All Forum Posts by: Nicholas L.

Hi @Pete Jimenez you're going to pay (1) closing costs for the cash purchase + (2) holding costs while you rehab + (3) closing costs when you re-finance; doesn't mean you shouldn't do it, just that you will have potentially significant out of pocket costs in addition to the money left "in the deal."  See what your cash-on-cash return would be.

Hi @Brandon White is the condo you're looking at a perfect fit for you because of job, commute, potential future rental income, etc.? I ask because an FHA loan is a great way to NOT tie up your cash, so are there other properties you'd consider that would qualify for an FHA loan?  And for this condo, have you run the numbers on what it would look like as a rental, or would it just be a great primary?

Hi @Ephraim Lett can you provide some additional information about your situation?  Why can't you get a mortgage?

Hi @Pete Jimenez I don't think your cashflow will be $249 since I don't see any allotment for vacancy, repairs, capex, etc. Also, what happens if you have to hire a property manager, or your HOA increases each year?

Hi @Calvin Kwon sounds like you've had someone pull actual rental and sale comps so that's good. Closing costs seem low, is that just an estimate, or is that based on an actual loan work-up? And have you verified that that's the actual HOA fee or is that just what's in the listing? This seems like a lot of your cash to tie up even if it cash flows.  (I'm in Nova as well so I know how expensive everything is, I've been looking out of state).

Hi @Account Closed - congrats on having a specific goal in mind.  I'm not sure I follow your question, can you provide more information? 

-If you purchase now using an FHA owner occupied loan, you would be living in the home.

-You definitely need savings for reserves no matter what - if you spend everything you have to put 20% down you might get stronger cash flow, but you will have exhausted any reserves you have for vacancy, repairs, capex, etc.

Hi @Kacie Heggemeier - I haven't done a seller financed deal myself, but in reading the forums and listening to the podcasts, it sounds like investors who use this method typically give the seller multiple options.  So, if you have all-cash or financing available, but you'd PREFER this to be seller financed, give the seller multiple options - and make the seller finance option the most attractive.

If you haven't yet check out this BP podcast - Paul goes into detail on the process of how he makes offers to sellers.

https://www.biggerpockets.com/blog/biggerpockets-podcast-283-18-houses-in-the-first-18-months-with-paul-thompson

And you may already know this, but make sure you're working with the right team members - attorney, agent, etc.  =)

Hi @Account Closed - will this be an investment property, or are you going to use it as a vacation residence for yourself?  If it's an investment property, do you have a property manager lined up or are you going to try to manage it yourself?  Are you purchasing it with cash or conventional financing?  If financing, what does having two mortgages (primary + secondary) do to your Debt to Income ratio (which will affect how much you can borrow in the future)?

Hi @Jeffrey Grieshop - do you have an actual purchase in mind, or are you just reviewing loan options?  And if you have an actual purchase in mind, will it be your primary residence, or an investment property?  Either way, I'd recommend going to more than one lender to see how the options compare.  You can also have your realtor review your loan summary to make sure nothing jumps out at them as unusual.  A "3rd party service you may select" doesn't necessarily mean it's optional, it just means you might be able to shop around / purchase it yourself.  You'd have to weigh the value of the time it would take you to shop around, against the few dollars you might save.

Hi @Jae Hee Hwang - congrats on your first purchase.  Are you going to live in this property or will you rent it out right away?