All Forum Posts by: Shai Flax

@Colleen F. Thanks for you answer!

@Shannon Strickland

thanks for your answer.

unfortunately 3 people won't be enough cash flow for us to convert from LTR to MTR...

I'll try to find an RE lawyer, Thanks!

@Colleen F. thanks for your answer.

I unfortunately realize that rent by the room is not a thing for a group home but thought it would be a creative solution to my limit for not enough people...

Thanks!

Hey y'all,

After doing long-term renting, we are looking to get into mid-term by doing rent by the room.

I've heard that there is a limit for unrelated people living in one house, which can be as low as 3 people (which is very low and doesn't make sense ROI-wise).

We thought that the solution could be us being licensed for a group home which by that will give us way more wiggle room.

Does anybody here do that? Know if this process will solve that problem. I couldn't figure it out when I was researching about that topic.

Thanks in advance!

Hello Kelly,

That is awesome,e that you are eager to start!

we were all in your shoes once!

Like somebody else mentioned here- how about starting with a house hack? Buy a house, live in it, and rent the rest of the bedrooms to other people who will pay your mortgage and taxes.

You can also find someone to JV with- they will bring the money, you'll do the rest:)

The first deal is always the scariest- getting easier as you go.

Feel free to PM me if you have any questions.

Disclaimer- I'm a Realtor and an investor in the DFW area

@Andrea Campo

I think your analysis is pretty conservative.

Taxes can range from ~700-2000ish, depending on the area.

I take 8% for maintenance, only if all of my CapEx and other things in the property are new/in good condition.

CapEx- I think around 150-200$ a month is make sense, again, only if everything is new or in a good condition.

Insurance- that's accurate from the rates I see lately. 

@Jenelle Abrams that makes sense.

If you are a health care provider you can maybe take that as an advantage and maybe start a senior home or something. That suppose to be a great income that will help you get a great cash flow to buy more passive investments. Just a thought...

Hi @Jenelle Abrams, that's great that you are reaching out for help.

I think a wise thing will be to understand where you want to get and then reverse engineer that and decide how you are going to do that.

If dealing with tenants is not your cup of tea (which is understandable), it doesn't mean that you can't buy a rental property, it's just mean that you probably should hire a property manager... But, if you know that you want to invest by not dealing with people it's a different thing. 

So, start with the end in mind.

I'm sure there are books on note investing or any other investing method out there, sorry that I don't have a better recommendation for that.

Good luck!

Hi @Carmel T., I'm exactly in your situation.

I'll tell you what I've learned:

You can def build your credit score outside of the US (feel free to reach out if you need an explanation on how to do that). It took me about 8 months to get a good credit score.

Until this point, I couldn't find any conventional bank (not the big ones, not community ones, and not credit unions) that will give me a loan without a W2 (which is impossible for you since you are not working in the US). However, I didn't talk to alllllll lenders out there so there might be someone who will, I'm in the process of look into it. 

The way it's helping me is to use private lenders that my terms (LTV, interest rate) will be better than for foreigners and that can make a huge difference.

If you have family in the US they might agree to co-sign you and then a whole world will open up for you:)

Feel free to reach out. Good luck!

Hi @Craig Castro, that is a very courageous thing of you to do and that is admirable! 

You can def find someone who has a mentorship program but I want to offer you a different point of view- what about asking for someone from the market you are planning to invest in to help you with that? You can either pay them, make them an equity partner and some people would love to help you for free to give back.

This is my plan- when I'll do my first flip (I'm a buy&hold investor now) I'm going to search for a person who's done lots of flips and get him/her to help me by splitting the profit or any other way.

Feel free to reach out and I can try and help however I can, I'll just say that I did only 5 purchases until now so I wouldn't say I'm a very seasoned investor...

Good luck!