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All Forum Posts by: Zachary Hite

Zachary Hite has started 6 posts and replied 14 times.

Post: Need Suggestions on Home to get a Property

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

Looking at getting a specific property but it has some hiccups to it...

1. The house is a single-wide mobile home 

2. it is a mix of residential and commercial property 

For a single wide home a Chattel home would be normal but the interest rate on those is so high. I have soem ideas on home to pull the money out but what would you guys suggest since lenders won't normally touch this with a conventional mortgage?

Thank you,

-Zachary Hite

Post: First Time Home Buyer, 203k Loan or No?

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

So first time homebuyer, originally I was thinking that my wife and me would purchase a duplex up to a fourplex using a FHA loan. However with the market the way it is any multifamily is far outside the realm of possibility now for a newbie like me as it seems that the established investors are snatching up any deal in sight before I can do anything and there is the whole cash buyer issue too. The duplexes left are ones that would be way to far outside my wife's comfort zone in owning and living in.

So we are looking at switching strategies now. Rent has increased to the point that it would be better to put money into something we get a return on. So on to single family housing (maybe an even more scary option, but at least there is some inventory).

So 2 options..... 

1. Regular FHA, and we buy a ready to move in house (Wife's preferred option) I would then just be hoping and praying that the market doesn't crash and the house improves in value and eventually I can pull money out of it through a refinance to either buy a new house to move into and rent the old one, or buy a new rental.

2. FHA 203K loan, buy a house around the 100 range and dump 50 in repairs. Houses that have been rehabbed this way seem to be going for around the 200 - 250 range depending on location. So I could then in a year or so (if the market holds as is) pull out some money for a new rental property to get the ball rolling. Even if the market drops at least I have a buffer zone so we don't end up underwater.
Second option seems to me to be the better one on paper.

Now for the kicker... I have a couple limiters...

1. We have to be in a new home before the end of the year, there is a personal reason for this but by December we need to be moved.

2. I already have gotten approved for a normal FHA loan, should I call my lender and ask if they do 203k loans? I have read that a lot of lenders don't like these for the increased risk they bring.

3. I (obviously) don't have a contractor lined up. With the market the way it is, is it even possible to get a contractor scheduled as fast as I would need it? Should I find then contact General Contractors in my area that could answer if this would even be possible? I could do a lot of the work myself (raised on a farm teaches you a thing or two) but my understanding is that you have to be licensed to do the work under a 203k so I wouldn't be able to.
 

Post: Help Analysis a Rural Deal with a Twist

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

Work went late for me I will get these posted in the morning. Thanks for helping and sorry for the delay! @Jaysen Medhurst @Aaron Montague

Post: Help Analysis a Rural Deal with a Twist

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

@Jaysen Medhurst @Aaron Montague  Sorry didnt link you right first time

Post: Can you Trade first rent for Cash?

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

@Lynnette E. and @Aaron Montague 

Thanks for those tips, she is a person I trust to do all that is possible to be honest but jsut needs guidance in starting adulthood (heck so do I alot of the time) Thanks a ton!

Post: Help Analysis a Rural Deal with a Twist

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

@Jaysen_Medhurst and @Aaron_Montague 

Thanks so much for those tips didn't ill rerun this tonight after work and talk with an insurance agent today about rates for the area. Also I'll run the property a couple different ways to get a better picture.

Post: Help Analysis a Rural Deal with a Twist

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2
Originally posted by @Jaysen Medhurst:

Can you link to a pdf version of the report, @Zachary Hite? Your link doesn't have a break down of the expenses, which look a bit low to me.

In the mean time, look into using a low-down payment conventional loan, instead of a FHA. Less paperwork, no up-front PMI, and monthly PMI drops when you hit 78-80% LTV.

Jaysen, here is hopefully enough. Thank you for looking this over!

Post: Can you Trade first rent for Cash?

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

So need some advice, I have a sister that has never had a credit card and therefore no credit. She is having to move out of the friend's house that has been letting her live there free and cant find anywhere that will take her without a credit score or any rental history. 

So in the meantime I am looking at a deal that I am short of cash for but want to move on if things all are above board. She seems interested in giving the cash for this to go through but wants it paid back in rent to give her time to get a credit card and build up a score and even rent it afterwards potentially.

So is there any downside, will the lender protest? (Besides the obvious doing business with family issue)


-Zachary Hite

Post: Help Analysis a Rural Deal with a Twist

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

Newbie Investor here hoping to get aid in running the numbers on a potential deal in my area. I live in a more rural area so it isnt easy for me to get comps to get a firm idea of the house worth. (Which has lead to me considering getting an appraisers license to better be able to know my market). 

So the Potential Deal is a Duplex each unit has 3bed/2bath and a garage. 

A big issue is that it is in a smaller town outside of two larger towns by about 3 & 10 miles. In one larger town rent for this type of unit runs about 1300/month. In the other it normally runs about 1600/month. There isn't any rental comps for me to go off of. So I am guessing (key word there) that with the described positioning that I could get about 1250/unit. I do intend on calling the RE Agent though and seeing what they say.

So onto numbers then....

https://www.biggerpockets.com/...

As you can see I am planning on doing an FHA loan and living in one side for awhile (House Hack) that way I can save more of my W2 to do the next deal.

So although it doesn't have a knockout CoC return the real kicker is something I cant put in the report. Included in the sale is the lot next door. So potential for resale or development into another rental.

Your thoughts and if anyone is local to me I would love to converse. I am just really looking into getting a first deal under my belt to commit and not get analysis paralysis   

Post: Newbie Real Estate Investor Meet up

Zachary HitePosted
  • New to Real Estate
  • Osceola, WI
  • Posts 14
  • Votes 2

@Eric Are you planning on holding this virtually cause I’d love to attend your second meeting