All Forum Posts by: Andrew Powers

A planning suggestion...

-Understand what your goals are and set target dates to achieve them. Be lofty yet realistic with your goals, theres a balance in there that's unique to each person. Then reverse engineer your goals down to small actions you can do every day to get there.

-Take steps that would get someone closer to closing on a house. Reverse engineer: closing a deal requires financing, real estate agent, location, property,  etc. Lay out these milestones in a rough timeline starting from the end (closing date). This will make it more clear what steps you need to take.. if it seems too short a timeline, no problem, adjust it to make it work for you. When you go along, things always don't go as planned or you didn't anticipate something, so adjust. 

An action suggestion...

-like others have said, you'll figure things out, especially after buying your first property. This is of course true, but also don't take this advice as an excuse to not analyze a deal or make a rash decision.

I would say keep it simple. Pay off debt by directing income toward loans and reducing / eliminating your housing expenses by House hacking. 

If you expect to get a job back again soon, focus on landing the job and in the meantime practice analyzing properties and numbers.

Be sure you are both OK buying a house together if you go that route. Before you decide, write down expectations up front with each other so you are on same page.

Also consider other financing options. There is a 3% down payment first time home buyer conventional loan. It's for single family only, so you would need roommates or have a property with ADU, mother in law suite, etc.

House hacking is a great way to go. I recommend seeing if there's any on market houses ready to move into, could be a brrrr but not necessarily. 

House hacking is reduces or eliminates your living costs. Tenants pay for your house + you don't have to pay rent.

Owner occupied gives you low down payment loan options. FHA is a great option. Also consider first time home buyer conventional loan which is 3% down payment, single family only. Conventional offers are stronger than USDA or FHA (not saying those aren't possible though). You can house hack with roommates or target finding a single family with an ADU or mother in law suite.

What are your investing goals? Are you looking to buy more properties or no?

Congrats! How did you find this deal? 

Have you analyzed the numbers? And do you mean you will cash out refinance to get money for down-payment on new home?

Take your monthly costs of owning the house (PITI) once you refi along with reserves and other costs if any... compare to the rent income you would get for it. BP calculator is a great tool and there's youtube tutorials for it

Message multiple airbnb hosts and tell them your intentions and ask if they have any interest. I think that would be a good gauge if people in your area want to offload airbnb PM duties 

Welcome! I bought my first house hack in metro Detroit last year. I started looking for multifamily but inventory is low. Detroit has more multi family. I opted for a large single family, renting out rooms. The numbers in this area definitely work. Good luck with finding your house! Let me know if you have any questions or need a 2nd set of eyes on numbers 

Look into heloc and cash out refinance. There's alot of discussion in the forums comparing them so I recommend a search 

Can you do a new offer or if they come back, counter offer them to remove all tenants before closing?

I would not trust that tenants actually pay in this scenario unless there is documentation (ie deposits into landlord's bank account every month). Even so, with no lease the tenants have great opportunity to not pay upon transfer of ownership... things can work out but the stars need to align, which I personally wouldn't bet on. Depends on your drive, risk aversion, etc.