All Forum Posts by: Victor Chalouh

Hi AJ 

I appreciate your response and your well wishes. 

I did speak to a few mortgage brokers out there and they told me that I would be able to work with smaller numbers in that realm of 70-80K ARV and be able to pull out 40-50K in equity. I forgot to mention but I am only buying these properties on an LLC, I don't need anyone suing and coming after personal assets because of a 50K house lol. Getting commercial financing at such cheap prices is trickier though you are right, not many lenders are doing it.

So the rule with my friend is no partners, and honestly I don't blame him. When you begin to scale up in a big way I feel like it can get a bit tricky as to where to place your money when you refi and it can get sticky if both of your goals don't align. Therefore since he isn't into partnership and honestly neither am I, we both agreed to just help each other out, but otherwise we are on our own. 

I am aware of the HUD program but I was just curious if they are tougher and more of a pain in the rear end to deal with than regular tenants.

I am also very hesitant with a regular tenant because if he cannot afford a 50K house then what makes you think he will be able to pay you 7-800 a month consistently? I don't want to deal with evictions and loss of income, lawyer fees etc. It can become a nightmare super quick In my opinion. So I was just curious if anyone has dealt with any HUD tenants..

I appreciate your help AJ :) 

Hi BP Community

I am from NYC and I am looking to get into investing in Charleston, WV. The reason I chose this area is because the taxes and insurance seem pretty low, and also because a friend of mine who owns a lot of property all over the country is getting into long term buy and hold rentals there, and did advise that we can bounce off of each other there and share strategies/contacts etc. 

I am really interested in the BRRRR method, and I am typically looking at houses in the 20-30K range to start. I don't want to pour in a ton of money into this just yet as it is my very first investment property. I do own my home in Brooklyn and I did do gut renovations at first, so I somewhat know what to lookout for when it comes to a fixer upper. There were also houses in Charleston for under 5K but those are beyond destroyed and they make me a bit uneasy, not going to lie. I think cosmetically it shouldn't cost more than 15-25K and all in I will be in for about 50K. Comps in the area for a nice decent house are between 80-100K
 

I just want to know if anyone has any experience in forcing equity in these types of low end properties. My end goal is to refi and pull my money out, maybe even plus some if possible, and have HUD tenants pay off my mortgage. and then do it again and again and again.

I think at first I need to make good contacts with Local handy men and have them go on calls for me until I have enough doors to hire a management company.  

I did a ton of research and it seems like Charleston is a decent area for what you are paying, but can anyone give me any first hand experience from there? I am sick of reading all of these damn google articles.  

I am also seeing a lot of posts on local rentals saying NO HUD. why would that be? I would also appreciate feedback from anyone who has prior experience dealing with HUD tenants.

Thank you all very much for reading 

Hey guys

I was reading Brandon Turners book on investing in real estate with no and low money down.

He was discussing the idea of private lenders and an idea struck me. If I get a private lender to lend me the full amount for the house (figuring the seller would cover all of my closing costs and attorney fees), would I be able to get an appraisal on the house even though I have no mortgage? The idea would be to refinance on the house 12 months after and return the money plus some interest to the private lender. I would want to make sure that the house appraises for that much before just purchasing the property.

Let me know your thoughts!

Thanks

Vic

@Nicole Heasley ahhh!!! Okay this makes sense.

I also came to the conclusion that this is like a business. The more you invest in it (initial down payment) the more you should expect out of it.

Kudos to you that you were able to do that!!

I’m 26 and looking to get my first investment property.

@John Warren thank you John!!!

@Corby Goade thank you for your input!!! Much appreciated

@Whitney Hutten thank you Whitney l! I am looking to purchase an investment property. Ideally I’d like to put down 10%.

I know the cash flow would change significantly if I put down 20% but I also want to leave some money for reserves.

So what I'm just confused about is that it's obvious the more money you put down, the cheaper you're expenses are (mortgage and Interest, PMI if applicable). With that being the case, How do you tell a good deal from a bad one?

Hi guys

So I was reading a few forums and newbies just like me were asking if a property’s rent roll would cash flow positively based off of the mortgage price they’ll have to pay (the mortgage price with everything included, taxes, insurance etc).

My question is this - obviously the higher the down payment, the lower your mortgage.

If I were to rent a single family home and take out a loan with 10% down then the numbers probably wouldn’t make sense, whereas if I were to put down 20% then the numbers would change and the property would be cash flowing positively every month.

The person in the forum I was reading about was taking an FHA loan and put down 3.5% on a property but everyone kept telling him that his expenses vs rent roll are almost equal and that it isn't a good investment.

But if you think about it, he only put down 3.5% which basically means that after the mortgage is paid off the house will be his for almost no money out of pocket initially vs what it’s worth.

Can someone pls help me make sense of all this?