All Forum Posts by: Paul Bermingham

Hey, Paul here in SC.

Property price: $210,000.00

ARV: $290,000.00

Rehab: $40,000.00

Found a property that is held up by the FHA recording timeline. Recently purchased and the owners didn't understand how recording the mortgage affected resale. Here's what I'm thinking:

$10,000 down payment which is credited towards a $210,000 18 month lease option. Do the $40,000 renovation during the lease period and then sell the house and do a double closing.

I would love to hear your feedback and if anyone has done anything similar and what your experience was like.

Thanks everyone!

I would say that whether or not to work towards eliminating your PMI depends on your goals. If your goal is to build your portfolio quickly, I would recommend using your capital as a downpayment on your next property.

What are the appreciation rates in your area? After 5 to 10 years in many markets, your property will have appreciated to the point where you will be able to refinance to remove the PMI. Also keep in mind that your mortgage will be paid down somewhat as well.

Since your are already using the house hack strategy, why not do it again. Buy another multi family home and move to recreate what you have already been successful doing? That would allow you to purchase the property with a relatively small downpayment, use your capital to renovate, and then refinance to knock out PMI and recoup some or all of your capital investment.

I agree that Charleston is an excellent market for STR. North Charleston is still affordable just be selective as the neighborhoods very widely in North Charleston.

An added advantage to the North Charleston STR market is the proximity to the Naval Training base in Goose Creek, SC. The students require the same accommodations as a STR since they move from government quarters to apartments/houses and then ship out after 24 weeks. Since a new group of 250 to 400 move out into town every 8 weeks, utilizing them as tenants during the off season makes STRs stable income properties year around.

Paul Bermingham 

I've decided as I start to expand my real estate portfolio, I currently have one SF rental property, and I intend to focus on low income housing. I will be using 3-5 bedroom SFHs to BRRR with section 8 tenants. My intention is to provide low income families with middle class accommodations in safe neighborhoods with above average school districts.

I grew up in a poor family with the help of government assistance. For us, that meant substandard living in less than desirable areas.

I recently purchased a house in Hanahan, SC as my primary residence due to Berkeley county's section 8 guidelines. I intend to renovate it over the next 6 to 12 months, move, and turn it into a rental.

I have heard of this method being used successfully in high income metropolitan areas. Does anyone have experience using this method in middle class suburban areas? I am also looking for advice for section 8 screening processes and any strategies that have been proven successful with low income rentals.

I'm sure their are plenty of people who think that focusing on section 8 tenants is less than wise and please feel free to share that advice as well. At the end of the day, helping families to improve their lives and the future of their children is just as important as financial freedom... in my eyes.

Paul

Dan,

I am a relatively new investor with one rental property and I have completed one fix and flip within a partnership. 

I am curious about a few aspects of the financing. 

What is the criteria to qualify for 100% financing, what are the fees and points, and what is available for new/relatively new investors?

Paul

Jessica Lucas

@Dylan Murray Exceptioal real estate agent licensed in Virginia, North Carolina, and South Carolina: Jessica Lucas. Search any platform (Facebook, Zillow, Instagram, ect) and you can read her reviews. 

One of the best ways to start out in real estate is to house hack. 

Depending on your life situation, there are many options that could be right for you. Have a family? Duplex, triplex, or quad might be best for you. Single? You could buy a single family home and rent they rooms (roommates) to people you are stationed with. 

Your VA loan is a very powerful tool for building your real estate portfolio. Since you can buy your primary residence with no money down, as long as your property has positive cashflow, you have an excellent cash on cash return.

Keep in mind that you can use your VA loan multiple times, however the funding fee goes up after the first use. If you can avoid 5% down (and you actually pay that money at the closing table), the funding fee doesn't go up.

Tons more we can talk about if you're interested, let me know.