Purchase price: $185,000 Cash invested: $35,000 Sale price: $671,000This was our 3rd home.

I have helped many new investors purchase their first property in Memphis and LIT.

On a Fix and Flip Loan, Max LTC is 90%, 100%Rehab, 90% Property Purchase on Value. 

The purchase contract makes the buyer legally responsible for the loan. 

I want to purchase my second property within 4-6 months of moving into my multifamily house hack, but looking for a guidance on the strategy to do so.

Step 1: Get preapproved for an FHA loan for the purchase price you are looking for.Step 2: Connect with builders until you find a few that will finance the construction of your home. 

Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

The only two ways to rectify this are (1) purchase the property far below market price or (2) significantly increase the property net income usually through some method of “repositioning”. 

If you are looking at a 300 unit apartment complex with a $100mm purchase price, then typically you want large, diverse economic, growing cities.If you are buying an Airbnb, well this is a marketing game. 

If it is a emotional support dog (basically a pet with papers they buy online, mostly to find a way to get a pet into a rental), ask for documentation from a local medical professional (NOT anything online).