All Forum Posts by: Nick Burkhardt

@Andrew Magoun Thanks so much for the local advice! I know how I'm voting come this Nov.

@cara lonsdale I've read a little into the 203K loan program and it seems like a good route to build near instant equity and spread it out over the life of the loan. What other options should I look into that aren't FHA? Now my wheels are turning, and I'm thinking about how I can stretch to reach 20% conventional (looking for options on how I can pay less through a conventional program) down payment. Say I find a 2-unit that needs some work for 200K, how can I stretch to reach that 40K (20% down) mark and avoid the cashflow killing PMI. I need some in reserve so this plan would take longer, but I could avoid 30 years of PMI, and if there's a way I could pay less that 20% conventionally that would be even better.

Is there a program that can give me around 5%-10% down conventional (or that has a limited PMI) that can give me some cash for rehab at the same time?

@Brent Coombs ok ok. I understand that. Next question! Where does that rehab capital come from? Your mortgage loan? Savings month to month? Excess from my savings? What makes the most sense?

@Andrew Magoun great advise! What exactly are the increased fees? What is tenant heavy rent board? I am actually thinking about Westbrook and South Portland just because of purchase price.

@Brent Coombs so you're talking about buying a multi that needs some work and doing some rehab on it, thus allowing you to buy lower and increasing value through sweat equity? My mentor wants to get me and my fiancé in a multi that doesn't turn us off to investing. He wants us to have good tenants and stable income, which as a new investor and as it is going to be my home for at least 1-4 years (while I save more capital for my next deal) I can't really argue.

Thoughts? What am I missing in all this? I feel as though I'm thinking like a Ford when I should be thinking like a Ferrari.

@Brent Coombs woah woah. This is gold! Thanks for the rule! Are you assuming there will need to be a rehab cost in all your deals? Luckily I grew up as a carpenter's son so I can do all the work myself.

So my broker could provide my comps, or what specifics go into making a "comp"? Bedroom #, Squ Ft, Location? That will help me understand this 70% rule better and be able to run the calcs myself

@caralonsdale thanks so much! Really excited to get going! I didn't know conventional offered a lower dp. I thought what made it conventional was the 20% down. I'll have to look into that!

If cash flow isn't the best indicator of a good or bad deal, what is? I'm doing these calculations and trying to find out what is the most money I can make on a monthly basis while having decent tenants. That way I can replace my current savings and do it again. @Brent Coombs maybe I am expecting too much from my first deal. What is the top indicator of a good deal in your opinion?

Yeah I've heard that same thing about winter providing some sort of advantage to the investor. My biggest concerns are using FHA and how that hurts my cash flow, using MLS and not finding GREAT deals in my hot market and how quickly I can get out of the home to start making money on my occupied unit (I understand with FHA the 1 year minimum). Under any circumstance can you use FHA again?

Hey BP community, I need some advise! I moved home two years ago and was able to save 35K cash and am feeling like I'm approaching the point of investing in my first multi. I want to buy and hold for long term wealth building. I have been working with a broker who is an investor himself and is more like a mentor to me, teaching me things to look out for and property analysis. I'm in a super hot market in Portland ME and as we fast approach winter I'm looking for some advise. Should I pack it in for the winter and continue burying paychecks or should I look to invest now. I realize action is key in this game but have been looking through MLS on a FHA loan and the numbers are just ok. Any and all ideas/advise would be great as I continue to formulate my plan for my first transaction. Any locals to the Southern Maine area would be very helpful too!! Thanks so much guys! Hearing all your stories and advise is helping to keep me motivated to get out of my parents basement! -NB