All Forum Posts by: Tim McKelvey

@Jacob Rzewnicki Unfortunately, if they are two separate properties, per county records, they would need to be accounted for that way.  I would double check with the county.

Here is a link to a previous article on this topic: https://www.biggerpockets.com/forums/49/topics/238246-can-a-2-duplex-4-units-package-be-financed-with-fha-loan

Best of luck.  Please post what happens!

@Corey Louton wow, this looks like a great deal.  Unless there is something major wrong with the property, this is exceptional.  Congrats! Well done.  Note:  Property managers are a great source of deals.!!

@Bryce McBride You tend to focus on the down-side.  While it is important to assess risks and be prepared for the inevitable problems here and there, the whole purpose of investing in real estate is due to the exceptional upside overall.  

Aside from just learning about real estate, this is also a mindset issue.  If you read or listen to mindset books like "Think and Grow Rich," "Rich Dad Poor Dad," "The One Thing," etc, you understand that you can do anything and get through anything.

That said, you can't be ignorant in your dealings.  You must buy right, add value where you can, screen tenants thoroughly, and hold them to their lease.  If you do these, you are likely to have many more positive experiences than negative ones.  So your entire portfolio will be positive.  

You may have a property here or there with negative returns.  At that point, you need to determine whether it is just a sunk cost that you need to dump, or a place that just started poorly, but can still perform.

If you are one who will turn and run at the first sign of trouble, you may not want to invest--because then you will become the source of a great deal for another investor.

Welcome Clayton!  Congrats on all the accomplishments this past year!  

I have a rental up in Jacksonville, and am moving to NC later this year to continue investing.  Feel free to drop me a note if you have any questions!

Enjoy life!

@Juan Carlos Castillo The broker is not the one who will make the call.  It is the under-writer who will make the determination.  It may or may not be a deal breaker.  Sorry, but employer who need to hire people to get their jobs done, don't always wait around for what the mortgage broker says.  I would ensure I provided the broker with a copy of the formal offer letter so they can see the salary increase.

Did you have a contingency for getting financing approved? If so, and the lender turns you down, you should get your EMD back. If not, then you may just need to find a new lender. You will probably lose any financing related fees you paid up front.

If you do lose some funding, chalk it up as education.  If you plan on any kind of significant financial changes, it may be best to delay house purchases until after the event, or else find a private lender who will let you buy the property all cash, then cash-out refinance.

Good Luck!!

@Brittney K., also, for your situation (not wanting large amounts of debt and wanting to retire early), you can reinvest all profits into each property and pay each property off in a bout 8 years.  Assuming you own 8 properties, you could then cash-out refinance one property per year and live off the proceeds (tax free since it is a loan).  Then, let the tenants pay it off in another 8 years or so.

@Brittney K., as I understand it, yes you can, and it is a good strategy for accumulating properties (assuming you buy them right).  There is a "delayed-financing exemption," that allows you to cash-out refinance a home you purchased with cash.  I think there might be a 6-month window within which you must refinance. Note, I am not a CPA or other financial advisor.  I am thinking of doing the same thing.

@Bradyn Melser, sounds like you need to read "The 4-Hour Work Week."  The first couple chapters are motherhood and apple pie.  But then he gets into specifics on how to automate your business and has keen insights into VAs.  Take look, I think a lot of your questions will be answered.

The book "The One Thing," might also help you truly prioritize the key things you need to do.

Best of luck to you.

@Lawrence Paul, please be careful.  What are your criteria?  Most landlords will not rent to an applicant with less than 3:1 earnings to rent ratio. $1245/mo rent is a lot for an $18hr/hr job.

If your criterion is 3:1, then don't rent it to that person, they do not qualify.  Would you rather miss out on a week or so worth of rent, or have to deal with collecting from/evicting someone who could not pay?

Just my perspective.

@Michael Cross, this looks like a good, solid investment.  Were you able to get some other concessions on the property?  Just wondering because 20% down on $65,000 is $13,000.  How did you get out with only $10,000 invested.  I am new at this, so I'm trying to understand how this works. Thanks for sharing, and good luck to you!