All Forum Posts by: Account Closed

For my second deal I'm currently looking at creative options like you mentioned. I've got some serious leads for Owner financing which will be a game changer in my scalability. I highly recommend calling around and at least seeing if they're open to the terms. You're going to get 100 no's but that one yes makes up for it. Currently trying to do a Owner financed deal in my city Wilmington. House cost $32,000. Willing to put $3,500 down with a 3 year balloon payment and 30 year amortization. and it probably needs ~$5,000 grand in work, minor stuff. House would cost $200 monthly and would rent for $1050 all fixed up. Worst case is $850. You should really just call agents in your area cause this has been life changing so far. 

Just do a cash out refinance on the house and use the money to fund your investments. Give your dad a 10% interest payment and it's a win-win. Also It probably won't be 10 houses out the gate. that cash flow for 400. Unless you're okay with investing in poor areas which I do but a lot of people aren't comfortable with. 

Not an agent or anything but I can see a couple things contributing to why the house isn't selling.

From a design POV the house looks outdated. The houses that have sold next door, and several around the corner we're all modern on the inside. Now granted those houses we're smaller but looking into the mind of a buyer they're probably thinking they would need to update the carpets/flooring and maybe the paint/trim as soon as they own the property. Make's it a little harder to sell. Good thing is this is easily fixable. The most cost effective thing I would do would be to get a staging company in to set up their own furniture. I know that you have your furniture in there but I think a modern look will help the vision of potential buyers. I'd simply paint that trim and try to a more modern look, currently it sticks out while looking at the pictures. Getting new carpet is also an inexpensive option and could help sell the property. 

The second part of the equation is the house itself. It seems to be the most expensive. That's fine but when you combine that with the fact that it's outdated it might scare some potential buyers away. 

I wouldn't fault your step-son too much with not selling the house right away I can see where he's coming from. Most likely buyer's agents are telling them it's not worth that price and to under bid, like the example you gave above. It might require some combination of a lower price and a small upgrade but you should be able to sell the house. Good luck!!

Get another opinion, that's not adding up. 

Beautiful house and perfect strategy/area. I try to tell my friends all the time this is the route they should take. How do you think you want to structure your next deal? Another house hack, flip?

I primarily invest in lower end homes as well and the main problem with them is even though they cash flow greatly, your exit strategies are compromised because you can't refi out of them do to the appraised value being so low. I learned that the hard way on my first property. It's not the end of the world but it hampers your ability to scale. You won't be able to pull money out of that house right away.

If I was in your shoes I would do that deal If there we're no other options out there for better appreciation. But if you get this house it's not really *bad* on paper by any means. @troy young seems to have insider information however. 

Just to clarify that's not your ONLY option, it's just the easiest. There are other options but they're expensive. 

If your plan is to house hack then saving up the down payment for an FHA loan is your only option considering the funds have to come from your account. I'd say find the price range you would be comfortable buying at then making that down payment your target. Looking for something in the 100K range? Then you should try to save ~$6,000. Looking for 200K? Then try to double that amount.

Again that's just for that strategy. If you're realy looking with no money then you have to get a little creative with the terms of the deal you're looking for. I'm currently working on one now that I'll be posting soon. But if you're just looking to house hack I would start with that.

Hey Steve I agree with James. What kind of renovation were you thinking of doing? Or were you planning on keeping the current bathroom in place?

Quick question, what are you wearing? Lol