dont know were to start feeling down

8 Replies

Hello there!

I'm live in Federal Way, Washington

Want to buy and hold a house for the first time. like most people, I want to get out of the rat race by doing the famous House Hacking

I already got in touch with a realtor from quicken loans (can somebody recommend me a good agent or a bank?)he told me that Washington is a private land(hard to buy) or something like that but it seems that my affordable price range of a house is 40k :( sounds to bad to begging with. so ill need my wife's credit score even that she do not work to improve that issue and also He needs her SSN(true?)

to make it simple this is my data:

-monthly income: $4000+over time every check

/work m-s, 4am-3pm+

-2years in the same job.

-monthly expenses: $300 car loan and I'm living in a 2bed apart I pay $1065. have being there for 2yrs never late on my payments.

Don't have money to make a nice down payment but my credit score is 660 

I know that the answer is to go and see my local bank or real estate agent, but I want so heard options from real people.

PS. example: I buy a house then I rent the other unit then?? what's next? save money and try to make another down payment for another house?

how I'm gonna be able to have more money to jump to another property?

Thanks and please tr to be really honest I know my situation isn't good but want to get this out if my head.

thanks BP community

Sorry to hear you're feeling down, but this is a great way to start.  I have a loan agent up in Washington who might be a good contact for you - he focuses on low closing costs but not "creative" financing.  Feel free to PM me for his contact info.  You can probably get away with 3% down but you'll have to talk to him to be sure.  And yes, he'll need your wife's SSN - you're partners so if she'll help they'll use her and if not, they'll take her off.  

Sounds like you should look for a duplex - 4plex to give you some free / discounted rent.  Save the rent and do it again in a year.  Tell your mortgage agent your plan, and they'll have solutions for you.  Tell your real estate agent your plan and they'll have suggestions.  

First step is to know your financial options.  

@Auriel Orozci , you have gotten good advice so far so let me add to it.  Get ahold of a Dave Ramsey book on how to control your spending as well.  If you make $4000 per month you should have a decent nest egg saved.  Having all personal debt paid off will help you get a loan also.  Since you are pretty new to the site read through the Learn section above it is loaded with great information.  Start learning your local markets to get a feel for expensive versus cheap areas and learn how to evaluate property values.  Good Luck.

@Auriel Orozci

You seem to have decent income. I don't know what your expenses are, but maybe you should try another lender. 

Originally posted by @Auriel Orozci :

Hello there!

I'm live in Federal Way, Washington

Want to buy and hold a house for the first time. like most people, I want to get out of the rat race by doing the famous House Hacking

I already got in touch with a realtor from quicken loans (can somebody recommend me a good agent or a bank?)he told me that Washington is a private land(hard to buy) or something like that but it seems that my affordable price range of a house is 40k :( sounds to bad to begging with. so ill need my wife's credit score even that she do not work to improve that issue and also He needs her SSN(true?)

to make it simple this is my data:

-monthly income: $4000+over time every check

/work m-s, 4am-3pm+

-2years in the same job.

-monthly expenses: $300 car loan and I'm living in a 2bed apart I pay $1065. have being there for 2yrs never late on my payments.

Don't have money to make a nice down payment but my credit score is 660 

I know that the answer is to go and see my local bank or real estate agent, but I want so heard options from real people.

PS. example: I buy a house then I rent the other unit then?? what's next? save money and try to make another down payment for another house?

how I'm gonna be able to have more money to jump to another property?

Thanks and please tr to be really honest I know my situation isn't good but want to get this out if my head.

thanks BP community

Hi Auriel

My good friend @Steve Vaughan

is the best creative finance guy in Wash State

Call him!

Find a local real estate agent.  Ask them to send you e-mails when properties are available that are in the radius that you are looking for that have any second living arrangement - MIL, rentable basement, duplex, triplex, quad, say under $200K.  When you get notifications, run the numbers on all of them - what it would take to buy it, what the monthly cost/cash flow would be, etc.  Decide if you are willing to get a fixer upper, and determine if each property is an area you'd be willing to live in.

If your wife is willing, pool credit with her to qualify for a bigger loan (yes they need her SSN for that).  Figure out how to trim expenses.  You'll need a few thousand in reserves plus the down payment.  Look for local small banks, see if you qualify for any special loans.

You will have a hard time getting a good cash flowing property in your area.  You'll need to focus on growing net worth by paying down the mortgage and with appreciation (modest, not speculative).  Also start thinking about if you want to use a PM (and start looking for one) or if you want to landlord yourself (and start getting educated, especially about King county specific issues).  As you work on these things, your timeframes and next steps will become more apparent.

I would definitely recommend getting in touch with a different financier, lender, or mortgage broker.  Find one you can meet in person and comes with recommendations (like the ones referred to above).  I also have one I would recommend.  We tend to not accept offers from buyers that are preapproved through certain lenders.  Big big banks and "online" lenders being a couple.  

Get a good plan together to acquire your first property, stay very focused on that goal and try not to get distracted, it can be all too easy in real estate investing to get distracted.  Duplex is a great idea, live in half, rent half, save money, leverage that duplex for the next property, etc.  

Have a written plan and goals.  Be specific about what you are trying to accomplish and WHY.  Review this daily and make it a reality.  

@Auriel Orozci , if you're not too picky about having the exact house you want (since this is your first home anyway), have you ever thought about looking for homes for sale with lease to own options? This might given you the time to overcome the hurdles to obtain a conventional 30 year loan. I don't know how many owners do it in Washington, but they do pop up now and again here in OC. Just buy carefully and make sure the deal is a win win for both parties. 

@Auriel Orozci

Hey, Auriel. Try buying and selling unwanted rural vacant land west of the Mississippi. It does not require any financing. Most of the properties we purchase are about $1,000 total price.

We double and tipple our money on cash sales or throw off a 50% annual return for more than 10 years.

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