All Forum Posts by: Nathan Atkinson

@Nick Anderson

Unfortunately, you guys could get into some trouble if you wanted to use a FHA loan like that. However, there are a few other low downpayment programs that you could utilize on an investment property. I've seen multiple 10% down programs for investment properties and you could use a concession to get a 2-1 buy down with that to drop your rate if you find the right property.

Hopefully, that helps! Feel free to reach out with any questions

@Naqib Hossain 

Hi!

Glad to hear you're getting into investing! This one could have some good potential! What part of Saint Paul is it in? On this one, the amount you can spend will really depend on the return you could get from the property and the rate of return you would like to get. If you were to spend 100k on rehab then your COC ROI would be a lot closer to 7%. How much are you estimating the rehab costs to be?

Hopefully that helps a bit!

 That's a great time to buy, prices usually fall from june-february. It will be interesting to see how prices move this next year, I think it will all really be market specific. There are little pockets in MN currently where homes are still appreciating or declining much slower than the average market. 

 I like that you have exposure to a few different markets! I actually just went under contract with a buyer yesterday on a single-family home just south of Columbia Park! How much are charging for rent and how many bedrooms and bathrooms is each unit?

House hacking is a great strategy! LOL were your deals off market or on market? Pictures make a huge difference in perceived value. The sales process always starts online so if your pictures are taken on an old nokia phone, you might not be marketing the property properly lol

@Tyler James Mass

I wouldn't buy this deal. Even in today's market with higher rates you should still be looking for cash flow. Cash flow is king! Also, if you have the 32k for a downpayment you could buy multifamily unit and make it your primary residence and rent out the other sides. Just a thought, my main point is that there are deals out there, you just have to keep looking. There are homes on the market currently that would cash flow in the right situation. Most homes on the MLS don't have crazy wild returns but you can find solid deals and I'm finding more and more heavily discounted single-family homes if that's an avenue you're interested in.

@Dumisani Thomsen This scenario is one where there won't ever feel like a 100% correct answer. There are a handful of options for you to consider. Without repeating any of the other responses I would recommend looking into the highest and best use of each of your properties. I would see if there is a value add that can be made or if a property can cashflow more as a pilot crash pad(I saw a property like that the other day and it cash flowed decently for the owners), etc. If your current properties are being utilized to the max then it would just come down to comparing the gain from buying a new property with the costs of getting into that property, if the gain outweighs the costs then it may make more sense to purchase a new property. Also keep in mind that in this current market there are a lot more panic sellers than we've seen over the last few years. I've seen homes reduce their prices 100k over the course of a month and recently put a home in Northeast under contract for 70k below list price.

Welcome to BP @Dumisani Thomsen!! 

Hopefully you get some value from these forums! Like @Evan Kraljic said, I would definitely looks to network outside of these forums to help expand your investing knowledge even more.

House hacking can be a great strategy and it's impressive that you guys were able to scale to 8 units in 3 years. I love the ambition to double your portfolio in one year, I hope you hit your goal and more! 

What parts of Minneapolis did you buy in? I'd be curious to hear a bit more about your properties and what's been working well for you. 

Hi Megan, welcome to BP!!

In terms of a starting point I would definitely network and learn from bigger pockets as much as possible. Knowledge is key! There are local biggerpockets meet ups in the Twin City area that you can attend. 

Having anxiety over purchasing a home is very typical and I see it in almost all of my clients. I'm glad you guys were able to purchase your first home! There are definitely multiple tactics you can use to obtain a second mortgage, you can get a HELOC on your current property are use that money to buy another property, you can buy another primary residence and rent out your current home, there are loans that allow you to buy an investment property with a minimal downpayment, etc.

 It's great that you guys are able to save 1000/mo! You may be able to perform on a property earlier than expected. What strategy are you looking to utilize and where are you looking to invest? I can help give you some advice on what you could do here in Minnesota or in Western Wisconsin! Let me know what works best and if I can help in any way, good luck in your investing journey!

Hey Justin!

I'm in the area and would love to help out if I can. First I think you should look at your current home and figure out what the highest and best use of it is. Does it make sense to move out and rent it? sell it? remodel it and rent it out? Once you know what you're doing with that then you'll have an idea of your financials going forward. The amount of money you can use will impact the investment strategies you can use to an extent. Once you know how much you can afford to spend then its time to pick a strategy(BRRR, buy and hold, flip, etc.) Once you have those few pieces put together then you're ready to start finding a property that fits your needs!

That's just my quick 2 cents, let me know if you'd like to discuss further:)

This sounds like it could be a good idea! What city are you planning to do this in?