All Forum Posts by: Nico Ferreri

Hello! 

My girlfriend and I are looking to move out of our apartment and house hack in a small multifamily property near Dayton, Ohio. Short term goal is to have the rental income offset as much of our mortgage/expenses as possible and long term I'd like to keep the property and rent out to cash flow. Looking to find an experienced agent with lots of experience house hacking with clients or themselves. Also looking to shop with lenders. This would be my first home purchase and looking for lower downpayment loan options. If anyone knows a really good agent or lender in the area please comment names/contact info. Thanks! 

Thank you for this! I think we are definitely in the same boat but you are a bit ahead of me. The plan after she graduates from PA school would be to rent out the side we live in and keep it as a LTR. Are you saying that instead of using the cash you had available to pay down 10% of your student loan, you used that to finance your 150k property? Since I have a little bit more in savings, I could probably pay off 10% of my student loans with a lump sum payment and still have enough savings between my girlfriend and I to put down a downpayment, especially if its a low downpayment owner occupied loan. Would paying off 10% of my loans even make a difference in my monthly payments you think to lower my DTI? Or would it be more wise to use that money to put down a higher downpayment since a higher downpayment would probably be required with such a high DTI?

Hello BP Forum! I'm pretty new to this industry, but have been soaking up a ton of info all summer reading BP books and listening to podcasts. I have a few personal finance questions regarding my student loans and my goal to lower my back end DTI. Im 24 years old.

I have about 100k in student loan debt between my private (4.2% rate) and federal loans (I wish I made a better decision with college but cant change it now!) My monthly payment in student loans for the foreseeable future (10 years) is going to be around $800/month. I have about 26k in my savings account at the moment and around 7k in the stock market. I'll be making around 55k with my W-2 teaching job. In summer 2023 when my girlfriend and I move to the city that she chooses to go to PA school, we will be looking to purchase a small multifamily property and house hack. My only worry is that with her having no income while in school, my DTI will be too high to get approved for an owner occupied low downpayment loan. My estimate is that my back end DTI will be around 50%. I know the Dave Ramsay method is to pay off debt as fast as possible, but then again I've heard investing that money instead is a better option. What should I do? Use 10-15k of my savings and take a chunk off my student loan debt? Refinance private loans to longer term period so the monthly payment is lower? How much of a factor is DTI? Especially if I have a good credit score, I'd have around 30-35k savings by next year (and my girlfriend will have around 30-40k in savings as well. Do those compensating factors outweigh a bad DTI? A

Any advice would be greatly appreciated! 

I ran some estimations using the BRRRR calculator on the website. I estimated buying the property for 10k and putting 75k rehab into it. Comps in my neighborhood are around 175k, and rents are between $1400-1600/month. Putting 85k into this with the comps being 175k seems like a great deal right? But in the calculator it showed that with my conservative estimates I wouldn't even be cash flowing after refinancing? Now thats with PM at 10% which I wouldn't hire, but I'm curious how a deal seeming this good wouldn't cash flow.

 Thanks Frank! I am in the process of getting the owners contact information to see if they are willing to get rid of the house! Regarding my long term plan, if it wasn't for this property mentioned in the post, my original goal is to house hack. My girlfriend and I will probably be moving next year to where ever she will be attending PA school. I was thinking of doing this deal with my neighbors house and maybe do some type of cash out refi to use for the house hack next year. If I don't purchase my neighbors house, I'd probably try to do a low downpayment loan option to house hack a small multifamily property. I am a social studies teacher for my W-2 job, but want to grow my real estate portfolio for long term wealth and financial freedom! 

Hello BP Forum! 

Right next door to my childhood home in a suburb of Cleveland, Ohio, I have noticed that the property has been vacant for years. When there was someone living there when I was a kid, he took awful care of it. The inside may have animals (raccoons), and the whole thing probably needs to be gutted. When that man moved out, they redid the siding because the city forced them to. I am looking into contacting the landlord (who I believe is an older woman that is losing money by owning it) and want to see if I can get a look inside (possibly with an inspector?) to see what it looks like. I feel like with the condition of the house and getting this property off the owners hands, I might be able to get a really good deal ($15-30k Cash offer, maybe less). Since this would be my first investment, I have some questions and was looking for some help! 

1. If I'm paying for the house in cash, how would I go about getting a loan for rehab costs only? I gotta imagine this will be minimum 50k to complete. Are there different loan options to choose from? 

2. I feel like paying in cash would be preferred with this landlord since she's older and probably would like to get rid of it, but is looking into a traditional loan worth it if I can get the estimated rehab costs included? 

3. Is there anything else I should consider? (I'm sure there's something I'm missing!

BTW after rehabbing I'd like this property to be a LTR

Any advice would be greatly appreciated!