All Forum Posts by: Neil S.

I am starting my first full time job in May and have been scouring the market in South Dakota for a residential multifamily deal to house hack in. It seems that in my area any of these types of properties are purchased within a day or two from being listed or even before they are supposed to be listed. They are being purchased for asking price or above no questions asked, and quite frankly would not cash flow with the financing i have available (conventional/FHA).

My question is this:

Do i rent and save money and look to purchase a deal as an investment only property (25% down) or do I pay approximately $400 more a month to purchase a live-in flip? I have found a 2-1 property listed at 160k in great shape with an unfinished basement, and comps of 4-2 with the same square footage of the finished house have sold for 200k-220k in that area. Is it worth paying a bit more per month and up front to get the cheaper financing?

I know similar questions have been asked a million times so if there are any other posts please direct me to them!

Neil

@Chris Mason,

Thank you for your response. I could see where that might get me in trouble during the underwriting process.... I suppose it depends on how I structure my payments. I know that my potential employer owns rental properties of his own so he might have some tips on the subject!

Thank you everyone for the replies! I am leaning towards the commission Job, and it looks like it will be tougher to get the best loan available like Kevin and Andrew stated above. If I have a set salary for the first few years before converting to commission, would this make it easier to get the conventional loans right away? 

For example a set salary for two years of 60k and then converted to commission with the potential of 100k plus. 

Graduating college this year and have multiple offers for employment once I am finished this spring. Taking a tune from @Scott Trench's book Set For Life, I have been very interested in an engineering sales position that would start off on a salary but transition to a commission salary within a short period of time. Although I see that this has the greatest potential to make a higher wage in the future, my question is this: 

How much harder is it to get conventional loans with a commission salary? Would a bank be more apt to make conventional loans on a set salary of say 60k or a commission salary that is making more money per year?

If you have a sales job or know people that might have any information or tips on this topic, tell me your story below!

-Neil Schlimgen

Thanks for keeping us informed Brandon!

Joe, 

Multi family buy and hold. By investor friendly I mean the brokers fees for their agents. When I get my license I would like access to the MLS and to be able to write my own offers with a low fee structure.

I am planning on getting my real estate license to use as an investor and not necessarily for a full time position. Does anyone know any investor friendly brokers in South Dakota and what their fee structure might be? I will be located in the Sioux Fall Area. 

Any information would be appreciated!

Neil 

Raphael, this is an interesting strategy. Could be useful if needed for renovations cost I suppose. Would this type of loan be tax or penalty free since there is interest? 

Mike,

Thank you for your input. I have heard of many people converting their 401k's to a Roth IRA before retirement age to withdraw for real estate investing and other purposes. So does your answer mean that you would add to a 401k to the employer match, max it out, or invest that money in other ways?