All Forum Posts by: Rumen Mladenov

Similar situation here (residential, not commercial). Bumping up this thread so hopefully someone will respond...

+1 for house hack. Buy a property with an owner occupant mortgage, live in 1 bedroom and rent out the others. At 20 it is easy, once you get married with kids it is no longer a good option :)

It is not likely that a bank would approve you with no job and no buy and hold experience. Even if you had them, at $30 k the loan would probably be too small for a mortgage lender.

Have you considered using credit cards? With excellent credit you should be getting promotional offers in the mail, like 0% balance transfer/direct deposit for 12-18 months with 2-3% transaction fee. Assuming you have high enough credit limits, this may be a viable strategy - once you get a job, you can apply for a line of credit secured by the property, and pay off the credit cards with it.

If you plan to refinance within 6 months of purchase, check out the delayed financing option. Aimloan.com has it, although I have never used it myself - I was above the 10 financed properties limit by the time they came up with it...

For non-conforming loans, 15 year amortization is standard, and their interest rate is usually only fixed for the first 5 years.

You own your own home... If you have equity, you can take a home equity loan and use the money as a down payment on your next property. That is how I started. Good luck!

@Liz C. for Geico I call the 1-800 number. For State Farm I have a local agent, they drive by and take pictures of the property before starting a policy. 

Some of my policies have $2500 deductible because that is the max the lender would allow. For others I have $5000 or 5%. Even if I had a lower deductible, I would never file a claim for less than $10,000 because the increase in premiums when I lose the claims free discount on all properties would more than offset any money I get from the claim.  

Geico/Stillwater for most of my properties. Their inspections are quite picky and sometimes make ridiculous requests in order to avoid non-renewals, but rates are great. For the ones they refused to insure/renew unless I (fill in the blanks), I go with State Farm.

I have looked for liability only insurance too, haven't found anyone offering it yet. I simply raise my deductible to the max allowed (5% usually), that keeps the premiums lower. 

Hey Devin,

Fellow New Castle County DE investor here. I have been doing the BRRR for a few years now, will be happy to answer any questions you may have.

My goal is to keep it local, none of my rentals is more than 20 minutes ride from where I live. I manage them myself. Buying across the country sounds like a recipe for a disaster, you can check the discussions on Bigger Pockets and you would probably find 10 horror stories for every success story. But I have never done it myself, maybe I am wrong.

I am in Newark/Bear area. Buy and hold investor, looking to expand my portfolio and maybe do a flip if the right deal comes along...

Thanks for organizing the gathering today and for the presentation on preparing one's Financial Resume. I am looking forward to the next one!