All Forum Posts by: Austin Youmans

That wouldn't really be cash flow then so it would only be useful in comparing properties but then you are back to the standard CAP rate.

You are correct on the FHA program.
The only downside is that you have to pay PMI which is about $50 per month per 100k of sale price but talk to your lending agent and they can give you a lot more information.

Checking tenants out is a good idea mainly for a bargaining chip if they are not great tenants but I wouldn't shut a deal down because of it as you can always get new tenants.

I would look more into the condition of the property as the tenant has been there for 2 years and has been paying so if the property looks good and clean then I wouldn't have a problem with it.

Are you needing a appraisal for a bank or just for your own curiosity?

The county assessors website is usually much less than an actual appraisal at least in my market. 

If this is for a bank you need an appraiser but if this is just for you I would just ask a realtor what they think they could sell it for or do your own market analysis looking at recent sales.

Yes, you would need a 203k Loan.

Talk to a local real estate agent and find one that has done 203k loans in the past as they do have their own set of rules and hoops to jump through.

The time line really depend. I ran into some mold issues and an appraiser that wouldn't do his job so mine took longer but I am told that most can close in 60 days.

Hoops:

1) you have to hire a general contractor to do anything under the loan. (Get a contractor that will work with you so you can piece out some other work.) ( I did cosmetic repairs myself and did not include it in the loan because any work done under the loan can not be done by you)

2) min rehab budget of $5,000 and max of $35,000 for a streamline 203k which is what I did. (not sure how it is different from a full 203k.) (the max amount also need to include a 15% emergency fund)

3) contractors need to bid the project by line item and given to the lender.

I am sure there are other things but that is what I can think of at the moment.

So definitely find a lender and a agent that has done these before so they can help you through the process.

Flipping takes more time than landlording unless you have connections already. so if you are concerned about working a full time job and doing something else I would go with house hacking. But you could do a 203k loan and flip a 2-4 unit to house hack, that is what I did for my first deal.

As far as I know you can have your own Web site but need to put your brokers name on the page or any advertising for that matter. of course I would just ask your broker as they may have their own rules. 

Welcome to BP

Let me know what deals you get under contract

Here is a good article about driving for dollars and how to find people.

https://www.biggerpockets.com/renewsblog/2013/05/03/driving-for-dollars-bible-part-1/

You should make your goals the process and not the outcome.

Meaning set goals like I will do so many direct mail letters, go to so many RE meet ups etc.

If you make your goal to close you first deal it is likely to get you into trouble as you will want to fudge numbers to make it work just to meet your goal but if you make your goals about the process then the process will lead to the outcome you want but maybe a different time line.

How bad is your credit? Have you looked into FHA loan to get a 2-4 unit place and live in one of the units.

Being an agent your downpayment would be super small due to your commission.