All Forum Posts by: Ronald Allen Barney

Two ways to look at a house hack:  from a purely investment perspective, or from a housing cost reduction perspective.

From a purely investment perspective analyze a deal as if you as one of the unit tenants will "virtually pay" yourself the same rent as the other tenants.  Plug that into the numbers that you run to determine the cash on cash return.

From a housing cost reduction perspective, compare the rental income to the cost of the mortgage, taxes, and other expenses to see the net cost of living there.  If it comes out to be a cheaper cost than renting or buying a comparable unit without house hacking it, the deal can still have merit in that way. 

To get FHA it will have to be a primary residence. Once moved into the new home you can get on the deed for the current one, assign it to your LLC, and then rent that one out. You can use FHA multiple times in your life but only one loan at a time can be FHA, so one strategy is to refi out of FHA before moving on and using FHA for each new door. Downside to that is you have to move each time, but if cash is an issue for you starting out, that makes it an easier path into cash flowing assets.

HML as recommended by others here and then for the refi after rehab, see where you land cash wise after paying off the hard money. Assignment to LLC should happen before it rents out to limit your liability as a landlord.

If the 50k will be enough down payment on the next MFH it's a great plan, and if not get what you can get and keep building up cash for the next step up.  Good luck!

 @Tony Gunter says you can't get permits, lol.  "You stop painting that house right now, mister!"

It's weird.  Normally the mortgage lender sends their own appraiser, who has other methods to fall back on when there are no comps.  Is this seller financed?

"Not one and done", where the one cost > $1,000 and got zero leads, do you see where the math is going here? And this is supposed to encourage investors to spend on that scale? Or even encourage me for that matter? Let's see the ROI the KW clients got. Dollars in, leads out. Black out the names if that's better confidentiality, just show me numbers.

I would be interested in seeing a version of DM that actually worked, didn't wear out the wrist hand-writing letters, and had a reasonable ratio of leads per $$ spent, yes.

landwatch dot com

MLS wouldn't give you garbage like that. People complain about a listing agent's commission, but part of it is insurance against such scams in a process with governance, safety, and regulation, a.k.a. the MLS.

Zillow, well...