All Forum Posts by: Richard Burke

In regards to the 70% rule, this condo is not in need of repairs/ updates, it is nearly turn-key.

The 270 is right in the middle of the road for my location. Ive seen $200 up to $450+. There is a pool, water and garbage included.

They allow renting after one year. Im fairly confident that I would be able to get rid of the PMI in 12-18 months. - Especially if I get a roomate. In all honesty I could probably put 20% down, but I would rather be safe and have a cushion in my available capital for unforseen events.

Hey all, so i'm seriously considering buying a single condo (2/2) 930 sqft.. EGAD! A condo!

I'm currently looking for an apartment in the meantime, which has really pushed me to consider getting the condo- Here's why.

A) Rent for a 1/1 apartment is $900-1000/month.

B) The condo I am considering is listed for $99,000 and has updated kitchen/baths.

C) The monthly mortgage (PITI + condo association fee) will be 597+ 97(PMI) +270 = 964.

Compare C vs A.

Get a roomate (how much would someone pay for a room/private bath? - again, see A)

So for nearly the same amount of money out of pocket I can buy a condo (FHA 3.5% vs first, last and one month security)

My current salary will allow me to have pay additional payments to the  20% equity fairly quickly (I take home $1700 biweekly) I am also to receive two $5,000 bonuses at my job within the next 11 months. Even if I couldn't or wouldnt get a roomate (my salary can easily cover my expenses) I can still pay down the mortgage and refinance for a lower monthly payment after two years.

Looking at comps, a typical 2/2 starts at $1200/month. The listings I looked at had dated kitchens as well.

Am I crazy or does this sound like a fairly safe and logical deal?

Ive been doing research as well as reading books. The housing market in south florida is pretty tough for my budget (150k)

I was pre-approved for a loan up to for a first time buyer /owner occupied loan. I have 10k that I could put towards my investment.

The few realtors Ive spoken with have basically told me that it'd be extremely tough to find something within my budget of 150k.

Im wondering if i'm being too picky or unrealistic.

What I want:

3bd/2bath single family (or smaller if it has an inlaw suite). It has to be in liveable condition but I don't mind putting new paint on the walls. I want my total monthly payment (PITI) to be around 1200/month. This will allow me to live in the house for a year until I rent it out. This will also allow me to put away money while i'm living there.

so im sitting here slightly discouraged, weighing my options. I could just keep saving for a bigger down payment? 

Im assuming I should just keep looking for a good deal.

Advice?

I am on the ''DO NOT drop out'' school of thought.

I do warn you against getting a 100,000 degree in art ;-)

I got my degree May 2014 and am trying to figure out all of the RE ins and outs before I make the leap. Even when I do, I will be working full time, so I wont be completely dependent on the RE investment.

Anyone have experience renting a spare bedroom/bathroom in their current house?

I was thinking about a single family house 3/2 (or something with in-law suite)

I am early 20's and considering it instead of a duplex/ triplex due to financial reasons.

The area I will be moving to (Florida) has a few colleges so it may be possible to rent to a fellow 20 soemthing for $400-600/month while splitting electric.

Some houses that were under $135,000 caught my eye and given FHA loans, the total monthly payment on a 30 year loan is completely within my reach (even without a rented room).

Pros:

Cheaper overall cost vs duplex (mortgage + taxes +pmi ) = not reliant on tenants (not des

perate)

Much nicer curb appeal than local duplexes = higher appreciation?

Eventually rent to a family = only 1 unit to deal with + higher monthly rent vs duplex

Able to learn home ownership in's and out's (Ive never owned a home)

Able to keep closer eye on tenant (see cons)

ITS AN ACTUAL HOUSE (not some apartment looking duplex)

Able to spot problems tenant may ''forget to mention'' without snooping (illegal btw)

Improvements improv

e my living space too

Cons:

Will share common area with roomate ( I see you're a nudist...didn't mention that on the app)

More specific clientele (college student / recent grad)

Lower income clientele? (student / recent grad)

Broke college student(s) might try to screw me.

Live-in lover(s) (needs to be made clear in app

process)

Lower cash flow vs duplex (lower relative expenses?)

Vacant room = no income at all (when compared to duplex)

Damage = damages my living space too

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Most investors will probably hate this idea of house hacking, but on paper it seems that many cons can be prevented with adequate tenant screening, and at this point in my life I wouldn't hate living with someone (maybe ask me this in 6 months from now :-P )

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House- $130,000

Duplex $238,000

Have you already begun buying properties in such areas? Or are you only advising?

I am in the researching phase of RE right now and certain things seemed easy...almost too easy.

I have come across surprises that weren't evident at the beginning but would have been a cold, unpleasant wake-up call if I'd jumped in head first. I wonder if investing in "Da Hood" may be similar.

Just .02 from the skeptic.

 Maybe ask all the homeowners that went into foreclosure over the last 10 years how it happened to them....

Hey all. I'm considering getting my first (owner occupied) property- a duplex / triplex  or quad, depending on availability. Im looking for advice from others if they've dealt with this situation before.

From research I have done, I've read that lenders (traditional loans for first time homebuyers) may include the possible income from your tenant(s) in calculating what mortgage payment you can afford.

Im afraid It'd be possible to get sucked into buying a larger (more expensive) property that I may not be able to afford if there is increased vacancy / multiple unfortunate events.

This concerns me because if I (single, unmarried guy) can only afford $1300/month on a mortgage, but the bank is insistent that I can afford 2100 / month because  my income + rent can ''easily'' cover the cost.  Sounds great on paper but may not be realistic?

Do you see where i'm going here?

I would be more comfortable with a mortgage I could pay in its entirety without tenants, and having a tenant would just be a nice help on my mortgage (therefore allowing me to put the money I save back towards the property / maintenance).

Am I being overly cautious or am I being a smart investor?

Would like to hear from those who have had similar experiences.

Thanks for any input!

Im a beginner myself but in my honest opinion:

Step 1: Get a full time, reliable job

Step 2: Figure out your credit score, improve your score.

Why a job? 

- Lenders only lend to someone who will pay them (and their interest) back.

- After that $10,000 runs out (down payment?), how will you pay for repairs? how will you pay for your mortgage? what if you can't rent / sell for two, three, four months? The mortgage comes every month.

Why care about your credit score?

- Most (if not all) lenders want to see your credit score. Simply put, higher credit score = more likely to pay lender back 

Hello everyone, my name is Rich. I have no experience in real estate investing but I am here to learn with hopes that I can avoid unnecessary (and COSTLY!) mistakes.

I'm a 24 year old working ''professional''. I will be relocating to Broward county, Florida in the next month (already accepted job offer).

I've joined this community for an opportunity to network with other investors/ landlords and I am always happy to hear advice from those who have been in my place.

Currently I am reading Robert Irwin's book "How to Get Started in Real Estate Investing". I am also doing research online (taken with a grain of salt).

I am not anticipating any home purchases during 2016 (I would like to keep saving for a down payment / keep learning).

I am excited for all of the potential that awaits! 

I am fairly interested in multi-family properties (duplex, triplex etc.) as I could live in one unit, and rent any others. However I have read about the cons of this as well.

*Fine print* I am not asking for a mentor in this post