All Forum Posts by: Nick Brown

I don't know what you were "told" vs what is real.  I have people come to me frequently who were "told" things that are blatantly false.  Find on on-lot septic system designer in your area, call him, and ask if you have any technologies that are viable for that specific property.  

I design septic systems in Pennsylvania.  I can only speak to the laws that I am used to working with in this state...

If I have a property that has poor soil, I have the option of creating a fill site.  This fill site is nothing more than "good" dirt dumped on the property, leveled, and left to sit for a couple years.  After 2-3 years, it is considered native soil by the local Sewage Enforcement Officer, and can be tested for viability just like any other property.  An important step is officially documenting this with the SEO.  If you were told that no available septic technologies are not able to be used on the property, then a fill site might be an option for you.

@Shaun Weekes

@David Kelly

Thank you guys so much for the quick reply. I appreciate it

I got a contract on my first rental property two weeks ago. Duplex. I intend to live on one side and rent other side out. I was pre-approved by a mortgage company. Everything was going fine after it was under contract, and I had gone through several days of emails with the mortgage company concerning points/interest rates/down payment amount. We agreed on 3.125% conventional loan, 5% down. Everything seemed fine. Today at 4:45, I get a call from the mortgage company saying that “corporate” is now requiring 15% down because this will be an income-producing property. The fact that I will live there is irrelevant. I had been dealing with the same guy all along. He said he was confused by this, as no one in the company had any concern about this In the previous days. He couldn’t tell me why it now was a concern.

Does any of this seem normal? Is it normal for a mortgage company to not do 5% down on an owner occupied duplex?

I have no problem making calls to other mortgage companies on Monday, but if I ask here first and find out that this is totally normal, I won’t bother.

Thanks everyone

If I'm buying properties for long term buy and hold, and am buying quality properties with minimal/no rehab, and with little/no cashflow (buying for long term loan pay down, equity, and tax benefits), is it hard to get multiple mortgages? Do the lenders look only at DTI? I have no debt. I have a W2 paying ~90k.

I found a 4 BR home next to local hospital.  I immediately began running numbers for a rent-by-the-room scenario for travel nurses.  I found some articles and old forum posts on BP last night that discussed problems with financing and insurance for this arrangement.  I called my local insurance company, as well as two major companies and was told "good luck."  The last one told me I'd likely pay a small fortune for this policy.  For any of you who use this strategy, can you tell me who your insurer is, and cost of premium?

Many thanks for your time.

I found a property in foreclosure. It’s a former commercial property with an apartment upstairs. It seems reasonable to turn the commercial space into two more units. However, it’s just outside of town and is serviced by the sewer, but not City water. It has a well. Running three units off of a well seems risky. Any input?

@John Morgan your reply is greatly appreciated, and actually strikes a chord. I’m not completely blind to other facets of the investment puzzle, but monthly cash flow is, by far, my primary concern and desire. When you say it’s not complicated (as several of the replies have echoed)- that’s exactly where my thought process is. If I account for all the expenses (fingers crossed) in the calculator, then it “seems” fool proof. Again, not being completely blind to other factors: inspection is good, cash on cash is reasonable, etc, etc.

Because I’m new, I’m most comfortable with investing somewhat locally. Recently divorced, so a house hacked 2, 3, or 4 plex is my hope. I currently live in VERY rural area. Am hoping to buy in one of several small-medium towns within an hour of where I am now.

I’ll account for PM in calcs, but will do as much as I can initially. I’m a nurse working OT every week, so we’ll see how that goes.

A nice triplex just showed up in a local town that looks to be in very good shape. There is a drawing of the layout in the ad, and it appears that the one unit is enormous, and could easily be converted into a 4 plex quite easily. I'm thinking this would give me a good shot at a BRRRR, as well as increase the cash flow

Thank you all very much for the replies. I’m very grateful. If anything else I’ve said spurs further conversation, don’t be afraid to speak up!

As I prepare to invest, I have the Pro membership, I watch endless videos and listen to every BP podcast, I've bought the books, etc, etc.

"Start with the end in mind."  What is my goal?  I am simply looking for 'a little' cash flow.  Not looking for 300 doors, 100 doors, or even 50 doors.  I would just like $1500-2000/month supplementary income above what my retirement accounts are going to supply as I roll into retirement in 10-15 years.  

Monthly cash flow.  That's it.  Long term appreciation, loan paydown, etc... that's all icing on the cake.  But I'm only looking for extra $$$ coming in each month.  That being said, as long as I am diligent with the numbers on the calculators, I get a good property inspection and find that the property is sound, and do my best to get good tenants, what else matters?  What else do I need to be mindful of as I'm shopping for property number one?  If I ONLY focus on the goal of cash flow/door, is there any risk that I'm setting myself up for?

If you're loading a smart *** answer, please just keep scrolling.