All Forum Posts by: Tanner Lewis

How are you getting a $240k ARV? The as-is value per the appraiser is $150k, and since it is habitable now, I am not sure how you can value add $90k with just a lipstick reno. It depends on the comps in the market, but I think the actual ARV will be much lower.

Depending on your income, I would focus on growing your sales business and then dumping all of your income into real estate. Wholesaling is just adding another time-for-money trade to your already busy schedule. (I am young and in sales myself)

I am not a conventional lender, but I am looking for a similar deal at the moment. Conventional/FHA used back-end DTI to qualify you, and I think the max back-end DTI is 42% (at least with the lender I talked with). You could use a little of the rental income to qualify that, but that would only be for separate units. I would reach out to a conventional lender to understand what you can qualify for, and then start looking for deals with that criteria

[Not a CPA] The property taxes will be settled at the purchase and sale of the property. They will be prorated on the HUD, but you may have to make a payment in between, depending on how the county bills them. Regarding profit from the flip, I am pretty sure it passes through your LLC and you report it on your taxes as earned income.

You can still add value and then refinance a property, which is similar to the BRRRR method. However, only do this if the property is below market quality and you are bringing it up to market quality. Since you bought this for $5k less than the appraised value, I don't think there would be a big enough jump in adding value where you can do a cash-out refinance, and you would likely be bringing money to the table to pay off the HELOC with a standard refinance.

I would contact a hard money/DSCR lender to see what options are available for you. I know a lot of hard money lenders stay out of Detroit but will do DSCR there. Once you determine what lender you want to work with, find your realtor and refine your buy box based on what will be eligible for your lender. Next step is find the deal and then buy it.

What do you mean by "you don't want to engage in interest"? I think that means you are opposed to taking on debt for your first deal. Can you please clarify?

Hey Arvin - cabins can be hard to qualify. Most lenders will say no upfront, but some can do cabins if they meet certain requirements. Essentially if they are a regular house but they have a log cabin "feel" they will be ok as long as you prescreen it with your lender upfront. 

Hey Magda - I am also in the Austin market and looking for a house hack. It is honestly pretty hard to cash flow here, so I would look at deals where you would negatively cash flow less than what you pay on rent. In my opinion, STR in Austin does not work great, but LTR is even harder to cash flow. I see a lot of people MTRing here and being pretty successful, I suggest looking at that.

Hey Soren, if you plan on wholesaling in South Dakota, I would find a lender that is able to do that state. Most hard money/DSCR lenders don't lend in South Dakota, so I can foresee a low closure rate on deals since financing will be difficult to get. If you chat with them and figure out what deals are generally eligible for them, then you can target your buy box. Once you get a deal and an investor, you can refer the deal to the lender knowing that they will be able to fund the deal.