All Forum Posts by: Nathan Doherty

Hi everyone!

I’m working on getting my second deal under contract and I’m feeling conflicted.

I usually can look at properties in my area and really have a good idea of the current value and the ARV but ironically the one property my wife and I are most interested in is giving me problems. I'll explain below.

I'm currently active duty and we live in a house that I purchased with an fha 203k loan. We decided we are going to rent this house out and move to another house in the same city with plans to rent both once we move away. I still have my VA benefit and I'm already preapproved so it's all about finding the deal.

We found a 3/2 with 1500 sq ft and a 2 car garage. In a nice, safe neighborhood and backyard is on a canal. It’s mostly updated but we could add some value in the bathrooms and kitchen.

The list price is 183000 and it has been on market for about 6 months. I had my realtor run us some comps and those comps show the projected value to be about 248000. I think this is a lot higher than the actual value even if the home was in absolute best condition.

Most of the homes in the neighborhood are going for about $90-115 per sq ft. They’re currently asking about $120 per sq ft.

From everything I’ve looked at I’d be comfortable paying up to 160k for this house because based on all of my numbers I could cash flow at that price when I move out. But I would also like to get the best deal possible and when I look at equity I feel that I should be offering around 140k but my wife and I really do want the house and I don’t want to low ball the seller too much. Any thoughts are much appreciated and thanks for taking the time to read!

@Damian Bialonczyk great ideas! I am married and the wife is not onboard with a roommate. But I am in the military so I still have a VA loan available. What we are considering is buying another property with the VA loan and moving out of this one to start cashflowing.

Hey everyone! Just wanted to share my experience with my first investment property and get some discussion going!

When I bought this property I was 21. I used an FHA 203K loan to fund it.

I didn’t even have money for the down payment so I borrowed from a friend. Here are the details!

Purchase price 95k (short sale)

Wrapped 15K into the loan for floors, kitchen, and bathrooms to be updated.

1100 sq ft 3bed 1&1/2 bath

Total mortgage 110k

ARV is about 140k

Not the best numbers but I needed a place to live quickly and knew I’d have some equity with low risk and be able to cash flow easily.

I currently live in the house and I’m looking at my options of buying another house and renting this one out. Should cash flow about 500/mo

What would you guys do if you were in my situation? I have before and after pictures of the project but wasn’t able to figure out how to attach them so let me know if anyone has any suggestions on how to share them!

@Will Fraser Thanks for the response! That definitely sounds like a solid plan! I’ll see what I can do!

Hi everyone, I’m looking for some advice. My mother has a property that she currently occupies. She has a mortgage on the home and owes around 110k. The house itself is from the 1950s and not in great shape. Because of the neighborhood it’s in she still has equity in the home as it’s valued around 190ish I believe. She’s stubborn and doesn’t want to sell for less than 195k. Based on comps, a new construction on her property should sell for 400-500k. I would love to figure out a way to tear her home down and build new construction then sell the house but I have no experience In that field. Looking for any advice or opinions. One thing I have considered is possibly getting a hard money loan for the new construction then paying off the loan once sold. Thanks in advance!

@Milton Rivera I will be living in the first property but could rent it out and cash flow pretty well eventually, I either would want to do that and house hack the next one or stay in this one and have all units occupied in the next one, just depends on the numbers I suppose.

@Milton Rivera I have, but my concern is that I may have trouble getting a bank to give me another mortgage based on my income

Hi everyone, I just closed on my first property and I’m already looking for ways to get my next one. I bought my property with a 203k loan and will have about 20k in equity once the work is complete. I’ve considered many strategies for obtaInIng my next property which I’d like to be a 2-4 unit multi family. I was thinking about using a heloc or equity loan as funds for the down payment on the next one but I am worried that I’ll have a hard time getting a mortgage on a second property due to my low military income of about 45k annually. Any advice or insight is appreciated!

I will soon be closing on my first property which I’m purchasing as a short sale. When this process started I offered the bank 80k and they countered asking for fair market value of 95k and stating that they need a net proceeds of 79,847. My realtor mentioned that once they clear that number the leftover money may go back into my principal but he wasn’t sure and my loan originator told me she was also unsure but she did say that banks can’t profit from a short sale. Is anyone able to clarify for me? Thanks in advance!

Hello all, 

 My name is Nathan Doherty and I'm new to BP. I've been interested in real estate investing for quite some time and have been doing some research and I'm leaning towards starting off with buying a multi family home to live in while renting the other units out. I'm active duty in the Coast Guard and will be moving to New Orleans in November of 2017. If anyone knows anything about the market there and/or can speak about this method I would love some input! All responses are welcomed! Thanks !