All Forum Posts by: Nathan Fraser

for those of you following this conversation, which cities do you invest in and why?

Matthew H.

your cash flow must be really good with those numbers. thanks for sharing. The responses that i continue to receive on this topic are letting me know I'm heading in a good direction.  

Thank you all for your responses, this is exciting. I can’t wait to explore the possibilities.

hello BP community

Im considering starting my investment journey in Iowa because it seems to be an affordable investment entry market, but is it really? can any of you savvy investors out there who live in Iowa help me out and point me in a good direction? I appreciate your responses. 

Nate Fraser 

Hey BP community

So I am ready to start taking my first steps toward my portfolio. I was advised by a lender that I should go out and get personal lines of credit or personal loans to leverage as downs and/or rehab funds. I know that I have good credit and I have called around the banks in my area to see/know my options. When it comes to BRRRR and flipping, is this a wise move to borrow all of the funds for a deal? I'm trying to wrap my head around how I would pay back the hard money/private money and the banks and come out with any equity after doing the deal.

Thanks

Nate Fraser

Investment Info:

Single-family residence other investment in Sultan.

Purchase price: $330,000
Cash invested: $15,000

This is our first home purchase. We currently are doing a live in flip, we hope to turn this single family home into a two a duplex if allowable, or to complete the remodel and rent the house as a single family home when we move on.

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

This purchase was a little out of necessity. We were expecting our firstborn and needed to get out of our 500-square-foot apartment. It was the perfect opportunity to begin investing in real estate and we found a house in our price range that we could house-hack and increase our living space.

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

We found the deal through a realtor and used a USDA loan, negotiating our closing costs into the loan, therefore needing no down payment.

How did you finance this deal?

We used a USDA loan and rolled our closing costs into the loan.

How did you add value to the deal?

We renovated the home by updating the paint and trim throughout the house. We also removed the old, stained carpet from the stairs and added wood treads that matched the hardwoods throughout. We have plans to further renovate the kitchen and bathrooms.

What was the outcome?

We're still living in it and are enjoying the beautified version of this house. We're house-hacking by renting a room out, and we have plenty of room for our growing family.

Lessons learned? Challenges?

Pay other people to do the remodel! With two weeks to flip the house before the birth of our baby, taking on the entire renovation was not worth the savings in doing it ourselves.

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

Yes! Amanda McClindon at Century 21 and Troy Wardlow at Bay Equity were an incredible team in helping us understand the home buying process, finding a home, and financing it.

Hello BiggerPockets

So I just bought my first house. It’s a split level, 4 bed 2 bath. Each floor is split evenly. I’d like to reach out an ask what are the best strategies for getting a rehab loan without having to use future equity ( I need to use that for next house). I plan to keep this property and use it as a rental. By splitting it into two units I can get more cash flow from one property.

From what I understand hard money would need to be paid back quickly making me use the equity to do that. I’d rather take out a loan that I can have my renters pay back over a period of time so when I go to cash out refi, I get to use the equity to leverage the next purchase. Any advice?

hey there BP people

My wife and I are finding our market to be very hard for first time home buyers. We intend to buy and hold our first home until we are ready to move in a few years.

Much of what is available in our price range are condos and modular homes. We may be planning to start our portfolio after I finish school, in a much cheaper part of our state.

I know that condos are very risky for investing. But I don’t have a scope on modular homes yet. All we need is to be able to sell it when the time comes and carry the hopeful equity with us to a cheaper market. Are modular homes a waste of time or with some sweat equity can I gain in them?

Thank you for your responses.

Good morning BiggerPockets community

I’m looking to purchase my first home but my end goal long term is to have rental properties. I realize that with only a little cash on hand to work with that I may have to buy a single family house, upgrade it and gain some equity just to get myself into the market.

If that's the best strategy for me (open to suggestions) what are the best types of upgrades I can do for the most ROI? From my research so far I gather not all upgrades are considered equal.

Thank you all for your input.

@Charlie MacPherson

Thank you for your response

So, if I’m planning on keeping the home and not selling it (I’ll use it as a rental), am I the owner or the seller in your example?