All Forum Posts by: Nick Broce

Thank you for the reply. I was assuming 20% down would be the minimum to get a little better interest rate. Which if i left 8 grand as a cushion that would leave 15k for the down and closing costs, thus my range. But then, I am a noob. What would your range be in my situation, if i may ask? 

Looking at starting my first flip. I have $23k saved up and am looking at houses in the range of 40-70k including rehab. I'm in Kansas city where the market is hot, so I figured the hard money loans are best for their speed. Am I right? What rates could I expect for a newbie investor?

I'm planning on doing my first flip this summer. I'll make an LLC, but there's no reason for me to get business insurance is there? I mean, if i'm already getting vacant home insurance, that's all i need right? I'll be the only employee and the one doing most of the work on the house, other than a few sub-contractors.

Also, what insurance companies are people using for home insurance during rehab? 

@Caleb Heimsoth no, I stopped college after a year when I decided I wanted to learn a trade and become an investor. I'm apprenticed to a general contractor who works on rentals. Wage is going up, but slowly. Why do you say flipping is a good way to lose money?

@Christopher Dunson @Chris Mason Ah, thanks for the explanation. Any hints as to where I should go looking for such lenders?

@Chris Mason Right but I have to be approved for a loan in order to get a rental property in the first place. 

@Caleb Heimsoth Correct, no debt currently. My only idea is to do what I was initially thinking and flip. At least until I have enough to hold a multifamily house.

I've been researching on house hacking a multifamily house, which was recommended by other users to me. However, despite good credit and the (estimated) $25,000 I'll have in one year, I'm skeptical as to whether I could be approved for a loan big enough with my small income. I'm 22 and only make $29,000 a year right now. Some test runs on USAA's website told me I wouldn't be preapproved for a 200,000 conventional loan. Are there ways to work around small income? What are my options?

Thanks for the replies everyone. The house hack seems to be pretty popular, I'll definitely look more into it.  

@Caleb Heimsoth  Wow, 10 months seems pretty impressive. What loan did you go for?

@Jim K. Well I spent a suitable amount of time after high school agonizing over what I would do, went to a community college for a year but dropped out when I made this plan. I've always hated being behind others, so I got really frustrated that I wasn't already starting whatever it was I'd end up doing. Then I moved to a 6 br house owned by a 23 year old man who lived there and rented to 6 or 7 college/grad students. And that's where the seed was planted I suppose. I've always been a planner, and I've always been good with money thanks to my parents (they gave me an allowance based off of how often I completed my chores, and had me use that money for buying clothes, shoes, or any extra things for myself). So it came naturally

I want to get into realstate investment and I am 22. Unlike many my age, I have a decent credit  (around 730) and about  $14k saved up. I made the goal of buying my first house or complex before I turn 24, and got a job as an apprentice to a general contractor who works on rental homes. I've been working there for 7 months so far and have about a year left to make my goal. I'm able to save nearly $1k per month. 

I've been reading books and articles, but the more I read the more I realize how much I've yet to learn; there's so many different ways to get into it. Given everything I've described, and the chance to start again at my age, what would you do to get started? 

Also, what kind of loan should I go for, and more importantly, where could I find it?

Note: I had a general plan of my first few houses being flips with me as the general contractor, then starting to buy rentals as I could. Thoughts on this?