All Forum Posts by: Michael J Scanlon

Hi Joseph, 

I am a certified military relocation professional. You have a number of options here. You can buy a turnkey and should be able to put 0% down. But you also have other options in terms of buying land and building, fixing a place up. The specific deal will depend from house to house. Message me and I'll be happy to help answer anything. 

The two year rule is based on 1099 (self employed/independent contractor) tax returns. If you get a W2 job (where a company has you on payroll, takes taxes out for you, etc.) this can help you qualify. You will probably not have a credit history yet so that will be an issue but get a credit card and use it but only if you have the money to pay it every single month. You'll want to build some credit history. 

I actually like buying townhomes sometimes if the HOA is well run. It saves you from needing to put away significant funds for Capex issues like the roof, foundation, etc. because this is handled by the HOA. Just make sure they have sufficient reserves and no planned special assessments. You also want to make sure any sellers are in good standing with the HOA.

I sent you a message. 

I think in general multi is typically going to be safer because you spread your vacancy risk across units. If you own a 4 unit and 2 tenants lose their jobs, you miss out on 50% of rent. If you own a single family and 1 tenant loses their job, you lose 100%. The more units you have, the lower your risk. If unemployment goes to 20% but you have 100 units, you could reasonably expect (barring something specific about your market) that you might align with that 20% and 20 units will not have jobs. But 80% will. I own some SFH but economies of scale have benefits.

Could be cash. Some choose to get a rewards credit card with an introductory offer of 0% APR for the first year (but make sure you have the cash to pay it off!) just to get extra benefits like airline miles or cashback. Could be borrowed from a family member and paid back in cash flows. There are a lot of ways to finance.

You might be able to but I highly recommend reading all of the bigger pockets books first. I would also recommend crushing it in apartments, best ever apartment syndication book, and millionaire real estate investor (on top of all the bigger pockets reads). Once you're self educated, you'll be able to work with someone. 

What are the terms of their lease? If they are month to month currently, what are the laws in California? If they are month to month and 30 days is all that is required, then yes. If they have more than a month left in their lease, you would have to negotiate something with them. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $36,000
Cash invested: $36,000

Bought a property cash and will do minor repairs, allow a seasoning period, and refinance my money out.

What made you interested in investing in this type of deal?

Rent to price ratio.

How did you find this deal and how did you negotiate it?

MLS, negotiated with the seller's agent.

How did you finance this deal?

Cash.

How did you add value to the deal?

Will be updating the bathroom, walls, windows.

What was the outcome?

In progress.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Myself.

Investment Info:

Single-family residence other investment in University Park.

Purchase price: $1

Currently in progress BRRRR deal

What made you interested in investing in this type of deal?

The deal just made sense.

How did you find this deal and how did you negotiate it?

Facebook marketplace. On the phone with the seller.

How did you finance this deal?

Cash.

How did you add value to the deal?

Will be a rehab, rent, and refinance.

What was the outcome?

In progress.