All Forum Posts by: Michael Craig

@Asher Knudson it is recommended that you use a real estate broker on your first deal but if you do your due diligence, you will be alright. Be sure to find a rock star real estate attorney. I would also recommend considering an experienced mortgage broker. 

Interview as many as you can and you'll stumble upon the right one(s).

@Asher Knudson very likely that those concerns have been remediated (even when considering age of the home). You won't know until you get the inspection though. If the inspection brings up true concerns, you can always back out of the deal or negotiate the remediation (whether you have seller address prior to closing or renegotiate final closing cost). More problems, more opportunity! 

@Jordan Vanherwynen In the states, a conventional mortgage amortization period is typically 30 years. Not sure how it is in the Great North, maybe some of your local compadres can help with that.

What you will find with a longer term mortgage is that your monthly payments are lower but you pay more interest over a longer period of time - interests rates may be slightly higher as well.

@Benjamin Kennel go for the house hack 

@Asher Knudson in NY, a licensed inspector will have all the criteria required to preform a thorough inspection. Be sure to include a radon test as this is not included in the inspection. Also, in NY inspectors are no longer allowed to test for mold so do your due diligence in identifying any moist areas or potential places mold can grow at high levels (inspectors will normally point out any suspect spots they just can't run a mold "test" as they are not certified to do so).

I normally use inspectors based off referrals (maybe you have a fellow home buyer who can recommend one to you). I go off of agent referrals  but because you are looking at an off market deal , maybe you can find some on google? In my experience they are usually really helpful and friendly.

Lastly, because it is off market and your first deal, I would recommended you shadow the inspector and pick his brain during the inspection.

@Jordan Vanherwynen not sure where you are getting closing costs but insurance binder, attorney fees and title will be over $2,000 alone. Not to mention inspections, appraisals,  fees, etc.

You are on the right track, keep analyzing! Have you considered a 30 year amortization period for better cash flow?

What is your end goal? Do you have a steady income stream? Are you looking for buy and hold, flips, commercial real estate, etc? 

I'd pay cash for a distressed multi-family and use the BRRRR method

@Katie Souder 

The reasons I would rent to a group and not individuals are

- 3 tenants who are jointly and severally liable will hold each other accountable as opposed to 3 individuals

- If you are in a market where 3 Bed, 1 Bath rent for $1,100.00,  $600 a month studios will be available (that is where the desirable tenants will turn to)

- Turnovers are likely to be greater 

- Much greater risk of tenant problems - tenants not getting along (which is now your problem because you placed the tenants)

- Lower grade tenants

I guess it depends on your market but this is something I would never consider. It is not your job to be a match maker, have the tenants do that.

@Rachel Riccobono I agree with Anthony, you want them on a new lease agreement with you ASAP. I recommend keeping the lease month-to-month until you know how these tenants conduct themselves (makes it a lot easier to get them out if they turn out to be problematic).

@Matt Faircloth 

Going off of what @Michael Strachan, house hacking is a no brainer when getting started. Mainly because of the extremely favorable financing options - look into FHA loans. You have to pay rent anyway, might as well pay it to a property that gives you RE experience and equity.

In regards to getting over your fear, learn the market, buy based off numbers and not emotion and go for it.