All Forum Posts by: Michael K Gallagher

Damn @Account Closed woke up and chose chaos!  Love this discussion and thats why BP so amazing! The concept is great and could work fine... everything in real estate is negotiable.  I just think it comes down to how long the client or buyer wants to spend learning, researching, drafting paperwork etc to avoid working with an agent.   If that is the most valuable use of their time to save $15K then by all means!  

@Emanuel Eyssallenne congrats on jumping in! what a huge move! Here in Ohio we don't normally see "due diligence" money just the earnest money so I'm not too familiar with the specifics around getting it returned to you, but in my experience since those issues are now known the seller will need to disclose those issues to anyone else.  So if I'm the seller I'm still going to try and work with you, the deal thats in my hand, given that you know about all the issues. Might be worth a call to the seller once you have the quotes back to discuss how to handle things...perhaps they don't want to price to come down but they'd give you credits or cash at closing for the repairs...depends on their motivation and its usually worth asking.  

Keep us updated on the progress!

Hey @Easton Curtis if you have not done so already I'd take a look at @Mindy Jensen and Josh's book they just put out "First time Home Buyer".  If you have not heard it already their discussion with Jay and Carrol on BPBP was epic!  and so good, for someone in your situation its really worth the mindset shift they discuss.  

Regarding your specific situation.  The buying a property and then moving out of state for your first deal does present some higher risk.  but if you are prepared to deal with that risk through intense property management interviews and systems from the beginning then you should be able to mitigate that risk somewhat.  

Counter to @Jaron Walling 's point of view on the retirement pull, which is still very sound advice on his part so do take that to heart.  However, I myself pulled money out of my retirement to purchase my wife and my first house.  We bought it at the right time in the right area, and were able to sell it 2 years later for a large profit and take that money and put it into a downpayment on our house hack.  So in my situation it worked, and I'm so glad I did it.

Just make sure you understand the implications and lost opportunity cost of pulling that money out, do the math and look at the data and decide for yourself and your specific desires and situation.  Most people will tell you to "never pull out of retirement"...and I get why...but what matters at the end of the day is if the situation works for you and if you are ok with not having those long term returns on that money and are more happy or comfortable or better off with it in real estate...that is completely your decision.

I myself plan to probably never have any kind of real money in the stock market simply because I like real estate better as an asset class...thats just me, and it fits my personality and my goals for myself.  

I'd also say for your first property especially if you are already planning to go FHA, looking at duplexes for a house hack is really really worth it and really can give you some long term power to make some big moves later.

Let us know how it goes! cheers, 

Honestly...I wish I took action sooner...trust the numbers, and trust the process, but if its a good deal don't talk your self out of it.  If you are committed to getting the property..go get it, you've done the homework...and you know where to get the info you'll need later.  Jump in! you got this!

hey @Adriana Vergara I have had this conversation with myself many a many a time!  and there really is no "right" or "wrong".  So I'd attack this with the mindset of trying to make your situation better, and how you go about it just depends on your goals, and your situation and your personality and what you are comfortable with.  

If you otherwise have good credit, and your DTI is the only issue, I'd personally if in your situation, go with knocking off the debt, and buying a property, especially if its a duplex or 4 plex and you're going to house hack it, because then you are literally making money off it so its a good deal all around.

However, and please do your own research, but from my understanding their is language in the stimulus bills that lets you pull out of your retirement and not pay the penalty...again confirm this form yourself but I do remember seeing that.

If you are using the money to pay off your credit cards and just go right back to spending on them...thats a different story, but if you are clearing them off to be able to make moves here in Real estate...to me personally it would be worth it...but again thats just me.     

understood, yeah that makes a ton of sense.  If it is a 1-off its not a big deal but as soon as its every three people yeah that becomes a lot.  Perhaps an opportunity for a "FAQ's" sheet or something to assist until they are more serious or have actually applied?  

@Mindy Jensen let’s go!!! Just became an agent in OH and I am so excited for this!

@Julie Goodwin congrats on jumping in! I would also echo the sentiment on the thread around trying a conventional financing route...when I did my house hack and duplex to start the 3.5% fha loan was the best part. Sure we will have to refinance later to get out of PMI but that low down payment for an owner occupied building is really where the power of the house hack comes from. Cheers!

@Cynthia Garcia welcome and congrats on jumping in! I’m in the Columbus market and unless you are looking to do some fairly large rehabs those price targets will be hard to hit for anything move in ready. If you expand your search to Dayton/Springfield/zainsville you might find better properties but the appreciation/tenant pool would most likely be significantly lower than in the three major city’s you referenced.

However, Columbus is a fantastic place to invest! Specific neighborhoods really depend on your price targets and long term goals as well as exit strategy. We do have a largely diversified economy with many pockets that present many different opportunity’s. Many hospitals to take advantage of traveling nursing programs. Colleges to take advantage of student housing, Amazon, Lbrands, express, chase, nationwide the list goes on of major employers in the area.

I Would be honored to help anyway I can on the ground. Don’t hesitate to reach out. I’ve got a duplex near down town and am an agent in the area.

Cheers,

Michael

Hey @Jin Zhang congrats on your new Duplex!  yes I would 100% agree that checking with your local laws, or even doing an area specific forum search her on BP would be your best bet.  But as a rule of thumb you have the right idea...if the tenants do not have an active lease and they are on a month to month you will have to provide notice of non renewal and work with them on the move out.  

It's usually not always the most obvious but if you spend some time speaking with them and figuring out what they really need/want...there is usually a win:win situation that can be found for these issues.