All Forum Posts by: Nicholas Armstrong

Both units are 3/2 as well. I forgot to mention that...

@Arianne L. 

Purchase price: $120,000

Rehab: 5-12k

ARV? Thats a great question! A house at the end of the street from my duplex sold for $165,000 1 month ago. 2 blocks from my house they are selling closer to $200k. It was difficult trying to comp considering it is one of three duplexes in the area (That I know of)

I know that the prices of the SFR's in the area really doesn't give a good comparison considering this is a MF. But I would assume that it will sell in the future based on how much income the property provides?

@Jacob Sampson

Thanks for the words of wisdom!

I want to try my hardest to not over leverage myself. I have heard way to many horror stories from the 08-09 crash. And it's funny that you should mention that.. Most of the investors ( I have learned from) who have been in the game longer than 20+ years use a hybrid hold/sell strategy. They don't hold ALL of their properties. I would assume this is so they can create a comfortable balance?

Originally posted by @Arianne L.:

@Nicholas Armstrong Congratulations on your purchase!

It depends on what your current loan terms are (interest rate, are you paying PMI?) compared to loan terms available in the future, and how much equity you'll have in the property after a year. Typically, owner occupant loans and investor loans vary by .5%. If that was still the case a year from now, I wouldn't bother refinancing if it was just from a cashflow perspective. If you are currently paying PMI, then refinancing so that you don't have to pay PMI will increase your cashflow.

If you used a 203k loan, you would want to refi out of that as soon as you can since interest rates are higher.

With regards to refinancing to get cash out, it depends on how much equity you can convert into cash. You have to weigh it and see if the extra costs incurred by refinancing outweigh having the cash in hand. 

 Great! Thank you for the input!

I am currently paying PMI, so it sounds like it would be a good idea to refi. I also have another company piggybacking the down payment so theres some added expenses as well.

I did not get a 203k, I was going to try. But the duplex I bought only really needs cosmetic updating. It was built in the 70's and that was the last it was updated :) I also bought it at an almost 15% discount so hopefully after updating it will have some equity to put some cash in my pocket. Would you recommend cash out refi or a HELOC?

Hello everyone! 

I would like your thoughts on something that I have been thinking about recently

I have purchased a duplex that I will be occupying. My plan is to update both units, rent and refinance to purchase another property later this year. BRRRR.

Here's my question:

Since I'm getting a low interest owner occupied loan to purchase this duplex, does it make sense to cash out refinance after a year?  Or should I just keep the current low interest loan I have? On the BP podcasts I've heard Brandon talk about the advantages of having an owner occupied loan on a multi-family property so I want to make sure I'm making the correct decision.

Any thoughts on this subject would be greatly appreciated! Thanks!

Hello all!

I'm looking for a REIA in Birmingham AL.

Any suggestions?

Great @Nate Wightman

Thanks for the tip!

Hello all!

This discussion may be a bit cliché, but honestly I don't care. Because I am a happy fellow.

It brings me much joy and excitement to say that (mostly because of what I've learned on BP)  I am close to finishing up on my first deal.  For the past month and a half I have yelled, doubted, loss sleep, argued with family, been made fun of, re-written contracts, haggled, endlessly read, endlessly listened, second guessed myself and worried about this deal. BUT, I persevered.. and it's nearing its end. This deal has taught me that Murphy's law is very real, and very scary if you do not know how to play with numbers, and if your realtor is new to the industry.

I am opening up this discussion for simple education. Nothing deep, nothing confusing, nothing technical. Share one simple sentence that you wish someone would have told you at any point in your investment ventures. I will start us off!

If I could, I would go back and tell myself..

-To never assume someone knows what they're doing just because it's there profession. It may be their first day.   :)

Go!

@Randall Brooks

Absolutely!

Let me know when your in town and we'll grab some coffee.

I looked at several Multi-families in Anniston/Saks, but because I'm house hacking I didn't feel comfortable bringing my family there to live. So we found a great deal in Oxford! 

Originally posted by @Micah Copeland:

@Calvin Avery

Unless your local real estate laws say otherwise I believe your friend is mistaken. I have a simple one page purchase contract I use for my sellers and buyers. Then I take I take both contracts to my title company and they do the rest as far as the assignment goes. I usually put "Contingent on inspection" or "Contingent on financing" in my contracts as well, but besides that its pretty simple. Feel free to message me your email and I will send over the contract I use as an example. I would recommend someone who knows your state laws to look over it before you use it to wholesale.

 Is there anyway you could send me that example contract?  Im confused on what happens if you don't find a buyer or don't have the cash to buy? Also, what costs are associated with the title company etc? 

Im putting together a buyers list as of now, and wanting to learn as much as I can while doing so!

Hey! Randall Brooks I'm 22 as well and I just purchased a duplex in the Oxford AL, area. Because of the great benefits, I will be house hacking this property! I haven't had too much experience with this subject as of now, but I'll definitely keep you in the loop with things that I've learned through this experience. But, I do have to go ahead share with you something I learned right off the bat purchasing this duplex.. NEVER assume someone knows what they're doing just because it's their profession or because they get paid to do it. The purchase of this duplex was delayed a MONTH because my realtor did not right up the contract correctly... TWICE! And it turned into a huge mess because the original (incorrect) contract was already signed by both parties. It was a big frustrating mess. It's cleared up and everything is golden now, but I learned my lesson for sure! Also, I'll be using a new realtor for the rest of my investing career. ;)