained that a lot of people would rather give control to an HOA for convince. Definitely something I need to work ok. Thank you.

I am currently researching cities in Oregon and Washington. My primary strategy will be buy and hold, as a 14on/3off truck driver rehabbing would be difficult. In order to pursue this I am looking for cities with growing populations over 10k, with an average age below 40, stable long term employers and an average household income of under $50k. What am I missing and are any of these wrong?

I know the population cut off is generally 50k, but Oregon doesn’t have a whole lot of those. By 40 I presume people will be tired of renting and finally want to purchase their own home. With employment I can’t have a whole lot of instability. Finally, I can’t imagine too many people making over $50k and not owning their own home.

I am trying to think of ways to creatively finance a rental property with three tenets. One of the tenets is a doctor’s office while the other two are residential. One of the things I have considered is acquiring a private loan through another investor. The property costs $250,000 and they would thus give me $50,000 for the 20% down. I am thinking the terms of the loan would be 10-15% to be paid out over 5-10 yeas depending on what we agree too. According to the seller the property has a gross income of $18,000 and a net of $7,000. Supposedly. I have not looked at the financials yet. Right now I am just focusing on brainstorming the financing at this time.

In ideal conditions I think this could work. Life is not ideal though and I would like to know how the other investor would be compensated. To my understand the mortgage gets paid first. So if anything goes bad the bank will either get their funds back through insurance or get the property.

However, what happens to the other investor if the building is foreclosed or there is not enough insurance money for them as well? Is there a way to ensure they don’t receive a total loss or would they just have to accept they wasted $50,000? Obviously that’s part of investing, but I would like the reduce the risk for them sense their loss would result in me getting a bad reputation.

 Thanks for confirming what I already assumed.

There's a set of 17 units where I live priced at around $750k. Under the Terms section of the ad it states "cash, conventional loan or FHA Loan and seller is willing finance 2nd.” That all sounds great except for the FHA part. For the past two days I’ve done FHA research and from what I can tell this place does not qualify. From what I’ve seen the property needs to be 1-4 units for owner occupied. For 5+ units the property just needs to be a minimum of $1m. These are for 2 separate types of FHA loans and from what little I have this property does not qualify for either. I emailed the listing agent about this but she has not yet returned my email. Nor had the Portland FHA office contacted me after I left them a message. So now I am asking the Biggerpockets community.

When looking for a market to invest in, what sort of ques, signs, criteria, etc. do you look for?

Yep. Thank you very much.