Providence, RI · Member since 2018 · 29 posts · 409 votes
7y
Having just recently bought my first property, I know for myself what was holding me back was the fear that I would overpay, especially in this type of a market. I would get analysis paralysis and basically talk myself out of every property I looked at.
Uhhh, only thing keeping me is not having a job pretty much, or not having enough to invest. No W-2 income, I get VA compensation, and I do app based work like uber for extra money sometimes, nothing serious though not a full time driver, I didnt even need to file last year becuase I didnt make enough. I don't have a job becuase I don't want one right now, its personal reasons I'm not gonna list here, ntm I honestly cant work just anything or else I'll probably just quit like I have done several times since I've been out of the military, I don't want to keep putting employers through that. I haven't done a W-2 tax return in several years. I've got around 36k saved up plus a car that I own. I've have good credit and all that (mid 700's), but I highly doubt anyone would lend to me. Over a year ago, I spoke to a VA loan lender and he even said they can't do anything because they don't consider VA compensation for loans, which I find halarious (as of writing this, I just seen an article that says VA compensation of 70% does qualify me so I'll have to make some calls Monday not sure why that guy told me absolutely no), so after that I didn't speak to anybody else about getting a loan. Tbh I don't want for much, I'm not hurting for anything, I budget etc and do fine renting. But I'd of course like to do better, not getting any younger and I want to invest in real estate. I have like 7 years left to use my GI bill so I'll probably go ahead and do that next fall...(I'm moving soon so not this fall). BAH from GI bill for school + VA compensation and renting a cheap place will help me continue to save, probably save more as my income will double during school semesters. I'd love to be able to buy a small house while going to school to live in, would probably cost the same as renting...but as I said very unlikely if I can't get a loan. I'll find a job when I'm done (that I can tolerate and enjoy doing) and I'll start investing then. Until then I just continue to learn, and evaluate deals, save money. That's pretty much it. But if I could get a loan on a like a 2-3 bedroom now, I'd do it. That's not necessarily investing but it'd be a start, potential room hack etc. Sorry for such long response, but that's my reasoning.
Keep learning. You have the ability to buy properties without a regular lender. Some people seller finance their homes. Some people just want out and have no mortgage. Some hard money lenders will allow you to buy and rehab a home without a job.
Another option is to do wholesaling. You don't need a job to be wholesaling properties.
The house hack is a great idea. Keep looking into it.
I wish to house hack a SMF next Summer. What holds me back is estimating rehab costs.
By next Summer I will have just enough money to comply with FHA requirements for a 3-4 unit, so not much emergency funds. I am a first-time home buyer and the entire process is new to me. How can I learn estimating rehab costs and especially, manage a project knowing that an FHA approved contractor won't rip me off.
I know this is a lot, any help would be appreciated.
Manuel
#1 Estimating Rehab costs is hard.
Some experienced agents can give you an idea on costs.
Join a local REIA. Some will have resources for you.
Pay a contractor to walk through a couple houses with you.
See if you have a relative or family friend who has rehabbed a home before. They can help you estimate.
Bergen County · Member since 2019 · 13 posts · 5 votes
7y
@Frank Patalano. Since I’m brand new...other than lack of funds, I’d say finding a place to start. What I mean is not finding a farm location, but finding a niche. There’s a lot of ways to make money in real estate. It can become overwhelming to us newbies.
@Frank Patalano. Since I’m brand new...other than lack of funds, I’d say finding a place to start. What I mean is not finding a farm location, but finding a niche. There’s a lot of ways to make money in real estate. It can become overwhelming to us newbies.
There are a lot of ways to make money in real estate. If you don't own a home I would do a house hack first. Besides that set a goal to decide on one strategy within the next 30 days. Then do it.
Bergen County · Member since 2019 · 13 posts · 5 votes
7y
I do own a home. So house hacking will be hard for me. But I will make it my goal to decide what avenue I’ll be going down in 30 days. For the time being, I’ll get educated in some aspects in real estate that intrigues me. One day at a time!
Muskogee, OK · Member since 2018 · 9 posts · 9 votes
7y
@Frank Patalano
Nothing. I've went pro just yesterday and am going to start analyzing properties using the calculators. Looking to build my network and planning to go to the next local REI meeting in Tulsa, OK.
Nothing. I've went pro just yesterday and am going to start analyzing properties using the calculators. Looking to build my network and planning to go to the next local REI meeting in Tulsa, OK.
