All Forum Posts by: Sara Eastler

@Rohit Vij, I have to agree that there are far better deals to be found in the MLS in Houston. Also, if it's true that your place needs only new carpet and interior paint, your make ready estimates are too high. Have you tried using the calculator for a Home Depot carpet install? They remove the old carpet, install the new one, and the price includes the carpet of your choice. Naturally, for a rental you would choose something cost effective and replaceable. Best of luck to you my friend. Sara

Hi @Reginald Dearmon It's a pleasure to "meet you".

I'm also in the Houston area and I think your strategy is a sound one. Many investors get their start this way. The cool thing is, financing is easy to obtain as an owner -occupant and you can do this 2-3 times, as long as you really are living in the home for the first year.

To get you started I'd highly recommend the book: Investing in Real Estate by Gary Eldred. He devotes a whole chapter to getting started as a REI through owner-occupant lending and investing.

If you have the stomach for it, you can invest in a property that's a duplex or a house that needs rehabbing and is at least 10% under market value. OR, you can get some really good turn key deals from foreclosures right now - move in for one year, then rent it out and repeat the following year. Whatever you choose, I'm sure it will be right for you and your family and in developing a passive income stream. 

Cheers!

Sara

Hi Nate,

If the restrictions of the 203k loan don't work for you, there's always the hard money loan option. These really aren't bad if you're able to refinance within a few months to a trad loan with a stable interest rate and a 30-year mortgage.

Best, Sara

Hi Matthew,

I'm a novice RE investor with experience as a passive investor and having flipped one house. I've learned that if you are purchasing a MF deal that contains 5+ units, the lenders care much more about the cash flow of the property than they do about the credit and background of the purchaser. Having said that, the RE investors I know who purchased their first MF units, often had to bring in an experienced MF investor as a partner on their first deal. I also know two couples (with established credit histories) who purchased 8-units as their very first deal and had no trouble securing lending from the bank.

What I've learned is to keep an open mind, never believe all doors are closed to you and if someone turns you down ask, "What would you have to see to say yes?" so you know exactly what to work on and where to put your energy. You could also ask, "Would you say yes if my dad cosigned?" "Would say yes if I partnered with a successful RE investor?" etc.

Good luck moving forward!

Sara