All Forum Posts by: Nicholas Olson

I understand that, but if you keep it as a primary residence and do some sort of house hacking deal where you rent out rooms, can you get passed that?

I have a question that I am looking for a good answer on. I want to know if I buy a four plex under an FHA, claiming that one of the units will be my primary residence, can I move somebody into the unit I claim as my residence and collect rent from them without issue? I just want to know if problems will occur for doing this.

Nicholas

That has been a hurdle on deciding the best way to approach this because of current rates. I have thought about buying a four plex and claiming one of the units will be my home to take advantage of a lower down-payment. I am not sure if this is a smart way to go, but it seems like a good viable option to just grab a property quickly. 

Thanks for the response. I agree about probably having to do some smaller deals first to create a track record. My current track record is only dealing with house flips. Is there a good strategy into buying a smaller multifamily property while limiting out of pocket cost. I don't have the option for house hacking, but I do have some friends who are willing to invest money in some projects with me. Just not sure how to set up a partnership in this, especially if I am doing all the work for investments. Any advice on this would be appreciated. 

Nicholas

Hi Everyone,

I have been running evaluations on properties trying to figure out what I want to do in the rental property world, and I have decided to try and go into buying bigger multifamily properties. The place I am at now is trying to figure out how to get the funding to do these kinds of deals. I know there are many avenues to go down for funding, but I am looking for good advice on the best approach for this, and if using investor money is the best way to go, what is the best way to set up the payout back to the investors, via.. partnership or ROI. If anybody has any thoughts on this and wants to weigh in, I would be grateful.

Nicholas

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $232,000
Cash invested: $65,000
Sale price: $495,000

This was a house that I bought during covid for a project, and I completed all the work on this project myself. It was in a good community that had a strong sale market. This house was roughly 2500 sqft, but needed a little change in layout.

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

I saw the potential for a big profit margin based on the current market conditions, and what the house was currently listed for.

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

I had an alert sent from Zillow when this house hit the market. The house was originally listed for $262,000 and I was able to get the price down to $232,000 based on the condition of the home.

How did you finance this deal?

I financed this with a conventional mortgage. I only put 5% down, because I wasn't planning on keeping this house for very long.

How did you add value to the deal?

I completely remodeled the inside and outside of the home. I saved money on the labor cost by doing the work myself. Luckily I have that capability.

What was the outcome?

At the end, I sold this house and was able to make around $150,000 profit on this deal.

Lessons learned? Challenges?

If I was to do another house flip, I would definitely hire more things done to avoid trying to do the work around my regular job. I am getting too old to work like this and it was just too much.

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

I had a real estate agent to submit the deal for me and help get everything closed.

Hi everyone.

I am new to this site and am currently looking for a mentor who can help me learn the rental market.  I have flipped houses in the past, but I am interested in creating a good passive income.  I am open to advice from anybody that has had great success.  I am really just trying to find the best place to start.