All Forum Posts by: Nicholas L.

@Simon Obas I looked at the listing, usually for a BRRR you want to be able to increase the ARV substantially and it's not clear to me that's possible with this house. Are you working with an agent?

@Julyana Silveira based on the information you've provided, I'd say continue to rent and continue to save.  Everyone is impatient to do their first deal, but in the short term, renting is a great deal.  No closing costs, financing costs, or taxes to enter into or exit a lease!  You can watch the market, continue to save, and move as soon as a lease is up.

Where in the US are you interested in living - any places besides Florida?

@John Crisp it's possible, but this doesn't sound like enough cash. If you had a major repair and a couple months of vacancy in one, all your cash would be gone. And in order to refinance and take cash out, you need to increase the ARV of the house, which typically means you'd be spending money on a rehab - and also need cash for that.

Rent is counted as income, but requirements vary by lender - some want 2 years of rental income shown on tax returns, or will only count 75% to account for expenses, etc.  It's specific to the amount you're trying to borrow, and from whom.

@David Miller any reason not to keep the live-in flip?  I wouldn't worry about cap rate, I'd focus more on a specific market and on preserving as much of your cash as possible from transaction to transaction.

@Jack Casica agree on not selling the house hack. You likely won't be able to pair a HML with a traditional mortgage. I'd try to find a lender that will count your rental income, followed by getting a family member to co-sign.

@Matthew M Spolsky congrats.  I was watching this one on Zillow since it had been on the market for so long.  =)  Were the leases you inherited solid?

@Kevin Dubina if you make an all-cash purchase, whether it's with your own cash or a family member's cash, you'd still be doing a single cash-out refinance into a mortgage when you refi.  So, I don't think there is a difference in the tax situation here unless there is something we're missing.

Also, in the numbers you cited you're leaving a substantial amount of cash in the deal, because you will not get 100% of the ARV out when you refinance.

@Bart Bielski get the strongest W2 job you can and house hack.

@Whitney Robert Caldwell get it rented ASAP.  Do the math and you'll see it's not worth holding out for the higher amount.  11 months @ $1800 per month is the same as 12 @ $1650 - vacancy kills cash flow.

@Nathan Kennedy yes.  All debt counts toward your debt to income ratio - primary residence, investment properties, car, credit card, etc.