All Forum Posts by: Rodney Clark

Hi @Emma Hustis, I am curious what you ended up doing? I am looking to do the same and just wanted to see what your process is overall. do you inform the seller you are an agent, and do you do it locally or virtually?

0 Votes

Coeur d'Alene, Idaho

Quote from @Travis Timmons:

Live in flip - buy a livable dump of a property in as good of a location as you can find/afford and slowly fix it up room by room. You're going to be living in a job site for a year or two, and by the time you've built the house you love, you'll sell it. That part sucks. It's also a tough sell to the wife. What doesn't suck is selling for a tax free gain after you have lived in it for 2 years. Or you can refinance and hold it if you love it as a rental.

Also, I'm 41, married with two kids and just bought another live in flip/BRRRR. We move in mid June and it's gonna suck for a while. I'm not telling you to do anything that I have not done and will not continue to do. It's worth the hassle.

Thanks for the response! Pursuing a value add opportunity where we can renovate and potentially add beds or baths would be great to force appreciation. If we can do this with a duplex and handle the Reno during living in it would be ideal. I am certainly a fan of this model, yet not sure how my wife will handle the job site. Taking it slowly would be more feasible for her, so that might be the approach!

0 Votes

Spokane, Washington

Quote from @Marina Sorbie:

It really depends on your personal goals. If I were in your position, I would keep things as simple as possible and focus on building equity to save money for my next property. You could consider house hacking if you're comfortable with roommates. If not, going with a single-family home or a duplex could be a good option.

For larger investments, you'll need at least six months of reserves to cover any unexpected issues. Having $30k-40k can be tight when you consider the down payment, closing costs, and other expenses, unless you qualify for a VA loan.

Remember that if you don't qualify for a VA loan, most properties with assumable loans will require you to be VA-approved, as sellers don't want to lose their entitlement. However, in rare cases, a motivated seller might make exceptions.

You are correct that assuming a loan means you'll need enough cash to cover the difference to qualify. If possible, seller financing could be ideal. If not, consider conventional or FHA loans based on your income and debt ratio.

Good luck with your purchase!

I think my wife would most certainly agree keeping things as simple as possible. I think what would best suit our risk tolerance is handling a mortgage where we didn't necessarily need to rent out anything, yet have the ability to rent to reduce our cost of living. Thanks for the clarification on assuming VA loans!

1 Vote

Spokane, Washington

Quote from @Kenny Banuelos:

Good job Rodney!
1) It is hard to say which strategy or financing to choose but I believe the first step should be getting pre approved and seeing what you can afford and start narrowing down your options maybe you can't afford large multifamily or don't have the capital for a rehab on a BRRRR so something like a single family or small multi family would make more sense.
2) Figure out what strategy you are comfortable with, you mentioned you had a wife for example, maybe house hacking a duplex (living on in unit and renting out the other) will be more comfortable than house hacking the basement of a single family.
3) As for financing, get pre approved see what you can afford and maybe you only have enough for FHA 3.5% down and closing cost, I don't know the Spokane Washington market. I would talk to different lenders and maybe you can convince the seller to do seller financing that would be great! Also get sellers credit to not have to pay as much closing cost!
4) What I would do with 40k if I was in your shoes is i would get pre approved analyze the potential deals on small multifamily specifically a side by side duplex. Calculate cash flow I would hypothetically receive from STR MTR LTR I would put down the 3.5 FHA. I would house hack subsidize my mortgage which gives time to build up capital and would refinance to conventional loan and start my next investment! I really think this strategy can work for anyone and can really help launch you off into the direction you want to go with real estate wether that be cash out refinance, HELOC, another FHA, conventional, BRRRR, large multi family , single family, arbitrage , STR, MTR, LTR etc..

Warning I am not an experienced investor! This is just my personal opinion and how I would deploy your capital in RE.

Thanks for the detailed response! Of course there are many different variables and personal preferences definitely play a major part. I think the most ideal is to pursue duplex where we can have a decent yet manageable mortgage to cover if vacant, and be able to analyze best rental strategy where we may be able to rinse and repeat.

1 Vote

Spokane, Washington

Quote from @Kristine Ann:

I think you about covered it all.

