So what's holding you back?
Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes
So what's holding you back?
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yI doubt you'll see thousands of responses. The majority of people are blaming high prices, high interest rates, low inventory, and lots of competition. Those are all true. It's not a great market right now and I expect it will get worse before it gets better.
David Greene compares it to swimming against the current. You can sit on the shoreline and wait for the current to change in your favor or you can keep swimming against the current. Those that continue to swim against the current may not make much progress, and they may even go backwards, but they will continue improving their technique and getting stronger. When the currents eventually shift, the people sitting on the shore will be late to notice the shift and they'll take time to get back into a rythm. Meanwhile, those that stayed in the water will take off like rockets and blow away the competition.
The DIY Landlord Book4.7248 Reviews
115 Replies
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Jeremy Garges:
IBLOC is insurance backed line of credit.
This is on a new construction with 1 year builder warranty. Longer term goal would be family use/retirement home so it's not all about immediate cash flow.
Maybe I'm doing the math wrong, but with purchase price at 330k, 20% down would put mortgage at 265k.
3500 / year taxes
1200 / year insurance
I did just research the JAX REIA, however, I live in PA so it would be difficult to make the meetings in person. I'm going to look into this some more, thanks for your advice !
Yeah it's different if you are going to use it as well.
Some REIA have multiple in-person and zoom meetings every month. That REIA might also have a facebook group, etc. - Member since 2020 · 9 posts · 4 votes3y
I’m looking at my first property atm after a personally rough 2022. FYI, I live in Richmond, Virginia.
The hard news: I was laid off multiple times that year so I don’t qualify for renovation loans. More so I had to move back in with my family which is a major shot to personal morale.
The good news: I’ve recouped my cash savings to $20k in a few months! I’ve got a few lenders lined up and am working with an agent.
My situation is a bit odd, and I’m trying to figure out the best way to go about it…advice is definitely welcome!Currently, I'm staying with family in Richmond, VA as a 30M (layoffs hurt!) so needless to say, I'm trying to exit asap!
However, I want to buy a house and not get tied into renting. My budget is $250k although I’d like to stay closer to $200k.
I’m looking for homes where I can live with a roommate to offset living costs, and would meet the 1% rule when I move out to my next home.Unfortunately, I’m having a very hard time with this. Most homes I find are in the .7%-.75% rent to purchase price.
So here are my choices as I see them (again, please offer any advice).
A. Buy a home on the cheaper side that negatively cash flows just so I can move out and collect equity on something using a conventional loan. Then, after a year, I can qualify for a renovation loan for another house, fix that up, and have a positive cash-flowing property. Pro: I have a home and flexibility. Con: I’m not making money on it.
B. Stick it out and hope things get better while stashing more cash away. Pro: Rapidly increase savings. Con: Risk being a 31M living with his family.C. Rent and hope things get better. Pro: I’m out of my family’s house. Con: I’m losing money and have less flexibility to leave my rental contract.
I personally am leaning towards A. It’s not perfect, but I’m fairly certain I can get my living expenses around $1k living with a roommate and I can bust *** to regain savings to buy a pure rental property.
In addition, we are seeing a huge influx of people from DC, NYC, LA, and Austin. I lived in Raleigh NC a few years ago and saw home prices skyrocket. I don’t want to miss that train here in Richmond.
Thoughts?
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Alixander Laffredo-Dietrich:
I’m looking at my first property atm after a personally rough 2022. FYI, I live in Richmond, Virginia.
The hard news: I was laid off multiple times that year so I don’t qualify for renovation loans. More so I had to move back in with my family which is a major shot to personal morale.
The good news: I’ve recouped my cash savings to $20k in a few months! I’ve got a few lenders lined up and am working with an agent.
My situation is a bit odd, and I’m trying to figure out the best way to go about it…advice is definitely welcome!Currently, I'm staying with family in Richmond, VA as a 30M (layoffs hurt!) so needless to say, I'm trying to exit asap!
However, I want to buy a house and not get tied into renting. My budget is $250k although I’d like to stay closer to $200k.
I’m looking for homes where I can live with a roommate to offset living costs, and would meet the 1% rule when I move out to my next home.Unfortunately, I’m having a very hard time with this. Most homes I find are in the .7%-.75% rent to purchase price.
So here are my choices as I see them (again, please offer any advice).
