All Forum Posts by: Tyler Goulden

Well it took a year and a half worth of credit repair but I finally got my foot in the door and my first property is officially under contract.  Only a duplex and I was hoping for a 4plex but they're incredibly hard to find in my area right now.  Ran the numbers and if I did everything correctly it'll cash flow $596.31 a month after I move out in a year.  Hoping inspection and appraisal goes well and I can move in mid June.  Then its time to learn how to flip so I can stack some paper and get in the commercial world.

@Account Closed thanks so I plugged my numbers in right then? I guess I will just have to make sure my LTV is accurate than.

Just looked at my first two properties today. Both 3plexes. One will need 50Kish worth of work and the other significantly less but still enough work so it won't qualify for an FHA loan. If I make an offer I want to make sure I run my numbers right.

For a 203K loan, using the rental calculator I would simply add up the price I would pay for the property, and the price of the rehab and use that as the 'purchase price' and leave 'estimated repairs' blank correct?  Because the price of the property and the rehab would be wrapped together under the same loan so neither would be out of pocket.  I believe that would make the 3.5% down accurate too because it would come out of the property price AND rehab work all under the same loan.  Is this correct?

EXAMPLE 203K rental property analysis:

150K property needs 50K worth of work

'purchase price' = 200k

'estimated repairs' = 0

down payment = 7k (3.5% of the full 200k...not 150k)

loan amount = 193K

@Troy Gandee Thanks a ton, I will have to talk to a few more brokers and see what I can come up with.  Really appreciate the insight!

-Tyler

@Troy Gandee thanks a ton that was very helpful. So no matter what after I house hack I will have to pay 15-25? What if I do a 5% conventional, and then move out? Would I then be able to get another 5% down and house hack? Or could I at least FHA, refinance to a standard loan, and then redo another FHA for 3.5?

@Michael Totman So was I right in saying the banks view it more as a business loan?  If the property is a good property showing nice income the loan shouldn't be too difficult to get at the right price?

So what would you all recommend as a cheap aggressive method to generating more leads? I know I personally have several auto alerts with brokers through the MLS and at least in my area that is a very slow process....not many 3's and 4's comes up very often never mind for a good price.

What is the local rent looking like in that area to begin with?  

I have no experience yet but I have been doing quite a bit of reading on it.  I would grab a few books specific to financing commercial real estate, I would network like crazy for investors.  From my understanding banks view commercial properties as a business loan more than a mortgage so if you can come up with the down payment....the property itself is more important than the cash.

Is this for a BRRRR or just to buy fix and rent?