All Forum Posts by: Allen Bannister

@Nicholas L. I’m 25, and have been looking for a solid 18 months, probably toured 15-25 houses. Working in an assessing office and learning more and more about houses and the value attached. 

You’re right, I believe im going to pass on this property and wait for something a little more “simple” and “clean”. 

Quote from @Jaron Walling:

@Allen Bannister "I have never bought a house." - Turn around and run away from this property. 

Cheers. 

Lol while I appreciate the feedback, this makes no sense to me at least.

Should my lack of experience shy me away from purchasing a property more than it would then someone else. Is it the conditions I've mentioned that is prompting you to chime this? Any elaboration other than "run" would be sick. 

Quote from @Jeremy Fleming:

Hmmmm. Sounds a little sketchy. Tell me about the foundation? How old is the property?

Built in 1890, so don't get me wrong, its old and its going to need some work at some point, and I knew this going into looking at it. I could send you a video I took of in the crawl space if that would help

Quote from @Gino Barbaro:

@Allen Bannister

You got me at the top story is leaning inward. You need to get a clear understanding of the cost to repair, if it can even be repaired. Foundation and roof work are very expensive.

It sounds like a good house hack based on pricing and rents, but make sure you check crime and median income to justify rents.

Exciting!

good luck

Gino

 100% Gino I agree. I was more or less looking for advice before I even brought it under contract. I would then get a inspection of the foundation and house but then I'm 1k in the hole without any promise of purchase beforehand. Choices choices choices lol. 

I have never bought a house. I want to house hack using a 5% conventional loan. The triplex I'm looking at is listed at 130,000. Its in pretty decent shape other than some cleanup and foundation issues. 

The 3 sty home (including finished attic) has a crawl and I can see the owner has tried to reinforce the bottom with wood planks running from the foundation up to the 1st floor. I also noticed everything on the top story is leaning inward ever slightly so. 

Is this a deal breaker?? The home would generate over 2.5k fully rented out and fixed up really conservatively. If I need to redo something down the line 10-20 years that is also expected and I will have capital expenditures built up by then. Not experienced, and don't want to make a bad first move!

I'm looking to buy an investment property but also looking for a main residence. I'm 24, working full time 4 days a week, decent income but i don't have currently enough for 20% down which I've heard is standard for 3-4 unit multifamily. I would prefer not to do a FHA and have to pay PMI on 3 different units till I'm at 20% invested.

I've also heard of a 3.5 - 5% conventional loan where you can avoid PMI and avoid laying down immediate 20% down. The property would cash flow even with me in one of the units. Just need to figure out the best type of loan for a younger dude tryna to get his first purchase. I plan on living in it for at least a year.

Any advice is appreciated!!

 Recently graduated college, and yes I was not financially thinking of my future and how a loan would go so I have never owned a credit card. (was taught they were bad mostly) I have been paying off a smaller loan so I have it built up to a tad under 700, plan on getting a card this weekend to put all my monthly expenses on. Thank you for your feedback, and you're right, my ending goals will help my gage how to start.  

I’m looking to house hack a duplex as my first rental property and I’m stuck on which type of loan to use as a 24 year old with next to no credit and also the length of the loan.

I’ve heard 15 year has lower rates and you can pay your house off more quickly.

But a 30 year loan will free up more cash flow to put towards your next purchase to build up your portfolio.

Any personal experience? Is it preference?

@Steven Wilson

Thanks for the reply Steven. I am beginning ti analyze deals to better understand what a “good” deal looks like to me.

Luckily I have an uncle that has been doing real estate for a decade now and I brainstorm with him all the time, always looking for mentors and just overall knowledgeable professionals in the field, so great suggestion :)