A. Buy a home on the cheaper side that negatively cash flows just so I can move out and collect equity on something using a conventional loan. Then, after a year, I can qualify for a renovation loan for another house, fix that up, and have a positive cash-flowing property. Pro: I have a home and flexibility. Con: I’m not making money on it.
B. Stick it out and hope things get better while stashing more cash away. Pro: Rapidly increase savings. Con: Risk being a 31M living with his family.C. Rent and hope things get better. Pro: I’m out of my family’s house. Con: I’m losing money and have less flexibility to leave my rental contract.
I personally am leaning towards A. It’s not perfect, but I’m fairly certain I can get my living expenses around $1k living with a roommate and I can bust *** to regain savings to buy a pure rental property.
In addition, we are seeing a huge influx of people from DC, NYC, LA, and Austin. I lived in Raleigh NC a few years ago and saw home prices skyrocket. I don’t want to miss that train here in Richmond.
Thoughts?
I'll go with a modified A strategy. Is there a way to find a 3 bed or even a 2 bed with a decent firecode approvable basement? Then you can generate income from 2 friends instead of one. I would hate for you to be losing money but you do need a place to live anyway.
Are you paying your family rent now? If you are then make sure that you are figuring that it.
Is there a way to find a partner with more Cash than you and you do the sweat equity and the work?Is there a way to buy with seller financing.
- Member since 2020 · 9 posts · 4 votes3y
Quote from @Frank Patalano:
Quote from @Alixander Laffredo-Dietrich:
I’m looking at my first property atm after a personally rough 2022. FYI, I live in Richmond, Virginia.
The hard news: I was laid off multiple times that year so I don’t qualify for renovation loans. More so I had to move back in with my family which is a major shot to personal morale.
The good news: I’ve recouped my cash savings to $20k in a few months! I’ve got a few lenders lined up and am working with an agent.
My situation is a bit odd, and I’m trying to figure out the best way to go about it…advice is definitely welcome!Currently, I'm staying with family in Richmond, VA as a 30M (layoffs hurt!) so needless to say, I'm trying to exit asap!
However, I want to buy a house and not get tied into renting. My budget is $250k although I’d like to stay closer to $200k.
I’m looking for homes where I can live with a roommate to offset living costs, and would meet the 1% rule when I move out to my next home.Unfortunately, I’m having a very hard time with this. Most homes I find are in the .7%-.75% rent to purchase price.
So here are my choices as I see them (again, please offer any advice).
A. Buy a home on the cheaper side that negatively cash flows just so I can move out and collect equity on something using a conventional loan. Then, after a year, I can qualify for a renovation loan for another house, fix that up, and have a positive cash-flowing property. Pro: I have a home and flexibility. Con: I’m not making money on it.
B. Stick it out and hope things get better while stashing more cash away. Pro: Rapidly increase savings. Con: Risk being a 31M living with his family.C. Rent and hope things get better. Pro: I’m out of my family’s house. Con: I’m losing money and have less flexibility to leave my rental contract.
I personally am leaning towards A. It’s not perfect, but I’m fairly certain I can get my living expenses around $1k living with a roommate and I can bust *** to regain savings to buy a pure rental property.
In addition, we are seeing a huge influx of people from DC, NYC, LA, and Austin. I lived in Raleigh NC a few years ago and saw home prices skyrocket. I don’t want to miss that train here in Richmond.
Thoughts?
I'll go with a modified A strategy. Is there a way to find a 3 bed or even a 2 bed with a decent firecode approvable basement? Then you can generate income from 2 friends instead of one. I would hate for you to be losing money but you do need a place to live anyway.
Are you paying your family rent now? If you are then make sure that you are figuring that it.
Is there a way to find a partner with more Cash than you and you do the sweat equity and the work?Is there a way to buy with seller financing.
You know, now that you mention it, I think I can find a 3bd1bth around the city and meet that. I can rent it by room.
BUT, you've given me another idea with the basement. RVA doesn't have a lot of basements per se but the homes I've seen have a tall crawl space. High enough to comfortably sit in but not stand in. I'm thinking, what if I get some carpets for the cheap, put fluff on the ceiling and wall, a dehumidifier, and boom got a practice space I can rent by the hour. I'm connected with musicians around here. I'm thinking I get a 200k house, I'm probably paying $1600 with everything included (PMI, tax, etc.)I’ll have to see how much those spaces rent for but just thinking creative ways to use a non-bedroom.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Alixander Laffredo-Dietrich:
Quote from @Frank Patalano:
Quote from @Alixander Laffredo-Dietrich:
I’m looking at my first property atm after a personally rough 2022. FYI, I live in Richmond, Virginia.
