All Forum Posts by: Nicholas L.

Hi @Pam Holbrook are you financing the purchase, or purchasing in cash?  I think you're going to pay more than $2500 in closing costs, and then you'll have holding costs during the rehab and a second round of closing costs if you refi.  Is the $1100 a month an estimate, or based on actual rental comps?

Hi @Mike Geier - are you working with a real estate agent?  They can pull comps for you.  If comps don't support a starting sale price you're happy with, set it higher and see what happens.

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)?