All Forum Posts by: Austen Mueller

Welcome to the community! Your in the right place. Where to start is always the big question. So many directions and factors to consider its easy to get overwhelmed and turned around. The first move is to get pre approved! This will determine if you need to put 20% down or possible using a low down payment conventional loan of 3% (assuming your not going FHA rout). This factor alone will give give you a very good idea of what you can afford and what market you can afford. Is the property turnkey? or does it need $30k worth of rehab?

These will be the biggest factors. then you will need money for closing costs.

As for reserves. Its always good to have reserves. What if the furnace breaks? can you shell out $10k? 

Make sure you have some cushion money and that the deal will cashflow and your also taking vacancy into account. How long can you have vacancy? 

Before looking at potential investments you need to understand how airbnbs operate inside and out.

Hope this helps. Best of luck to you! keep going!  

@Zac Gronda This is interesting. This is new to me as well. I assume they must do this before the offer is submitted. Other wise it sounds like the evaluation would be an appraisal/contingent? 

What is your goal? 

there will be no Lender that will lend money without doing their due diligence with an appraisal and some estimates.  Your best best would be working with private money or partnering with another investor. 

If your trying to remove all contingencies to make the offer as enticing as possible by trying to get around the appraisal/mortgage contingency.  Then you can Waive the mortgage contingency and still use hard money. If you do this then your basically saying "If I cant close in x amount of days you can keep my earnest money deposit" Higher the earnest money deposit the harder it is for the seller not to take that bet. 

I'm not recommending you do this! Just simply trying to educate on another possible option for you.  

you have 2 options: 

1. partner with private money on your deals

2. Waive the mortgage contingency anyway and potentially lose your Earnest money deposit. 

(1) is this the right time to invest in multi family due to high interest and skyrocket home prices?

Answer: Yes now is still a good time to invest in a househack. What makes househacking so great is the little out of pocket expense utilizing an owner occupant loan. In this softening market we are seeing more opportunity for buyers to get seller assistance to pay down loan points(increasing cashflow) or covering closing costs(increasing cash on cash return)  

(2) what are the things I should be looking for in order to get a good multi deal that will be profitable?is it fixed interest,the value of the house and the cash flow after expenses?though I order for Brandon turnel multi family investing book but not yet arrived

Answer: I cant speak for your market however in my market of Pennsylvania we no longer see househacks that cashflow while you live in the property. If you can pay of your mortgage that's great. at that point your most likely coming out of pocket less than you would if you were a renter in the same market. If it cashflows when you leave that's really what your looking for.   

(3)should I contact FHA lender right now for pre approval or still hold on?

Answer: I would look for a lender and get pre approved now! its my understanding you only need two years of work experience if you get paid via commissions. If you have a w-2 job then you just need 2 paystubs. If you cant get pre approved you can come up with a plan with the lender to give yourself a path and actionable steps towards reaching your goal. Its always worth the call. 

(4)can anyone also link me to REIA meet up in Houston area if there is any...thanks

Answer: Cant help you there haha

(5)will 25k be enough for down payment for triplex or four plex multi family ?

Answer: that depends on the market. But my guess is that is a little tight. You may also want to consider a duplex or a single family that you can fix up. Remember you get what you pay for. you may want a 3/4 unit for cashflow. but for that price it may be in terrible shape or in a part of the market where you don't want to live and have a hard time renting. 

Hope that helps. I wrote a little blog on this actually. I think you can see it if you go to my page. 

Make buyer put verbiage in the agreement that seller wont make corrections to mold if present in the home? Make it for the home buyers own informational purposes only. 

Its not that your hiding something. Its your responsibility to get that house sold. Opening your clients to an inspection that can kill the deal definitely hurts the buyers offer.

We like Red Rabbit Insurance. They are used to working with investors. Great prices too. 

Congratulations! and welcome to BiggerPockets. You are on the right course. Best of luck to you in this New Year.  

Everyone here hit a lot of great points. Only thing I could possibly add here is there is a large market for out of state investors. Make some good contractor connections, and property management connections. 

https://www.lapstonellc.com/co... Contact Justin Mendez at Lap Stone LLC. Very professional, does great work.

That seems high even with nicer finishes. I would contact Justin Mendez. Lapstone LLC. https://www.lapstonellc.com/co...
 He is very professional and reliable.