All Forum Posts by: Pedro Echevarria

@Kyle Lorenzana Congrats on your journey, you will kill it! Rent by the room will be more hands on but the rewards are higher. Good luck!

@Khalid Ellis

Hey Khalid, send me message. Would love to chat about your goals

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Torrington.

Purchase price: $190,000
Cash invested: $7,000

My spouse was able to acquire a 2 unit in Torrington CT. I was able to represent her as a Realtor and have her walk into the house with some equity and no closing cost fees!

PITI = $1300
First unit is paying $900 (a little undermarket)
Second unit occupied
Two car garage rented for $400

Living for free!!!!

What made you interested in investing in this type of deal?

Low downpayment option.

How did you find this deal and how did you negotiate it?

I was able to access my MLS and negotiate sellers credit and inspection to my advantage.

How did you finance this deal?

FHA BABY

How did you add value to the deal?

Finding out the garage can bring in extra income by renting it out to someone else for storage.

What was the outcome?

Live for free and cashflow $1200 (not including vacancies, repairs, cap ex) when move out

Lessons learned? Challenges?

Sometimes you have to be creative when analyzing properties for cashflow. For example, renting out the garage to someone else to have mortgage fully covered.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I'm a realtor!!!

@Jim Adrian

@Jim Adrian@Jim Adrian

@Jim Adrian@Jim Adrian

I don’t have a property in that area, but what gave me a good estimate is using the website “rentometer.com” (free site). Then, I would go on Facebook Marketplace and see what other landlords are charging for there rents. Be sure to take consideration of the location and condition of homes!  That would give you a good idea of the rental  :) 

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Waterbury.

Purchase price: $200,000
Cash invested: $15,000

I was able to use an FHA loan (3.5% downpayment) for this 4 unit. I'm currently occupying one of the floors and renting out the other three.

*My rental income covers more than my mortgage payment while living here.

PITI: $1,700

Monthly Gross Cash Flow: $650 (While living in a unit)

Monthly Gross Cash Flow: $1,650 (When I move out)

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What made you interested in investing in this type of deal?

The goal was to cut my living expense

How did you find this deal and how did you negotiate it?

MLS, a deal that went back on the market. I quickly took advantage and went to see it FAST.

How did you finance this deal?

FHA

What was the outcome?

I'm getting paid to live in a full two bedroom unit while the tenants on the other units are paying down the mortgage!

Lessons learned? Challenges?

Always shop around for lenders. Don't get discouraged if one lender says "NO" to you. Every lender has its own overlays that can effect your situation, but me mindful that there are many many many lenders that will love to help!

To quickly estimate a house rehab cost before checking it out what numbers do I use to calculate it in CONNECTICUT? I understand every market is different but where can I find out this kind of information?

To be conservative I use

50$ sq feet BIG REHAB (full gut, roof.... )

30$ sq feet moderate (upgrades, carpet, paint...)

20$ sq feet LIGHT REHAB (carpet, paint, few upgrades )

Thank you !!!

I know it varies state to state but I'm wondering how much is a HUD consultant? Also, are there any other fees I should know about before getting into the loan? (I will be talking to my lender next week I'm just wondering now)

I'm wondering to add a porch outside my house and renovate the basement. I'm thinking about adding two windows myself. What happens if I go to sell the house and I have done these projects without a permit? What are the consequences?  

@Mary Mitchell thank you