All Forum Posts by: Ash Hegde

For homes that are on the market, I would get your own agent for representation. The seller is paying for it anyway, and their agent will be looking out for their interests, not yours. @Ray Hage would be a great agent to help with this. 

Welcome Alec, check out the meetups section under "build your team" at the top of the page. I think that's your best bet for networking and connecting with folks in your area.  

Thanks for the shout @Ray Hage

@Johnnie Schneider 25k is going to be tight for a down payment and closing costs down here, but Ray is pretty good at finding hidden gems. 

A house hack does not necessarily need to mean roommates, you can get a multifamily property with an FHA loan with 3.5% down and live in one unit while renting the other(s).

If you decide on a single family that you can live in and rent later, consider conventional rather than FHA, you can go as low as 5% or maybe even 3% down. You can then save your FHA loan for a house hack later without having to refinance.

I don't know your current financial and living situation, but it would benefit you to save up some more cash if you can. 

If you are interested in wholesaling, that can be a good way to learn about finding good deals while raising investment capital.

That just means it wasn't the right deal for you, best of luck on the next one!

Agree with Scott, that seems high for just closing costs. Does that include your down payment? 

How much do you need for rehab? Darnell mentioned the option of an FHA 203k loan, which may work in your circumstance. These loans can be a bit tedious with paperwork for large rehabs, but if they are small and cosmetic it shouldn't be too bad.

For tax purposes, a single member LLC is disregarded, so there are no tax advantages by using that type of entity vs running a business under your own name without an LLC. It is more for asset protection as Chris mentioned.

@Haley Parker I would not count your new living expense when evaluating the cash flow of your rental. That is something to consider for your personal finances (and it looks like a great decision with those numbers), but the property should be evaluated on its own for cash flow purposes. 

Ambitious and risky goal. To triple your money in a year, you are likely looking at flipping. Wholesaling can get you there as well. Buy and hold rentals are great but they are a much longer term game. 

Great question and it's certainly a problem people are running into. A lender may have an offer for up to 80% loan to value, but when the numbers are calculated, it doesn't cash flow so it doesn't qualify. In many markets you will only be able to pull out 75% or even 70% in order to cash flow, sometimes even less. 

If you stay in the game long term, you are likely going to refinance many times to get tax-free cash out of your properties. When interest rates are higher, you are using cash flow more for defense than offense. You want to get through these tough times, and over time your rents will go up and the property will appreciate, and at some point rates will likely come down and you'll have plenty of equity to cash out at a better rate. 

If you think about it the opposite way, rather than needing you to put 20% down, they will lend you up to 80% of the value. So if you buy for 100k and do repairs for 50k, but the value becomes 200k, they will lend you up to 80% of the 200k, or 160k. Since you only put in 150k for purchase and rehab, you can pay off your loans and have some left over. Hopefully that makes more sense.