All Forum Posts by: Valerie King

I have already been preapproved for a great loan (great interest rate and a grant that covers the minimum down payment). However, the closing costs are considerably high for the loan amount. I'm a multi family buyer and this would be my first property investment.

Looking for additional lenders in southeast Michigan/metro Detroit who offer a loan with the above characteristics, but reasonable closing costs. I want as little money in the deal as possible.

If you are a lender and think you can help, please let me know and I'd be happy to carry on the discussion through private message. 

Hi @Bryan O.,

Awesome to know! Thanks for sharing your experience. You make a good point I didn't consider. Glad to hear that it worked and is still working for you. Hope restored :)

Hi @Chad Baird,

Thanks so much for the advice!

Valerie

Am I doomed in finding a good deal if I'm going through a big bank and being financed through Fannie/Freddie/FHA? From the little I've learned so far, it sounds like, generally, getting a good deal requires cash, which either requires the investor themselves to have cash or for the investor to have a private/hard money lender. Furthermore, the investor needs to be offering up a super speedy closing process. (All about beating competition)

I'm planning to invest for the first time in a duplex, triplex or four-plex that I'll house hack for at least two years. A key benefit to a Fannie/Freddie/FHA loan program is the low money down and much lower interest rate. I'm, no doubt, going with one of those programs for financing. But is all hope lost in finding an off-the-market deal since I won't have cash and time on my side? (I've heard the big banks and these loan programs can take quite some time to close with compared to private lenders) Am I limited to on-the-market options that most often involve worse deals with this kind of financing?

Thank you @Account Closed  I'm with you on doing things the right way and investing in that up front to avoid potentially losing a lot more or even everything down the line over trying to save a few hundred bucks. 

@Brian Faulkner and @Patsy Waldron, thank you for the answers!

And great important point Brian; I totally spaced out on remembering that FHA loans come with serious property inspections that likely wouldn't approve a place in need of BRRRR improvements. Would a 203K loan likely make more sense here?

Patsy, thanks for listing the resources. I'll be sure to check them out. Happy there's a useful book on rehab costs, and even happier to be reminded there are people (contractors, real estate agents, experienced investors) who I could turn to for help, even if it comes at a bit of a cost. As for my last question, I knew I was missing something obvious with regard to the refi thing. Thanks for helping me get it!

Enjoy the rest of your Sunday!

After watching this week's BRRRR webinar, I'd like to get practice utilizing the BRRRR calculator with property for sale in my area. Here are my questions:

-How do you estimate what the rehab costs will be? How on earth is someone like me with no experience fixing anything supposed to know that?

-How do you estimate what the house will be worth once the rehab is finished? I have no idea how to calculate what repairs/updates are actually worth to buyers.

-Is figuring out what amount to charge for rent as simple as going on craigslist and the like to see what landlords are charging for similar spaces in your area?

-Dumb question, but if I use an FHA loan and live in the duplex as opposed to using a private lender, do I still need to refinance for the BRRRR strategy to work? Aside from paying off a short-term private loan that's likely high on interest, what is the point in refinancing?

Thanks in advance,

Valerie

@Brandon Schlichter Thank you!

@David Sohn Very helpful overview. It definitely helps. Thanks! 

@Levi T. Thanks for taking the time to search for that information. I'm thinking that might be a good start for a basic outline/sense of what can be included, but to tie a bow on it by consulting with an attorney and possibly making tweaks that meet my personal needs and desires as a landlord without breaking the law.