All Forum Posts by: Rebecca Belnap

Either will add the same value.  I prefer engineered since it doesn't shrink over time.  I have lived in 2 homes that had 2.5 to 3 inch wide solid hardwood, one was maple, one was oak, and in both cases the gaps would open up and collect a lot of gunk.  You may not have the same issue with your high humidity.  If you go with solid wood, go for the wider planks that are prefinished with a slight bevel to the edges to avoid the problem.

@Account Closed is absolutely correct.  You said it has been listed for more than a month and you still have items unfinished?  Finish it in 3 days or hire a contractor.  I used to do this, always doing my own work to save money.  I have rented to 2 single contractors this way.  I got repairs done instead of rent in both cases.  I know it looks like just a few things to you, but everyone knows that the odds of you finishing once they give you money goes down.  

Get it finished, and get out.

There is only one program that I know of that gifts the down payment funds for an FHA loan (3.5% down) on a multi-family and that is the Chenoa Fund. Unfortunately they are not available in 6 states, IL ,LA, MS, NY, SD, and WV. It has 3 options depending on income levels. A Gift grant that doesn't have to be repaid, a soft second with no payments that is forgiven after 36 months of payments on the first mortgage, and as fully amortized 2nd that does have monthly payments that is either 0% interest for 10 years, or 5% interest for 30 years.

It is easier to just do a single family home, but they do say that they will look at duplexes on a "case by case basis".  Just thought people in the other 44 states should know. 

That hard money panel was amazing. I now have 3 options for 100% financing with 65% ARV and 1 goes to 70% ARV. Now to see if they actually fund.

They are correct, the Credit unions are all a good bet. America First even has a non-owner occupied version of a HELOC that is supposed to loan up to 80% of appraised value. I need to talk to them about how soon after purchase they will do that loan.

1. Most things can be done online. KSL is where I find most of my contractors, and I think a good property management company would be essential, but it really can be done. For networking online I mostly just chat with people here in bigger pockets. When you are in town, there are a lot of local REIA groups that would be happy to welcome you.

2.  Yes, you can do the license online except the final tests which are done live.  I like Praedo for the classes, but there are a lot of online options.  You do need a broker and since you will probably only do your own deals when you are out of county, you need one that charges only when you have a transaction.  I have a recommendation for one who only has a small transaction fee plus errors and omitions insurance, but if I list it here they might block the post.

3.  Only you can decide what you are comfortable with.  I would and I am.  The key is making sure that the properties you buy are worth the risk.  If you stick with properties that can be held as rentals if there is a downturn you should be able to ride out any downturns.

4. Make sure they still can cash flow. I know that America First has a non-owner occupied loan that works like a HELOC but for investment properties. You can borrow up to 80% of the equity in the home then pay it back when it sells so you are always ready for a flip.

5. I like Dave Ramsey for Debt payoffs and debt reduction for personal expenses. When it comes to investments, he tends to slow down investors. It's important to look at the reason for the loan and to make sure that even in a bad economy the loan will make more income for you than not doing the loan. Using a credit card for a vacation is bad, it does not provide income. Using a tax deductible loan to increase your monthly cash flows by $1500 is okay if you have the reserves to do it safely. Do listen to him about having 6 months of reserves. That's 6 months of PITI on all properties in some form. This could be cash in the bank if you are conservative or in your 401k if you think you would borrow from it in an emergency. Just what makes you able to sleep at night. If it is causing too much stress, slow down and fix the problems until you feel in control again.

I've got a source that will loan on Owner-occupied double wides if they are no older than 1978 and were put on a poured concrete foundation when they were new.  Still looking for someplace that does them as investments, but haven't got it yet.

Being from Utah, I see the numbers you are showing, and I could say "yes, I would love to have 10 just like it." There are 2 thoughts I had that might help you:

1. You say it is only worth $135,000 because it appraised for $135,000. Appraisers are under tight scrutiny to show that they don't over value properties. I have warned all of my clients that the appraiser knows what the purchase price is and they should expect to see an appraisal of $100 over the asking price. That property might have been appraised at $160,100 if you had offered full asking price. Many appraisers have the attitude that a property is worth what a buyer will pay for it, so you are the buy and you set a new value for them. Have your realtor run a CMA to be sure what other properties are actually selling for.

2.  What if you don't do a rent and hold, but sell the property in a lease option or some form of seller financing.  Many people would offer $160,000 to $170,000 to have a place that they can feel is going to be their own someday. You charge a large non-refundable down payment and ask for top dollar.  Rents tend to be more too.  

Very good job and I agree with all of the tips.  What made you pick royal blue?  It looks nice, but it's a bit gutsy.

1. You are right that it is hard to buy here in utah and use the BRRRR method, but a few people are pulling it off. You won't find a deal on the MLS, but some people are pulling it off wholesale. If you can get a property for no more than 65% of ARV, there are ways to get your cash back out quickly.

2.  Totally correct.  3.5% down is all you need for a duplex, triplex or fourplex.

3.  The theory there is good.  I know a lot of people who don't like to invest at a distance, but if you can trust your property management company it is a great strategy.

@Adam Porter