All Forum Posts by: Sahil Relan

Hi All,

I am about to purchase a 2-unit property in Chicago for 100k. It is an REO so I am not getting good responses from the seller. Here is my concern:

The property is already rented. 

a. The seller says one of the unit is occupied by tenants who get CHA assistance for 75% of the rent. 

b. The second unit is cash MTM tenant. I am worried that the second tenant might not be paying etc and I dont want to deal with eviction since it will be my first RE investment.

What do you suggest from your experience that I should do?

I am still in the 5-day period for the contract. What can I ask from the seller like receipts for rent paid etc?

Hi All,

I am about to buy my first property(2-unit) for 100k in Chicago. 

a. The interest rate quote I got from my lender was 4.875%. Sounds a bit high considering Fed interest rates at so lows.

b. The lender wants me to cover 5k in closing out of pocket. He isnt agreeing to bake the cost into loan amount. Is it normal?

Appreciate responses as always

@Jason S Martinez check on meetup.com

@Lore Postman : The property is 30 mins from where I live. Goal is to get my feet wet with RE and I will plan to hold the property for the foreseeable future(5-10 year) since the ROI of the property is favourable.

@Lore Postman thanks for the detailed answer! I have good credit and have 20% down. I am buying a REO so not sure seller-financing is applicable. Surely, an attractive option.

Thanks a lot all!

Hi,

I am looking to buy a 2-unit property for 100k, some tenants are already living and paying there. It is a REO. The property needs minor repairs which I plan to do with the cash-flow generated. I have these two questions:

a. Do I need to do a hard-money loan to BRRR? With this property I can get a regular loan.

b. Should I get interest-only loan or regular loan? The way I see it, even if I BRRR I will have more equity in the house.

Really appreciate your inputs. Sorry for the noob questions, my first property!

@Lynnette E. 

Thanks for answering. Here is the situation about the house hack deal. My current rent is about 1700 for 1br, with the house hack it will be reduced to 1k plus I will be moving to a 3br unit. I see myself living in it for next 3-5 years at least. Does it still make sense to house hack considering I am not really cash flow positive but will play less in rent?

@Aaron K. same city but second one is in a C neighborhood. I wont live in the second one, that would be like an investment property. I will stay keep renting meanwhile.

@Aaron K. I have arrangement with private lenders and the down payment cash. The thing is I have cash enough for only one deal. Both will require similar down payments..