I have 25k and I live in socal

6 Replies

I have 25k and I live in socal I just got denial from preapproved because I'm a 1099 and I've been paying myself to little and writing off too much. I'm looking to buy out of state. I'm reading, lisening, and learning, but how to I find good markets to buy in in other cities like Detroit or the midwest like Saint Louis and Kansas city. I refuse to give up. I will make this happen, but I'm just trying to do my do diligence. I'm reading the Brrrr book and will read the investing out of state book next. Thanks.

Hey Luther!

Is your lender helping you with a plan to get qualified? 

As far as markets I can only speak for OKC. I've seen hundreds of out of state investors come to OKC so that speaks for its self. 

As a quick overview C class price points range for 60k-80k, you'll typically hit 8% cap rates and insurance and taxes are around 1%. I'm already factoring those into cap of course!

WIth 25K you could comfortably purchase an 80k B class property. So 16K down 2K in closing costs and 3k in insurance/tax pre-paids. 

@Alyssa Dyer. So my morgage broker is the one that said I cannot get pre-qualified. If I went to another state does the process change? Also is OKC a good market right now? I'm not looking for easy answers.. but how do I find out what markets to look into and since it's out of state I have to put 20% down right?

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For any property that's not your primary residence, you'll likely have to put at least 15% down, even if it's in state. OKC is a good market because of what I outlined above. Basically, if you put 20% down you'll likely make a couple hundred a month after all expenses, maintenance, vacancy and paying your mortgage. 

The process will likely be similar to what you've been through but I'm wondering if your broker told you what you need to do in order to qualify and if they're helping you, or if you need to be introduced to a broker that is going to provide you with more advisement. 

@Luther Barge was it more investment focused lender? You may just need to be introduced to someone who has a better understanding of what you're doing, or maybe you need to make more! I'm just trying to find a solution! Did they understand you only need to qualify for a loan that's 50k?

@Alyssa Dyer yeah so to break it down. In 2017 I made 108,000 - write offs like 50k o but 2018 I worked for the union for 4 months all together I made 120k but 60 was w2 the other was independant. All my money was independant or w2. So he said he because some is independent and some w2 it was a problem. Thanks for all your input btw