The hard news: I was laid off multiple times that year so I don’t qualify for renovation loans. More so I had to move back in with my family which is a major shot to personal morale.
The good news: I’ve recouped my cash savings to $20k in a few months! I’ve got a few lenders lined up and am working with an agent.
My situation is a bit odd, and I’m trying to figure out the best way to go about it…advice is definitely welcome!Currently, I'm staying with family in Richmond, VA as a 30M (layoffs hurt!) so needless to say, I'm trying to exit asap!
However, I want to buy a house and not get tied into renting. My budget is $250k although I’d like to stay closer to $200k.
I’m looking for homes where I can live with a roommate to offset living costs, and would meet the 1% rule when I move out to my next home.Unfortunately, I’m having a very hard time with this. Most homes I find are in the .7%-.75% rent to purchase price.
So here are my choices as I see them (again, please offer any advice).
A. Buy a home on the cheaper side that negatively cash flows just so I can move out and collect equity on something using a conventional loan. Then, after a year, I can qualify for a renovation loan for another house, fix that up, and have a positive cash-flowing property. Pro: I have a home and flexibility. Con: I’m not making money on it.
B. Stick it out and hope things get better while stashing more cash away. Pro: Rapidly increase savings. Con: Risk being a 31M living with his family.C. Rent and hope things get better. Pro: I’m out of my family’s house. Con: I’m losing money and have less flexibility to leave my rental contract.
I personally am leaning towards A. It’s not perfect, but I’m fairly certain I can get my living expenses around $1k living with a roommate and I can bust *** to regain savings to buy a pure rental property.
In addition, we are seeing a huge influx of people from DC, NYC, LA, and Austin. I lived in Raleigh NC a few years ago and saw home prices skyrocket. I don’t want to miss that train here in Richmond.
Thoughts?
I'll go with a modified A strategy. Is there a way to find a 3 bed or even a 2 bed with a decent firecode approvable basement? Then you can generate income from 2 friends instead of one. I would hate for you to be losing money but you do need a place to live anyway.
Are you paying your family rent now? If you are then make sure that you are figuring that it.
Is there a way to find a partner with more Cash than you and you do the sweat equity and the work?Is there a way to buy with seller financing.
You know, now that you mention it, I think I can find a 3bd1bth around the city and meet that. I can rent it by room.
BUT, you've given me another idea with the basement. RVA doesn't have a lot of basements per se but the homes I've seen have a tall crawl space. High enough to comfortably sit in but not stand in. I'm thinking, what if I get some carpets for the cheap, put fluff on the ceiling and wall, a dehumidifier, and boom got a practice space I can rent by the hour. I'm connected with musicians around here. I'm thinking I get a 200k house, I'm probably paying $1600 with everything included (PMI, tax, etc.)I’ll have to see how much those spaces rent for but just thinking creative ways to use a non-bedroom.
3 bed Awesome.
That crawlspace idea is good. Might want to check with the city on egress requirements and soundproof it from complaining neighbors...
- Member since 2021 · 9 posts · 6 votes3y
It would be.. I don't have enough in reserves to ensure I'm comfortable.
- New to Real Estate · West Kingston, RI · Member since 2018 · 5 posts · 4 votes3y
Great question/answers :)
I dove into REI about ~2 months ago (this is my first post on here!). I've read about a half a dozen books so far, BRRRR sounds very interesting. I'm hoping to head to the next RI Real Estate Investing group meetup in May (can't make it to the one tomorrow unfortunately).
I've been watching auctions pop up in my nearby area, drive to them, see how they look, see what they go for, etc. I've also been looking into apps to help me with my funnel (deal machine, propstream, etc.). I'm also working on learning to analyze deals.Overall - just trying to become experienced enough with the process to pull the trigger on a first property. Given the market - and my lack of experience - I may have to wait for a larger dip/correction - but if something pops up that seems to work once I have confidence that I know somewhat what I'm doing - I'll hope to grab my first property.
Given we are both in RI - hope to see you around!
Dave - Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Rusley Dufort:
It would be.. I don't have enough in reserves to ensure I'm comfortable.
How many months do you have in reserves now?
What would make you comfortable?
Is the number higher because of you job? family? - Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Dave Brown:
Great question/answers :)
I dove into REI about ~2 months ago (this is my first post on here!). I've read about a half a dozen books so far, BRRRR sounds very interesting. I'm hoping to head to the next RI Real Estate Investing group meetup in May (can't make it to the one tomorrow unfortunately).
