All Forum Posts by: Kevin Bryce

hey thanks @Tiffany S. after so much research it feels good to finally be in the game!

Hi everyone,

After lots of time searching and making offers I have finally purchased my first house ever and it's a light (hopefully) rehab project. 

I was able to use the VA loan to purchase with 0% down and already have great equity. I have been working on some projects myself but now the hunt is on for a good general contractor.

So if anyone has any recommendations in the Hampton roads area I am all ears. Also found a great broker to hang my license with so the next deal should come much easier. 

I plan to post some updates as I flip this first one. Stay tuned!

Thank you all for the advice,

Duplexes (or any multifamily) are extremely rare for the area as well, which might have to do with the high price tag.  I think my best strategy is to do as @Steve Smithsuggested and make an offer on something, which will have to be wayyyyy under list price to make the numbers work for me.  Essentially creating the gem of a deal @Robert G. mentioned. Someone will have to say yes eventually right?

Good evening everyone,

I'm about to take the state licensing exam and starting to look at my first real estate purchase.  The problem is, none of the estimating tools used on this site are making me feel comfortable about any properties that don't need a full rehab.

My plan is to purchase a duplex and live in one/remodel while renting the other.

Rents for my area are around $700-$1000 for a 2 bedroom 1 bath.  The low end of duplexes I've found is around $200,000.

So the 2% rule,  at the safe end of the spectrum, the 2% rule says I shouldn't pay more than $70,000...way off.

Then we get to the 50% rule.  with half of the duplex's total rents, $700 going to expenses , that leaves $700 for the mortgage and the profit.  A 30yr mortgage with 20% down at about 4% is $851 a month...again, not good.

So aside from visiting properties and praying maintenance cost is half what I'm estimating, what should I do?  Paying more down payment isn't an option.  Am I left with trying to find an area with more reasonable, I definitely don't want to do that.

Thanks for your advice in advance!

-Kevin

hmmmm potential FHA loan disqualifiers. That makes a lot of sense. I am wondering if a realtor would have a list of homes that already did not qualify That would help narrow down the search.

So in while contemplating recent real estate strategies I was left asking myself, what things does an appraiser overestimate the cost of repair?  My thought is that is where there is money to be made right?

If an appraiser thinks old dirty cabinets reduce a particular house's value by $1,000 but I know I can put in new cabinets for $500.  That $500 will essentially become profit if the same appraiser comes back and appraises the house again.

But these appraisers know the market.  Much better than I do.  So what I am wondering is how can I find the things that reduce the value of a house the most but are the least expensive to correct.  Or maybe the better question is what things will drive away other potential buyers (after all, home SALES are what comps are based on) that might not be such large expenses to correct?

Hi there,

I have spent the last month and a half reading a lot of books and blogs trying to absorb as much as I can before I enter the world of real estate.  I already love it.  I haven't had a single discussion with a realtor.  I have never talked to a lender.  But I am already so interested how real estate can change the way people live.

So I'd like to introduce myself as I am sure over the next...who knows how long, I will be asking a lot of questions. My name is Kevin. I live in Norfolk VA and currently serve as an Officer in the Navy. I have a Bachelor's degree from the University of Florida. I am a below average surfer and a Taylor Swift fan.

So now for real estate. I have very little experience, but I do have a plan. And I'd love to know what you guys think. So, here it is, I am currently out to sea, have been for the past 5 months. But we are expected to return soon. I am currently renting an apartment, and have never owned a home. We actually signed the lease a few weeks before I became interested in real estate investing, which is unfortunate. But when we return I will begin searching for my first purchase, probably using the VA loan.

Will I break the lease on my rental to move into my first investment property?  Maybe...Assuming that I find the right deal I will have to discuss with my landlord and figure out if paying penalties will hurt negate the future cash flow from rent.  My plan is to purchase small multi-family, in a middle income area of my town.  I would like as many units as possible (4), but might only have enough funds to purchase a middle-income style duplex.  I would then live out of one unit and rent the other until we move, and then rent both.  Once we move (most likely in a year) I should have enough saved for a down payment and another multi-family property in a new area. 

While I am looking for the first house I am thinking about trying my hand at wholesaling.  It does sounds a little too good to be true to be honest though, which makes me a bit nervous.  My caution resides with the fact that there are so many doing the same thing with almost nothing to set them apart.

I plan on saving everything made on wholesaling and through positive cash flow to use as down payment for more multi-family properties.  I am not sure how this plan will change or how quickly I will need to add more to it, but this is what I've got for now.

Please let me know what you think, I've spent a little while thinking of the best way to get where I want to be while managing what is essentially a full time job.  I would love to get some feedback!

Thanks and nice to meet you!

Kevin