All Forum Posts by: Stu Wann

Keep it up, Jason! I couldn’t agree more with Jim regarding the real estate profession. Though it was a different situation, I had zero living expenses when I started my career and it allowed me to really go at it hard and take some risks. I’d recommend considering doing the same. If your goal is to build a career in real estate sales, you’ll need to get out of your parents home eventually - because your youth is not going to be an asset as you’re interacting with clients - and it won’t help if you’re still living at home :-). The more credibility you can build, the better. So, if and when you’re in a position to house hack, do it! Make sure you’re ready for the down months as far as expenses go. If you can swing it in the up months and the down months, then you’re golden. Good luck!

The angle I was thinking is that you purchase it from them for $80k with a loan at that value. Then you’ve got all the equity in the home. Down the road you can either refinance to the market value or get a HELOC to use for future purchases. At $80k your cash flow on the property is spectacular. At $220k it’s almost nonexistent. May be worth simply purchasing at $80k and not considering the equity until you come up with a better idea in the future for your investing goals.

Are you purchasing it from your parents with financing? If so, an FHA won’t work for your loan because FHA has to be owner-occupied. Do you have money for the down payment? If not- having your parents finance and hold the note sounds like a great idea. It feels like you’re missing a step based on your description. You have to own the home before you refinance it. If you’re purchasing with financing, you’d have to find out from your lender if they’ll finance you initially at the $220k valuation - typically your initial loan amount is based on the purchase price not the market value. I doubt you’ll be able to take cash out initially without refinancing. With 80% LTV are you cash flowing with $1800 rent? You want to make sure those numbers make sense, too! Good luck! Sounds like a great opportunity.

Hi BP! We're in the process of a 1031 exchange from an SFR in Denver and hoping to tie down duplexes in Mobile, AL. But we need property management in Mobile, anyone have any recommendations?

Also, we've targeted Mobile because my wife's family all live there and it's a relatively comfortable place for us to invest OOS - so we'll likely be looking for more deals in the Mobile market in the future - would love to connect with any other Mobile REI's, wholesalers, or Realtors who are interested in connecting for future business!