All Forum Posts by: Ulrich Faircloth

Hi Carl,

Better neighborhoods (like NE and South) mean $180K+ properties. I'll never qualify for that much. My job just doesn't pay enough. And once I quit my job, again, I'll have to wait 2 years. So it's either now or wait for a very long time. 

At this point I don't care about the appreciation. I just want to get STARTED (gotta start somewhere) and build from there. 37% DTI with just the mortgage...which is why I'm trying to find properties much lower than $130K.

The other thing too is that for my business I'm involved in crime prevention. If I get the financing I need I will be getting my car branded...will absolutely have to have a garage, otherwise it will get vandalized. So that's another reason why I want to get a place. My apartment complex only has a parking lot; no garages. Are portable garages any good?

Hi Travis,

Thanks! Yes, I know. I really don't want to have to wait though. If I quit my job and become self-employed full-time I'll have to wait an additional two years due to tax returns for verified income. It's a big dilemma. At the same time though I refuse to just jump into something foolishly. 

He was before but I don't think he's interested now. I could ask. 

Hi David,

The loan I'm utilizing only works for duplexes. I would love a triplex or quad, but in my price range it will be impossible to acquire one. 

I'm aware of 75% of the rental income being used to qualify towards the loan. But if they're not rented...its a no-go either way. I'd have to take another hit on my credit to find another lender anyway, which I don't want to do. Two other lenders I qualified with are for FHA...with the PMI I'd be losing a lot of money.

Yes, I know. For a duplex its going to be cash flow negative anyway. 

Thanks everyone for the response! Glad to be here. 

Hey Nate,

I'm currently working with US Bank and their American Dream Loan. $130K is assuming the other unit is being rented at $1000...but it can fluctuate depending on taxes and other things. So it's really a case-by-case basis. I just know I can't afford anything in S. Minneapolis. Stuck in North...St. Paul is a different ball game. I just don't have any reserves to serve as a cushion in case a tenant can't be found or if something goes wrong. I don't make enough money for that, which is a shame. So that is my dilemma. Even for $99K-$110K properties I'm looking at its problematic. Worried about falling in debt and not being able to pay my bills. 

Hello Everyone! 

I'm Ulrich and I got interested in Bigger Pockets by listening to the podcasts on YouTube. I currently work a full-time job, but am trying to get an investment to transition over to my business (not real estate) full-time. At the same time I am trying to get my first duplex as I am interested in owning multi-family properties. Start young, as they say!

My goal is to start acquiring property now while I have many years ahead of me. I plan to have this be passive income while relying on my business for primary income. 

I have a couple properties I'm interested in, but worried because I have no buffer of cash to rely on in case something falls through or breaks. Neither property (one for sure), to my knowledge, has tenants. With the MN winter coming up in about 2 months...if I buy and I'm unable to rent I'll have to foot the bill for the entire property in question, up until possibly April or May. No one wants to move in the winter after all. 

My godfather owns real estate (an 11 unit property in Edina). His focus is on CASH FLOW. He says that I'm in trouble without it, which I agree. I currently have no reserves...I make 28K a year and the rent for my studio is going up to $565 (about $585 with water/sewage) next month. Currently qualified for up to $130K for a conventional 3% loan and will be relying on down-payment assistance from the City of Minneapolis to pay for downpayment and closing costs. Problem is, I can only qualify for properties in the "bad" part of town. North Minneapolis. 

With an inability to really save (it would take me a year or two just to adequately save on my income. And I'm currently looking at getting an investment so I can quit my job to focus on my business full-time. Problem is, if I do that I'd have to wait an additional two years for tax returns...to verify my "new" income and re-qualify for a mortgage. 

Any advice on what to do in this situation? 

Thanks!!

-Ulrich