All Forum Posts by: Payton Ball

@Matt Hurley not necessarily no money! Im just trying to avoid tying up too much of my capital on one deal. I'm newer so my cash reserves are far less than someone who has been doing this awhile. I know I could go as low as 5% but I'm not sure if my current property being an FHA house-hack prevents me from receiving these type of loans. I'm good with numbers but non traditional financing options are still something I'm struggling to wrap my head around even after I've jumped into the podcast episodes!

And you’re right about this deal, but trying to get as much information as I can for the next one. Appreciate your help and insight!

@Julio Garcia FHA will be out of the question in the immediate future. Used that for this first purchase.

First time back in a while!

I found a house-hack as my first investment property! It took about 4 months to find the right one but it's been great! It's a SFH where I am making money to live with my other rooms rented out, and will cashflow when I move out which is amazing and setting me up for my next investment. I mention this to give context to my next question.

I'm tied to living in the house for the next 10 months.  I was originally looking for a multifamily for my first house hack, but the market is crazy where they almost always didn't make sense.  A multifamily has just popped up that I'm pretty sure will cashflow, but I'm waiting on some information that I need to be sure.  Regardless, I want to get ahead of the game because if it is a deal, it will go quickly.  Is there anyone who ran into this or something similar as a newer investor where they didn't have the capital to purchase with traditional investment loan?

Thank you!

@Jonathan Greene Thank you Jonathan.

The property is under contract, so it is a mute point, but still interesting to evaluate!

Listing price was 269k.  Rent history was somewhere between 500-600 over the last couple years.  My real estate agent and I decided a good offer would have been around 210k based on the condition and comps rent roll, and anticipated rent after renovation. 

This would be my first rental property that I would look to househack.  I figure the best way to determine would be using the cap method... but I'm not sure

Here's the rundown: Each unit would rent for somewhere between 950-1100 a month (after renovation). Making the NOI about 24k (rough estimate, and correct me if I'm wrong). There are a couple duplexes in the area, and 3BR 2BA newly renovated homes are selling 250-300k. Homes the same size that aren't renovated going for between 160-190k, with a handful in-between. I feel the ARV would be over 300k in this case, but if I use a cap rate of 10%, would put a value at 240k, which would make this deal a no-go.

Any advise would be helpful.  Time is of the essence.  

Thank you!

I've seen so many posts on this, but I want more insight.

I'm a new investor in Charlotte NC (and surrounding areas), and am wondering what you expect the market to do in the coming months.

I know a lot of this will change if there is any additional stimulus, or mortgage relief, etc.  But as of now, what are the general consensus on where the market will go?  I assume that cities more in line with tourism will be hit harder than others, but Charlotte doesn't fall into the tourism category.

At the end of the day I know that cash is king.  Any advise for a new investor coming in right as this pandemic hit?  Thanks!

I'm very green.. but yes, a Mechanical Engineer.

For anyone experienced in buying a home that needs to be moved to a new lot!

It’s a 3 BR 2 BA at 1700 sqft, bought in the middle of a neighborhood where million dollar homes are popping up for 400k.  My assumption was that the owner has the intention to tear it down and build from the ground up. Then he/she must have thought, instead of paying to tear it down, lets see if we can get cash for the property. The home is listed at 60k, and I would be responsible for the moving etc.

Called the agent and he confirmed what I thought. He said that they would either TEAR IT DOWN OR DONATE IT IF IT DIDN'T SELL, which makes me think I could get it even lower if I played my cards right. I found a lot for sale for 35k in an area where the ARV (or in this case the relocation) value is easily 230k.. probably 240k+. This is preliminary... could probably find an even better lot at higher cost with an even higher resale value.

I’m doing math and trying to estimate foundation costs, plumbing, electricity, transporting the actual home, etc. and I’m getting about 120k as a max…. does that seem low? And say I didn’t negotiate the price down on the home at all.. that’s still 50k profit after holding costs in the middle… pretty great return.

 The last piece is lenders, because I’m sure they treat these scenarios differently. Sorry for the long winded message! Was curious on everyones perspective.  Would require a lot more legwork than a flip, but the potential return seems too good to be true?