All Forum Posts by: Trey Williams

Thanks @Jason Diclemente , yes the best way to know every aspect is to speak with her  and explain the advantages of not foreclosing. Also true a new mortgage would spread the loan over another 30 years making it cash flow better then the current loan. Thanks for the input 

I have been contemplating this also. I don't see why not, you own the company and will be renting to yourself but I could be wrong. You could also live in a unit and take it as a loss on your taxes possibly. 

My neighbor want to let her home foreclose ( info found out through neighborhood conversation) but I think it can rent and cover the mortgage. This not knowing her mortgage but Im guessing its $1,400 and the home can rent for $1,700 - $1,800. The home needs minor repairs like holes in the walls and there is a sections that is not finshed but can be done for a few thousand, just drywall . Would this be a good situation for taking over the payment and renting out to save her from foreclosure and saving her credit and gaining a great rental in the process? I have not approached her about this yet but just want some ideas of how I could make this work for the both of us.

Finally got this unit rented and went through sections 8 after many potential tenant request that fell through. It took the usual 1.5 months to rent and weird enough the young lady who called first out of the 30 - 40 call/ emails is out tenant. She called first and said she was in the process of signing up for sections 8 but it would take weeks to get approved. Her tenacity and me wanting the unit rented worked out in the long run. The unit is rented for $1,080. $20 less then what I would have like but i learned you can rent your unit section 8 for more then you would to normal renters. This is a gray area but I am happy because housing is paying 100% of the rent and a large portion of the utilities which are all  the tenants responsibility. This deal was not easy but I finished a small rehab and went through the cities section 8 program which I see as very lucrative. Next up we would like to refinance in the future and are currently looking for a value add  small multifamily we can rehab rent and refinance to pay our investors and gain a free property. 

@Jason W. I got my Licences a few months ago and will just tell you what I would have done knowing what I know now.

1. keep your day job so you can qualify for loans if not your will need a partner with lots of cash I did I was lucky . Yes be a part time realtor/investor.

2. Find a multifamily property to purchase the larger the better because more renters means more cash covering your mortgage. If its your first property  you can obtain a 203k loan( this will finance the purchase and construction loan)

3. Find a multifamily that needs renovations so you get it at a discount and can rehab below the actual ARV and later refinance

4. Oh yeah join a team or a realtor that already invest in rentals so you have a built in mentor. They will help you write your first contracts but you will split your commission. But getting paid to purchase your rental is a nice situation ( I did this on my first rental and looking for a multifamily currently) 

5. If you can rehab your multifamily below the ARV you can refinance out of the loan and possibly get some cash. Also asap ( 6 moths typically) the refi will allow you to do this process in a year again because you cannot have more then one 203k loan or FHA first time buyer loan out at once. But you actually don't have to be a first time buyer you just can't have two of these loans at one time.

6. Read Bigger Pockets " The book on managing Rental Properties" so you can manage your multifamily and save 10% instead of hiring a property manager. Its tough but worth it.  

This is just what I have learned and I probably am missing a few things but this is what I can think of at the moment off the top of my head. 

Speechless. This shows it take guts and determination. Super proud to see that first multifamily deal. This motivated me to aim higher for the multifamily flip or multifamily BRRR congrats and best of luck even though you dont need it. 👊

@Laszlo S.

Excuse me for the slow response. Taxes and insurance are already included in the original numbers. We are self managing. The rehab took care of all minor repairs needed. Were aquiring a home owners warranty ($40-$50)to cover the cap x items  minus roof this wasn't in the originals because we were going to replace the HVAC but now it miraculously works. If we have replaced it there be no need for the warranty because it would have been only covering the water heater which is only a $400 item plus labor. Yes risky but the roof is in good shape and you don't always need a new roof just patching will do unless we have a 100 year Storm that destroys a significant portion.  Also I doubt we'll keep it 10 years. I hope this helps you with your own numbers. Thank you

Thanks @Tyronne yes REOs and not easy by any means.  Great quote. Thank You for the congrats and we'll have to catch up some day soon

Sorry for the slow response but the half duplex was bought at this price and cash flows because the duplex was built in 2000 So it's not a run down old property but it cash flows because I used the MLS to run rental comps for the past 180 days within the city and our properties rent is priced actually conservatively it could be at 1,100 but i dont want to be the ceiling for this type of property in this market.

@Pavan Patel

You will get a different strategy from each answer. I would say buy a multi family . I don't know what  what a $60k DP at a cost of $250k will get you in your market but possibly a 4 unit maybe more which will always cash flow good if you analyze it correctly. This is my strategy with my partner on our next deal. If you  can find a multi family at a discount including repairs you can refinance and regain some of your cash you spent on the deal.Thanks thats my simple two cent. Good luck