All Forum Posts by: Trent Vogelgesang

Great to meet all of you on Saturday, if anyone wants to connect, needs some free labor or has any questions relating to structural engineering please feel free to shoot me a message. Look forward to the next meeting

@John Kent Good advice, I'll try my luck with some local banks in my area and see if I can get that seasoning term reduced. Thanks

To add to this, I recently spoke with a mortgage representative at Wells who stated in Florida the cooling off period for a refinance was 12 months. Otherwise you could only refinance for the original purchase price which negates what is typically spoken of on the BP podcasts. I've heard on multiple podcasts of taking a hard money loan on a 5 month term and then refinancing with a bank for the ARV value in order to pay off the initial loan. Is there a way around this cooling off period, i.e. using local banks, or is this a Fannie Mae law?

@Jd Martin Good advice. Well noted for the any future properties I analyze. I am leaning toward slimming down to a smaller place in a more desirable area so that the rental market will always be there and the smaller property will be more affordable. Possible AirBNB down the line but would have to figure that out when the time comes. 

Chris, thank you for your input. While I can afford the entirety of the monthly holding costs myself it is not ideal and I really do see your point. I am coming from a college town where renting a room and having roommates is the norm and now transitioning into an area where that is not always the case. I can see the upside of a duplex to provide both myself and the tenant privacy, obtain more sustainable tenants and at the same time use the income to pay towards the monthly holding costs.

Bigger Pockets Community, I've been listening to the BP podcasts for quite a while now, doing my own research and due diligence and have finally come up with a potential "deal". As a recent college graduate, my goal from this deal is to purchase a 3/2 or 4/2.5, live in the master and have roommates to help ease the monthly holding costs to try to live close to rent free. Now comes to the first piece of the puzzle to find a deal in which i can (1) afford to do so and (2) will provide the sufficient rent. I found a foreclosure through the MLS current listed at 245k and i researched the comps through my realtor and am confident the ARV is 285k. My rehab budget on the 2007, 4/2.5, townhome would be 15k for interior only(floors, appliances, TLC) as the exterior is covered by the HOA. I estimated my monthly holding costs at $1950 per month (mortgage payment, taxes, HOA, insurance). The comparable rent for this renovated home is $2150 (comps via MLS) which leaves only a small gap between the monthly holding costs. This gap would be to cover any additional vacancies(10%) leaving me on the hook for any additional interior repairs to the home but essentially all my holding costs would be covered. Would it make sense to purchase this home for myself to live and essentially pay rent to myself ($600-$1000/mo) and rent out the remaining bedrooms (2 or 3 x 600/mo) and use this to pay off the mortgage on the house? Or wait for a better deal that has a larger gap between the monthly holding costs and the rent in order to make some profit? Any advice would really be appreciated, thank you in advance.