All Forum Posts by: Patrick Fraire

Michael Solomon it’s true. I was told 50 miles I believe by my lender.

@Tyler Deuel nope only CA 😕

@Tyler Deuel I’m not sure but I’ll ask. 

@Aaron Hunt interesting. So in your experience Class A is worse than others?

Matt T. If it’s a B or A class neighborhood and your at -100 cash flow after conservatively estimating expenses...your really investing for the long term. I mean how different is -$100 vs $0 a month? For me that’s like two extra dinners a month with my girlfriend and I. That’s negligible. I wouldn’t even notice. What you will notice is the tenants you deal with. I’d choose a -$100 cash flow property in a B class over a +$50 I’m a C-. Regarding your question on cash flow getting better. Rents will probably go up slightly over time but your mortgage payment will stay pretty much the same. Even when it switches from mostly interest to principal, the total you are paying is the same. Someone else mentioned looking into amortization. You should google amortization schedule calculator and punch in the numbers. You will see what I mean. The big thing that changes over time is your equity. The cash flow doesn’t “appreciate” that much unless you hit a market at the right time. Hope this helps man and 97.5% of the people on bigger pockets have more experience than me so take what I say with a grain of salt. Everything I say on this is aggregated information from several resources not so much tried and true personal experience.

I’m currently using Stewart so good to see so many positive mentions of them here.

I’ve been monitoring the Pomona market for about a year. I didn’t fall in love with any house hack deals there. Made a couple offers but never got into escrow. It’s been a while since you posted this but curious if you made any progress on this.

I am currently in escrow on a triplex using an fha mortgage + a seller carry back (second lien position) Due to strict fha guidelines on 3-4 unit properties...I could only qualify for 517k with 5% down. The seller wanted 549k. We negotiated for about a month on and off and agreed to do a 517k loan and a carry back of 36k and the seller will cover closing costs. My lender is a wholesale lender and is pretty savvy with creative financing. We are 11 days into escrow now and no red flags so far.

Welcome Jared. I also work for a commercial general contractor. It’s helped me understand the different trades that are involved with rehabbing a home. I’m sure the same is for you! It will definitely help in your REI.

I wouldn’t buy anything that won’t cash flow post house hack. Might as well rent unless you want to gamble on appreciation. When I look at house hack deals I make sure my negative cash flow is less than or equal too what I would be paying in rent. I also make sure it at least cash flow neutral post house hack. Take with grain of salt. I am new to house hacking myself. That is just my criteria here in Southern California Market.