1st time looking to buy an investment property

Buying & Selling Real Estate
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1st time looking to buy an investment property

Michelle Dong
Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes

I live in West Palm Beach Florida and am looking to buy a SFH to house hack. The issue I'm having is finding a townhouse/villa or SFH to fill what I qualify for. Any advice on how I can find deals that catch flow and fit in my financing criteria? Thank you in advance.

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Brian Van Pelt
Specialist · Owings Mills, MD · Member since 2017 · 485 posts · 415 votes
6y

With out know the specifics of what you qualify for or what exactly you are looking for it's hard to offer advice. 

Start with a local Realtor.
@Michelle Dong

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  • Brian Van Pelt
    Specialist · Owings Mills, MD · Member since 2017 · 485 posts · 415 votes
    6y

    With out know the specifics of what you qualify for or what exactly you are looking for it's hard to offer advice. 

    Start with a local Realtor.
    @Michelle Dong

    4Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    Hi Brian, thank you for such a quick reply. I talked to my broker and he told me I qualify for a house at max of 160k with no HOA and a townhouse or villa of 125k with a max HOA of 250. I will be using an FHA loan, that's why I was planning to use the house hacking strategy.

    1Reply
  • Brian Garrett
    Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    6y

    Unfortunately you won’t find anything around this area at that price point unless it’s in a rough area.

    0Reply
  • Todd Trader
    West Palm Beach, FL · Member since 2014 · 41 posts · 25 votes
    6y

    @Michelle Dong pm me your number and I'll call you in the morning. Your pickings are slim at that price point here in South Florida.

    There may be other options. Just need to know your end goal...and how fast you're wanting to get there.

    1Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    @Brian Garrett

    All the deals I was spooking at with that price range was in a high crime rate area. I thought about finding a partner to go into a deal with me as well. What are you thoughts ?

    0Reply
  • Brian Garrett
    Real Estate Investor · Palm Beach County, FL · Member since 2017 · 3k+ posts · 2k+ votes
    6y

    You could certainly try and find a partner but that will likely be more difficult with a house-hack unless it’s a friend or family member. Otherwise most investors will want to turn their money over quicker rather than tie it up on another persons owner-occupied property.

    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    @Todd Trader Hi Tom, I think I have emailed you. Let me know if you did not receive my contact information.

    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    @Brian Garrett

    Since my options seem limited. In your opinion, what are some ideas of next steps I could be taking to make this work?

    I have also thought about looking into duplexes, and 4plexes. As you know, in Palm Beach those are approximately 400,000.

    1Reply
  • David S.
    Investor · Prairieville, LA · Member since 2015 · 311 posts · 424 votes
    6y

    @Michelle Dong

    Hi. You really need to be looking into off market properties. Local real estate meetups are a good way to network with seasoned investors who may have inventory to sell. Although flipping a contract wholesaling in your state is illegal, you may find legal wholesalers who take title and resell at these meetups. Also, you can use "wholesaler methods" in finding properties i.e. website, PPC advertising, SEO, mailers etc. Call numbers on for rent advertising and ask if they want to sell. Not especially for newbies but when you have more experience, you can attend public auctions. Short sales are also making a comeback but competition is fierce. The only one I got recently is because I had insider knowledge of the property. I suspect even more banks will agree to short sale since they can't forclose for 360 days if the borrower asks for forbearance. In this changing and historical market, patience should be excercised. Undercapitalized landlords will be in distress since many states have issued a moratorium on evictions. I am not sure if Florida has done this but many states have issued this moratorium.

    1Reply
  • Rita Medeiros
    Rental Property Investor · Pompano beach, FL · Member since 2017 · 478 posts · 194 votes
    6y

    @Michelle Dong Come to our women’s group in ft lauderdale when we are able to go out again.

    2Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    6y

    @Michelle Dong there is something that direct lenders can offer that many mortgage brokers cannot, when it comes to helping clients qualify for a higher purchase price. I’ll explain this to you. :) 

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    1Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    Hi Raymond, thank you for connecting! Yes, I would love to learn more about this.   Could you please explain this?  Thank you 

    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    @David S. Thank you for your advice. I will do more research and attend some meetups to start networking. I have thought about looking at off market properties as well, but I guess it’s me not knowing where to start 

    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    @Rita Medeiros I would love to attend the women’s Real Eastate meet up.    After this virus this is over,  what days and times are the meetups? 

    0Reply
  • Nick Monge
    Rental Property Investor · Denver, CO · Member since 2018 · 74 posts · 25 votes
    6y

    I'd say find a co-signer.

    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    I’ve talked to a family member about co-signing. That is what I’m leaning towards right now but would like to educate myself on other options too.

    0Reply
  • David Pinlac
    New to Real Estate · West Palm Beach, FL · Member since 2019 · 1 post · 0 votes
    6y

    Hi everyone. I am interested in and following this discussion, I as well am working towards house hacking my first property (duplex in my case). This raised a question for me, if she were to get a cosigner with the intention to owner occupy with an FHA, would her cosigner (family member) who would also be on the mortgage be obligated to live in the property too? Does it depend on who's primary on the loan?

    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    Hi David, I thought for an FHA only one person on the lease had to live there. Not 100% sure though. What are you guys thoughts?

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    6y

    @Michelle Dong@David Pinlac you are allowed to have non occupant co borrowers on an FHA loan that are "family members", without intruding on your loan to value of 96.5%.

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    Thank you for confirming 

    0Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    6y

    @Michelle Dong did you message me? 

    [email protected]619-456-8311
    Helm Mortgage Corp.5127 Reviews
    WebsiteView Page
    0Reply
  • Javier Rosales
    Rental Property Investor · Los Angeles, CA · Member since 2019 · 160 posts · 58 votes
    6y

    @Michelle Dong I would try to generate as many leads as possible. From agents, brokers, wholeseler, Craig’s list. Have you heard of property Radar?

    1Reply
  • Lionel Li
    Rental Property Investor · Queens, NY · Member since 2017 · 93 posts · 128 votes
    6y

    I think the house hacking idea is a great way to start. I would've liked to start that way if my area wasn't so expensive. 

    After you're qualified by a lender and while you look for that next deal, I'd concentrate on your budget to make sure your expenses aren't too high at the moment. At the same time, up your savings rate and make sure you can build up some more capital. Even if you can't get/afford the property you want right now, there's no reason why you can't start to prep. 

    The main goal is to make sure you're ready for the added fixed expenses like PITI & utilities and unexpected costs like bigger renovation than quoted, repairs, vacancies etc. What lenders say you're qualified for doesn't always translate to what you're able to afford.

    After you've worked with your real estate agent and researched the areas you'd like to purchase in, you should be ready to pull the trigger when the next deal comes along. 

    1Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    @Raymond J. Rodrigues. I did message you.  Did you receive it?

    0Reply
  • Michelle Dong
    OP
    Investor · Boca Raton, FL · Member since 2020 · 113 posts · 45 votes
    6y

    @Javier Rosalesi have no heard of it.  Could you explain?

    0Reply
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