All Forum Posts by: Mitch Miller

@Peter A. Hey peter! Welcome to bigger pockets. There are good deals everywhere in Raleigh. If you want better more pointed advice we would prolly need to know more about your goals and price points. Like do you want cash flow or are you ok with just appreciation? Do you have a budget you need to stay under? Do you want turn key or something you can add value too. Real estate is a big beast, there are a lot of ways to win, you just need to figure out which way you want to go after it.

@Nathaniel J Mottit all depends on your risk tolerance. The banks don’t always look out for your best interests. If I were you I would continue to look for a 200k house that you could afford on your own and as you rent out the rooms you lower your expenses. I would also keep my eyes open for any good deals up to your pre approved limit but just make sure you are ok with the added risk. Just because it has another bedroom doesn’t mean you will be able to rent it out.

Also run the numbers. If you can buy 200k house and avoid pmi and put a decent down payment you might have a lot smaller payment than going as leveraged as you can and pay pmi. All in all you need to make the call. I just would not say a large house with more bedrooms is 100% going to get you more profit.

@Patrick O'dowd I would say that’s the reason most people want property management is to take care of maintenance but if you are going to find someone as your single point I would think it would be a general contractors. The best option would be just build your team. Find a handyman, plumber and electrician and then it’s just one call for an issue.

@Sean Ade It all depends on if you or your parents will “live” there. I think the lose terms are you have to live there over half the year. It also has to be close to your work. So for you in Portland May be an issue. Most people can work remote but lenders will ask for a letter saying something like your salary will not change if you move to Raleigh from your employer. It’s a slippery Slope a lot of people try to walk. If your parents say they will live there then I think you could do it. If you wanna play it safe I would just do a investment loan. As far as brrrr it depends on your comfort level and the size of the job. I like to do a hard money lender for around 3-4 months and then I refinance into a conventional loan and capture all that equity I built in the flip. I think this is pretty normal brrrr method. If you don’t feel comfortable or all the changes you need done or the timeline that can get expensive fast. Hard money should only be used for as short of a time frame as you can. This super wordy but I hope this helps.

@Igor S. I plan on being there.

@Will Armstrong Raleigh /Durham is very much an appreciation market. So you won’t find much that has strong cash flow like you will in markets like Clevland. But with out knowing more about your goals (cash flow, house hack, or fix and flip) it will be hard to give you advice. The broadest advice I can give you is, Durham typically is seen to behind Raleigh so there is more appreciation/growth opportunities there in most people’s eyes.

Ill be there.

@Igor S. I would be interested as well.  Let me know if you need any help with getting anything off the ground.

Does quit Claiming a property into your LLC count as an owner contribution?

@Guy Primo , I agree with @Caleb Heimsoth this is not a stellar deal, most investors have certain returns they look for in a deal.  The most common sniff test is the 1% rule, where the property can produce 1% of the purchase price every month, it's worth digging into and looking at the deal in more depth.  For me, I look only at deals that pass the one percent rule and then needs to have a certain Cash on Cash return before I make an offer.  At the end of the day, it's up to you if this deal makes sense to you and your qualifications.  

A side note is, I don't see you accounting for any maintenance or any property management if you will use a PM.  I also lean on being more conservative on my expense when I look at a deal, you only have 5% vacancy, which equates to about half a month of Vacancy a year.  If you live in a very hot area this may be acceptable but seems a tad slim to me.