All Forum Posts by: Rodrigo Barreiro Pujol

This is great, my job is right in the middle of Round Rock, what are some good areas around there to consider as well?

Hello, I am 26 years old, single, and moving to Austin TX in the next couple of months. I have set a goal to save up at least 25k in 1 year to invest in a house hack, whether that by a duplex triplex or fourplex. My 5-year goal is to own as many multifamily properties as I can, ideally each of them cash flow. I know I can probably house hack my way to 5 properties in 5 years, but I assume I'll probably learn more efficient and aggressive ways to scoop up more properties as I complete my 2nd-3rd house hack, so that I can start picking up more than 1 property per year.

I don't want properties that will take a lot to fix up, I'm fine with cosmetics and do-it-yourself type things. I am looking for feedback on this plan, tips I should know, whether or not 25k cash is a good starting point, and if there is a better way to snowball rather than just househack 1 property per year. 

I have a question. So if I put a 20% down payment and don't have enough to finance the rehab myself, what loans can I get to finance just the rehab portion. Keep in mind, this is for out of state investing so FHA/203k loans won't work in my case.

@Jonathan R McLaughlin Oh no worries, I am purposefully looking for criticism if my idea won't work. So if I went the 20% downpayment route, saving up for additional money for rehab will take a while as well. Would I be able to get a loan for just the rehab costs? And would that be feasible? (I want to invest remotely so house-hacking/FHA route wont work for me).

@Jonathan R McLaughlin so what would be a better route to go than hard money if I still wanted to go no money down? My next option I was going to consider was just save up for that 20% down and find a rehab loan I could do. Downside is, I'd like to get started as soon as I could. But if there is a better way to still start now, what would you recommend?

@Andrew Eherts Thank you so much, you have no idea how much this helped. So it would be a good idea to send out an appraiser before buying the home with a HML so that they can give me a good list of things to get done during renovations to get an optimal ARV? And if the results of the appraisal are not good enough to do the deal, then not move forward with it?

@Andrew Eherts Okay, that is not so bad. Is it possible/hard to actually come out profit where you actually increased the value of the home more than you needed for the 70-80%. Like, the same scenario as above, but the ARV actually ended up being 170k and you actually were able to walk home with 10k profit? What situations would that be possible in and how can I aim for that?

@Andrew Eherts And so how would refinancing out of a 100% financed hard money loan work? I have to profit enough on the rehab that would bring my equity higher than the refinancing bank's required LTV % to get it refinanced? So what would I do if say, I got 100% financed for a 100k property and 30k for rehab (so 130k hard money loan) and that brought the value of the house to 150k. But in order to refinance, they only let me cash out 80% of that 150k? Does that mean I have to come up with an additional 10k (and then some for hard money fees) to cover the 130k hard money loan since they only let me cash out 120k?

Sorry if that was confusing, just trying to figure out how this "no money down" works 

I am looking to get my first property using a BRRRR strategy to profit on my first rental and then grow from there. I want to use a hard money loan with 100% financing and find a good property to rehab and cash out refinance for some profit after I put a tenant in it. Is this a good strategy to start off with? My goal is to use none of my money and start/grow my rental property portfolio (I have little money to fund deals with hence the 100% financing route). Tips? Cautions?

@Polo Vazquez FHA means I have to live in it for at least a year right? Also, what if I wanted to do a BRRRR? Would a be able to get a hard money loan with no/little money down and build my rehab cost into the loan? (Then refinance it out so I have more to work on and keep repeating that?)