All Forum Posts by: Nicholas Cavato

 Thanks Ashish, we plan on living in the home for the ful year so I am not as worried about that. I appreciate the education and certainly know about the acceleration clause.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $270,000
Cash invested: $20,000

Current residence, will be renting out long term starting March 1st, 2025

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

This was our families initial home purchase after renting for a number of years.

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

Had the help of David Armenta of Armenta Realty, who walked us through the process and taught us the importance of our first home purchase.

How did you finance this deal?

VA loan

How did you add value to the deal?

Updated backyard with artificial turf, painted entire exterior of home, replaced carpet with vinyl planks.

What was the outcome?

Will be renting out long term beginning March 1st, 2025!

Lessons learned? Challenges?

I bought this residence with my VA loan but realized I should have used either conventional or FHA due to the low cost of the home. I plan on holding this home long term due to the low interest rate (2.75%) and renting it out long term to cash flow and build equity simulataneously.

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

David Armenta of Armenta Realty

Wow I did not know the PMI would be attached for 11 years and I did not know about the UFMIP either. My credit rating and DTI should not be an issue. I have been a loyal W-2 worker for a long time now until I was educated about the financial benefits about real estate.

Thank you for the lesson! 

 Hey Christine, I am in a similar situation as Pooja, would you be willing to share your lessons learned document? Thanks!

Looking for advice from you BP pros out there.

I will be purchasing either a single family residence or multi family residence home in the Cleveland, Ohio area no later than January 2025 and intended on purchasing using an FHA loan with an already formed Ohio LLC. I plan on doing a live in rehab, moving out of the residence after 1 year and doing a long term rental after moving out.

However, my lender told me I can not purchase a residence with an FHA loan under an LLC, which I now understand.

In general, is it more financially beneficial (cash on cash return) to purchase:

1. With an LLC using conventional loan

Or

2. As an individual with an FHA loan

I appreciate any additional guidance you all have for me.

Thanks!

Thanks for the responses everybody. I’ll give MileIQ a try, I appreciate the help!

Thanks man!

Hey everyone,

I'm searching for the best app for tracking mileage on a business vehicle while using the same vehicle for personal use. According to the IRS the vehicle needs to be used for 50% for business and needs to be "ordinary" and "necessary".

Anybody who can give their expertise I would appreciate it.

Thanks!

I e-mailed the city council people and the response I got was basically "We're not allowing more than 250 STR's in our city so get in line". Oh well, it's not worth the fight for me at this point.

Thanks Michael!