All Forum Posts by: Nazz Wang

I would move on. Shortsales shortsales, don't get your hopes up but every once in a blue moon it works out. Don't depend on the blue moon. Get other deals.

1. Think about it like a saving account. Instead of "breaking even", let's assume you make back your down payment amount in two years, you just got 50% interest for two years on your investment, which is very impressive. Now, you have problems with your math. You will not be making $1200 a month net with a $150k property. Your expenses excluding mortgage should be about half of your rent, and let's hope your mortgage is less than Hal so there is something left. Your down payment doesn't disappear, it is your equity in the house and you will get it back plus some when you sell the property, if you do it right. 2. Flipping is very time intensive too. If you have a full time job, are you sure you can show up everyday to check on progress? Getting an experienced partner is a good approach. In my opinion, you either have to have experience or money. When you have both, you can flip or rehab with calculated risk. When you have neither, it is gambling.

I think it is an interconnected game. One needs cash flow, aka income to leverage money, thus the importance of debt to income ratio. But one also needs appreciation, so there is money to buy cash flowing properties. Usually appreciation driven markets are at price levels that needs To be leveraged with a loan or two. So, one needs to get appreciate, cash out, buy more cash flowing properties to increase income, then borrow more money to buy more expensive appreciation properties, cash out from that, and buy more income properties..... Really this is a dilemma of the chicken and the egg. Which one is more important?

700 rent for both properties or each property? If you have done you numbers, feel free to post them here so everyone has more to go off of. What kind of neighborhood? Are you planning to manage? What are your taxes like? Are you going to house hack? I hunk more background would help in everyone's comments.

I'd say to skip the relationship stuff: banks can't be convinced. They look at your financial picture and decide if you are within their lending criteria. Have you considered asking the lender what he/she is hoping to achieve with the meeting? Start with what they expect. It's like a job interview where you are the candidate. If you have any real estate history, organize and print, put in a nice pretty binder. If you don't, really look at what the lender wants to see. 

Good luck.

I use "my smart move" and choose to have reports paid by tenants. It is $12 per adult. You can also choose to pay for the screening.

Find a place where the market is not hot and prices are not high yet.

Be an intern for local investors, like a rehabber or a flipper.

Look for other types of RE investing where the prices are good, like multifamily, apartment complexes, etc.

Become a loan officer for the next few years.

Become a real estate agent / broker for the next few years.

@Nathan Buss @Nathan Emmert 

I completely agree with Nathan Emmert. The largest items to still need to be filled in are vacancies, grounds keeping, low repair and maintenance budget and lease-out fees from PM. Just curious, if you are planning to mow the lawn yourself, why not do the lease out yourself and self manage? Why pay a management company if you are going to be doing all the work? Managing your own rentals is a great way to learn really fast what to do and not to do in your next deal. Being a 4 plex, I would say in most cases your turn over will be higher that SFR's. I personally would budget one month vacancy every year, and $1000 R&M reserve per unit per year.

Would it be possible to house hack and do an owner occupied? Do FHA work with expat income records? I don't know the answer to these question but maybe it is worth looking into. Since you are looking for multifamilies only up to 4 units. What did your lenders say?

I have used a combination of sources. Redfin has been the most accurate in information, but they only operate in selected markets, and they don't provide the listing agent's information. I would identify a listing in redfin, and use zillow to find the listing agent, and contact them directly when it is appropriate to do so. I do spend a lot of time looking for realtors that meets my needs too and often than not, I instruct them to contact the listing agent.