Awesome. Keep me in the loop. I dont know anything about that market.
@Frank Patalano finding the “perfect” opportunity.
Our best deals NEVER seem perfect ahead of time.
Imo the better way of looking at it, is what are your exit strategies if things don't work as planned. And I think your best deals will be those that you make "perfect".
Everyone can do the basic math, its a really competitive market right now, you almost have to find a property that you can turn into a deal.
Look everyone can luck out and have a deal fall into their laps, but the reality is today, deals are made, you a fixing something up, seeing something used in a different way than the average investor or whatever to make something a deal.
Our best deals in the past we have paid over asking and no one else saw what we saw in the property.
A couple of examples, one of our houses had terrible pictures, and we paid over asking. $500/month in net renta and $100K in appreciation since 2014.
Another house we had $200-210K in equity since late 2015, $1000/month in cash flow. We put 20-30K into a 180K property, and have refinanced it to remove all of our initial investment. Took a funky 3 bedroom house that rented for $1,400/m and turned it into a 4 bedroom house that is typically rented to med students for $2800/month. Og and this house is sitting on a multi family lot with a view of downtown.....AND a LOT of major development in the area. IE the lot could be redeveloped in the future for more upside.
If you ran the numbers $1,400/month rent on a house you paid $180K. Not the greatest numbers. it wasn't the "perfect investment". We did things that MADE it the "perfect investment"
IMo that's the thing to look for, what can you do to force appreciation?
I’m trying to decide whether I start small and buy one single family home to get systems in place (property management, legal, accounting etc) or do I start larger and buy 10 homes. We can afford to go bigger, just want to be smart.
Rental Property Investor · Atlanta, GA · Member since 2019 · 10 posts · 0 votes
7y
@Frank Patalano My sons are going to be investing with me, so our challenge is deciding on best location as I am on GA and they live in FL. We have tried to engage realtors but keep running up against ‘’have you applied for a loan yet question’’ and we/I am unsure what is the best route to go, apply for a mortgage or try find an investor. Still lots questions/stuff we are trying to figure out...
@Frank Patalano finding the “perfect” opportunity.
Our best deals NEVER seem perfect ahead of time.
Imo the better way of looking at it, is what are your exit strategies if things don't work as planned. And I think your best deals will be those that you make "perfect".
Everyone can do the basic math, its a really competitive market right now, you almost have to find a property that you can turn into a deal.
Look everyone can luck out and have a deal fall into their laps, but the reality is today, deals are made, you a fixing something up, seeing something used in a different way than the average investor or whatever to make something a deal.
Our best deals in the past we have paid over asking and no one else saw what we saw in the property.
A couple of examples, one of our houses had terrible pictures, and we paid over asking. $500/month in net renta and $100K in appreciation since 2014.
Another house we had $200-210K in equity since late 2015, $1000/month in cash flow. We put 20-30K into a 180K property, and have refinanced it to remove all of our initial investment. Took a funky 3 bedroom house that rented for $1,400/m and turned it into a 4 bedroom house that is typically rented to med students for $2800/month. Og and this house is sitting on a multi family lot with a view of downtown.....AND a LOT of major development in the area. IE the lot could be redeveloped in the future for more upside.
If you ran the numbers $1,400/month rent on a house you paid $180K. Not the greatest numbers. it wasn't the "perfect investment". We did things that MADE it the "perfect investment"
IMo that's the thing to look for, what can you do to force appreciation?
I’m trying to decide whether I start small and buy one single family home to get systems in place (property management, legal, accounting etc) or do I start larger and buy 10 homes. We can afford to go bigger, just want to be smart.
If it doesn't matter then buy one house per month. I would personally mix in a couple multis and not just all singles but everyone has a different path.
I have a young and growing family some 500 miles away and I'm struggling to continue to manage my long distance property.
It's been a fantastic investment for the last 5 years but I can't take on another while managing this place AND be a good father / husband.
I understand completely. I would see if you can find a referral for a property manager in the area. If you bought it through an agent maybe they can refer a property manager.
@Frank Patalano My sons are going to be investing with me, so our challenge is deciding on best location as I am on GA and they live in FL. We have tried to engage realtors but keep running up against ‘’have you applied for a loan yet question’’ and we/I am unsure what is the best route to go, apply for a mortgage or try find an investor. Still lots questions/stuff we are trying to figure out...
If I were you I would just get a loan pre-approval. You don't have to use it. But it would shut some of the agents up. What type of investing do you plan on doing ?