All Forum Posts by: Rudy Cecere

@Jay Hinrichs  Just for a reference, this neighborhood is a block away from one of the most desirable neighborhoods in Buffalo (Elmwood Village).  Some of the houses are pretty rough, but it seems like a lot of investors are flipping houses in that area now and a lot of restaurants are opening in that area as well.  I have seen rents in that area double in the past few years and house values are going through the roof.  Yes it is still a little rough still, but I do not mind and I am willing to make that tradeoff for the chance of a large appreciation in value and a growth in the rents.  

Also, from my understanding the 203k would be my best option for what I am looking for. It will be owner occupied and I do not have any experience with renovations. I will help out and add value where I can, but I have been told that FHA has to approve the contractor and the final work in order to issue the loan. Is there any other options for financing that you would recommend in this situation?

@Russell Brazil  That is what I am afraid of, I do not want to be one of those "new investors" or act like I know everything because in reality I am just getting started and do not know much about real estate except for what I have researched.  I guess we will see and I will definitely be consulting a few more realtors just incase.

@Casity Kao Thank you for the response!  And I think you are correct, I feel like this agent is definitely great at what they do, but may not be the right fit.  They definitely made me feel great about buying and it was a great experience. I don't feel the meeting was analytical enough for me, and I think a newer agent may be able to get more creative with my financing and property search.  I think I will try a few more meetings with this agent because I do think maybe things will get better , but if it came to it what would be the best way to move forward with another agent without burning a bridge?

So while researching I have heard that the best agents are ones that have investment properties.  I followed this advice and just had a meeting with an agent that I know that has 20 units and owns a bed and breakfast.  During our first meeting moments ago I expressed my game plan: I am for looking for a multifamily in the 100K range and would like to rehab up to 150k.  I would like to be in up and coming area and am looking for a good deal (possibly something that has been on the market for a while so I could submit a lowball offer).  I told him my absolute max is 200k and really only wanted to go there if there was a screaming deal.  

During this meeting it seemed like every time I talked about the two up and coming areas I am interested in he brought up negative stories about those areas, and he seemed to always loop back to this property that is selling for $199,999 but still needed some work. Also when talking about financing I said I wanted an FHA 203k but said they're a huge pain in the *** and I should go conventional if I can. He was also talking about how fast some of the houses on the market are selling and how he overbid on new listing for another client by more than 10%! From my experience of checking the MLS multiple times a day it seems like houses aren't moving as fast as they were a year or two ago and many listings have actually dropped their prices more than once.

Long story short, I would love some feedback on whether this is valuable advice and I am just being naive?  Or, is this agent just better suited for regular buyers and not necessarily investors?  Thank you in advance for any answers, and just so everyone knows this agent is a wonderful person and I would like to work with them, but at the end of the day I am buying this house for an investment.

@Denny R. that is what I am thinking as well.. Getting qualified for my first mortgage and analyzing my first property are proving to be the most difficult tasks.  Any money lost on contracting on a first deal can be considered a learning expense because you can definitely avoid them in the future.  Always inspirational to see someone complete the task you are working toward though.  So cheers to you and best of luck on your next deal!

@Ali Boone Thank you for those articles, you have a great perspective on this issue and really opened my eyes.  Thank you for sending those links!

@Caleb Heimsoth I already have!  Was very surprised to meet someone from my area so fast.  @BiggerPockets .com really is amazing!

@John W. Thanks for the tips, I was thinking of as much of the work myself or with the help of friends and family as I could for those exact reasons, but as a novice am worried about some more complicated tasks like tearing down walls and getting permits. Mainly I am concerned about the 60 day move in period for a FHA loan which would be a tough deadline to hit on a first time major remodel. Does anyone have experience with this problem?

@Caleb Heimsoth wow!  You are very active on the forums and in the market for our age; congrats on closing your third deal that's amazing.  I tried to get started about three years ago while in school, but could not get a loan due to income and credit.  I am okay with the long recoup time as well because I am more focused on maximizing cashflow.   

How much rehab did you have to do for your first two deals?  Was that 32k investment for your downpayment or were those your rehab costs?

@Denny R. congrats!  I am looking to do my first deal soon in Buffalo, NY and was wondering if you had any tips on how to better estimate the rehab costs upfront going forward!  Also, would you recommend a rehab like this for someone on their first deal or start with more or less rehab and work your way up?