BRRR and 3-5 unit multifamily are too intense for a newby, in my opinion. Some of these other options you listed are decisions based on how you want to live and how you feel about having strangers in your primary house and aren't something we can tell you to do. They also depend on what loans you qualify for and what homes are available in your area.

Whatever you do, as a first time homebuyer, make sure you buy a house you can afford and that your monthly payment is as low and affordable as possible.

Thank you for the response! That's the key thing to us, is to take on as much debt as possible, yet to ensure we can cover the whole mortgage and other expenses if completely vacant.

2 Votes

Spokane, Washington

Hello Everyone! So I am a new investor, although I know a fair amount of different investing strategies.

My wife and I are about to purchase our first property and have roughly $30-40k.

My current plan or strategy:

1. Duplex, live in 1 side, rent other side out via STR, MTR, or LTR

2. Single Family with ability to rent out attic or basement via STR, MTR, or LTR

3. BRRRR Method

4. House Hack

5. Larger multifamily, 3-5+ units rent out via STR, MTR, or LTR

6. If doing multifamily, would be utilizing Property manager to ensure legal basis is covered.

7. Putting it all on black and living in a van down by the river either way.

Financing:

1. Either FHA with 3.5% down

2. USDA Loan depending on location, ideally 0% down

3. DSCR Loan

4. Potential Seller financing with very little down

5. Assuming FHA or VA loan at lower rate , although I need to cover current equity in home?

The questions I have:

1. What strategy mentioned would be the most advantageous and yield best ROI for a new investor? Thoughts are large MF, although worried about vacancies, repairs, etc.

2. Is there a better way to deploy such capital and yield better ROI in RE? Thoughts are to partner with experienced investor who may be able to yield better ROI, although need to safeguard as much as possible for potential risks.

3. What the heck would you more experienced investors do with this capital?

Any tips, tricks or suggestions to point me in the right direction?

Thanks for any and all information provided!

2 Votes

Spokane, Washington

@Madeline Malinovsky

Oh that's definitely some good information, I didn't know about the 75% rule regarding rental income. Who would you recommend for speak to at Sammamish Mortgage? Do they serve all of Washington or do brokers prefer more local?

0 Votes

@Tom O.

The 5th door would be nice, though I agree, it would depend on the down payment. I do like the idea of potentially selling a duplex if needed. Both properties are in urban areas so I guess the FHA would make the most sense. We have been a USBank customer for some time, though I'll look into CU for sure! I appreciate all your help!

0 Votes

Hello everyone. I have stumbled upon a 5 unit multifamily apartment complex as well as 2 duplexes on the same lot , both located in Washington State and have some questions regarding loan types and other general information.

From my understanding,

a 4plex or smaller:

the lender will consider my income and not the income produced from the other units,

lenders would reduce down payment if owner occupied for 1year

5 unit+:

lender would consider both my income as well as income produced from property,

Generally 20% or larger down payment required.

considered commercial property

The issue lies in the fact that the lender isn't going to like our income, therefore I believe the 5 unit would be more obtainable. My wife and I would be first time home buyers and want to start as soon as possible.

So the questions I have been trying to answer are:

Do I have a correct understanding of the differences between 4plex or 5+ multifamily?

How difficult is the eviction process in Washington State?

What loan types might be available to us considering owner occupied commercial Re and first time home buyers? - It seems Fannie does Multifamily, and then there's the Dus Program. then since 5 unit is considered commercial, I'm not exactly getting good results

What are some good mortgage companies that might offer what I'm looking for in Washington State?

I appreciate any and all information!

1 Vote

All Forum Posts by: Rodney Clark

Rodney Clark has started 2 posts and replied 9 times.

Post: Best Brokerage for Wholesaling Real Estate Agent?

Post: Best way to Deploy $30-40k Capital

Post: Best way to Deploy $30-40k Capital

Post: Best way to Deploy $30-40k Capital

Post: Best way to Deploy $30-40k Capital

Post: Best way to Deploy $30-40k Capital

Post: 4-plex or 5 Unit multifamily apartment general questions

Post: 4-plex or 5 Unit multifamily apartment general questions

Post: 4-plex or 5 Unit multifamily apartment general questions