All Forum Posts by: Samuel Bavido

I was recently looking at a listing for 35k that claimed the property was assessed at 75k. Now, I have no idea if those numbers are anywhere near correct, or where they came from, but it got me thinking; if the property was indeed worth 75k, then a 70% loan ratio should allow you to pull about 17k out of the property right away for rehabs. But I've never heard anyone discuss this strategy, which makes me think I'm probably missing something. If I were to find a deal for 50 cents on the dollar, what is to prevent me from borrowing 70 cents on the dollar, walking away with an additional 20 cents? 

Thanks so much for the input, folks. My brother's unit is based at Fort Braggs (he's currently deployed, but probably coming back in October.) So the whole idea here is to house hack, which precludes buying in other parts of North Carolina. Given that, what advice would you have for him? Or there particular types of properties, or particular areas, that you would recommend above others? 

@Anthony Angotti C+ or B property that can be moved into soon. Some updating/work required is probably ok, but not a huge fixer-upper; she's just starting a new job and can't focus a ton of time on the property. 

My brother is considering house hacking in Fayetteville, so I was looking causally through realtor.com, and the market looks very odd to me. There are a ton of multifamily properties for sale, and most of them at very low prices. I know that prices vary by market, but a lot of these properties would be above 1% even at the list price. I'm wondering if anyone with experience in that market might be able to shed some light on what's going on there. Is there a reason that prices are low? Have they dropped recently, or been that way for a while? Are there any expenses related to holding properties there that an outsider wouldn't think of? 

Thanks!

Hey folks, I'm posting on behalf of my sister, who just recently graduated with her degree in Electrical Engineering. She's got a job in Tulsa, a regular (and decent) paycheck and excellent credit. She has about 20k in student loans, with no other debts. She's interested in house hacking, and would really like to look at some 3- and 4-plexes, but it seems like there is a real dearth of those in the Tulsa area at the moment. 

Does anyone have any tips  (or leads even!) for multi-family homes in Tulsa? What agents would you recommend who would be willing to work with a first-time investor using a house hacking strategy? 

Is cashflow your primary concern, or are you thinking of buying and holding? Long-term, 3 properties cashflowing $100 each is riskier, but will bring you higher returns. You have only lost $50/month in cashflow, but have gained three times the mortgage payoff (building equity at 3x the rate) and you have 3x the depreciation benefits. 

As @Sean Walton pointed out, you want to be careful to not over-leverage yourself. On the flip side of that coin is the fact that interest rates are really low right now. 

Final thought; you're making 70k, and expect to be at 100k within a few years. If you can maintain your lifestyle at 70k, you should be able to save for a down payment pretty quick. In the markets I'm familiar with, 18-25k is enough to get a decent SFR. You could potentially buy a new property every year...as your cashflow increases, you can accelerate that as well.

@Michael Noto, how did you eventually get that LOC?

Since the idea is to use it to BRRRR, would it make a difference to talk about using the LOC to flip?

I recently listened to one of the BP Podcasts in which the guest talked about using a business line of credit to BRRRR properties. I'm really interested in doing this. I'd like to hear your thoughts on how to go about putting myself in position to do this. I don't have to do it tomorrow; if it takes me a couple years to build up to that point, it's ok; I'm not in a huge rush. Below is my financial situation. What steps should I take put myself in a position the banks would like?

I have a SFR that is cashflowing about $200/month. It's worth roughly 95k, and I have 35k of equity in it. For the past two years (since I bought it) I have been putting any cashflow into the mortgage, hoping to get it paid off within the next couple years. I do not have this property in an LLC; it's currently the only thing of value my wife and I own, so it didn't seem worthwhile. My wife and I both have excellent credit (730+). We currently rent, but will be purchasing a home later this year for 100k with 10k down. That property will eventually be a rental as well. Moving to that new house will also mean leaving my wife's job and my job. I have a solid set of marketable skills, and feel confident I can bring in 40k/annually; I might be able to bring in as much as 60k. 50k seems a reasonable expectation for me. I hope to be in a permanent job by August or September. 

What would you do if you were me? 

Hello @Cameron Godsill, and welcome to BP! I'm a rather new member as well. I'm currently in Taiwan, but will be relocating to Stevens Point, WI this summer. Perhaps we'll run into each other at a REI meeting some day!

Why is real estate declining in this area? Make sure you have a solid understanding of this before you commit to anything. Perhaps they're near the bottom of a down swing and this a great time to buy. Perhaps the mill just closed down and there is nothing to keep people on that part of the map, which means you're looking at buying part of a ghost town. 

If you don't know the answer to this question you are far more likely to lose money than make it.