I've been watching auctions pop up in my nearby area, drive to them, see how they look, see what they go for, etc. I've also been looking into apps to help me with my funnel (deal machine, propstream, etc.). I'm also working on learning to analyze deals.Overall - just trying to become experienced enough with the process to pull the trigger on a first property. Given the market - and my lack of experience - I may have to wait for a larger dip/correction - but if something pops up that seems to work once I have confidence that I know somewhat what I'm doing - I'll hope to grab my first property.
Given we are both in RI - hope to see you around!
DaveYes. Definitely spend some time educating yourself.
It's different if you have been learning for 7 years and still haven't bought something.
- Member since 2021 · 9 posts · 6 votes3y
I do not have much in reserves now as I just purchased my family home. I am currently building it back up now.
- Member since 2023 · 27 posts · 42 votes3y
Quote from @Nathan Gesner:
I doubt you'll see thousands of responses. The majority of people are blaming high prices, high interest rates, low inventory, and lots of competition. Those are all true. It's not a great market right now and I expect it will get worse before it gets better.
David Greene compares it to swimming against the current. You can sit on the shoreline and wait for the current to change in your favor or you can keep swimming against the current. Those that continue to swim against the current may not make much progress, and they may even go backwards, but they will continue improving their technique and getting stronger. When the currents eventually shift, the people sitting on the shore will be late to notice the shift and they'll take time to get back into a rythm. Meanwhile, those that stayed in the water will take off like rockets and blow away the competition.
I love this! I'm in the middle of my first purchase in a hot market and sometimes I get a little discouraged when I'm reading these forums and seeing some of the deals that other people are getting elsewhere in the country. I bought a fixer-upper that I'm going to have to put a lot of work into, and when I look at home rentals on craigslist, I see that brand new, bigger homes are renting for the price that I'm paying for my mortgage on my outdated fixer-upper. That's a bummer because even after I fix it up, it still won't rent as much as a bigger, new house in a nice development. Nonetheless, I have to remind myself that I'm just getting started even though I'll be house hacking and still spending a comparable amount to my current rent, at least that money will be going into my equity now and that I can start building momentum. Plus if it were a "great" time to buy, I'd probably be priced out of the market even harder!
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3yYou could still always be looking. You may be able to be creative with seller financing or partners.
Quote from @Rusley Dufort:
I do not have much in reserves now as I just purchased my family home. I am currently building it back up now.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Adam Wayne:
Quote from @Nathan Gesner:
I doubt you'll see thousands of responses. The majority of people are blaming high prices, high interest rates, low inventory, and lots of competition. Those are all true. It's not a great market right now and I expect it will get worse before it gets better.
David Greene compares it to swimming against the current. You can sit on the shoreline and wait for the current to change in your favor or you can keep swimming against the current. Those that continue to swim against the current may not make much progress, and they may even go backwards, but they will continue improving their technique and getting stronger. When the currents eventually shift, the people sitting on the shore will be late to notice the shift and they'll take time to get back into a rythm. Meanwhile, those that stayed in the water will take off like rockets and blow away the competition.
I love this! I'm in the middle of my first purchase in a hot market and sometimes I get a little discouraged when I'm reading these forums and seeing some of the deals that other people are getting elsewhere in the country. I bought a fixer-upper that I'm going to have to put a lot of work into, and when I look at home rentals on craigslist, I see that brand new, bigger homes are renting for the price that I'm paying for my mortgage on my outdated fixer-upper. That's a bummer because even after I fix it up, it still won't rent as much as a bigger, new house in a nice development. Nonetheless, I have to remind myself that I'm just getting started even though I'll be house hacking and still spending a comparable amount to my current rent, at least that money will be going into my equity now and that I can start building momentum. Plus if it were a "great" time to buy, I'd probably be priced out of the market even harder!
You are going to learn alot with this purchase and it will make you better prepared for the next one.
- Member since 2021 · 9 posts · 6 votes3y
I don't have much now I'm getting it back it back up with my W2. And looking into maybe some creative finance options.
- Rental Property Investor · East Providence, RI · Member since 2018 · 1k+ posts · 1k+ votes3y
Quote from @Rusley Dufort:
I don't have much now I'm getting it back it back up with my W2. And looking into maybe some creative finance options.
Creative Financing works. Or Finding a friend with money who you could partner with.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.