All Forum Posts by: Bennett V.

@Steve B. thank you for the local info! 

I definitely plan to use the FHA option on my second purchase. When you say to do this once every 5 years, would an FHA allow me to move out of the first property which was funded by FHA, refinance after 1 year to free up the FHA then use FHA on the next then repeat? Is that roughly how the time frame can work? How firm is the 1 year rule on those loans?

I feel pretty clear on the rules of FHA expect for time frame (as noted above). Say I purchased a duplex with an FHA on March 1 of 2017. Can I have contractors working on the place before I move in so that they are out by the time I am ready to move out of my current apt when the lease is up (End of May 2017)? Do I need to "intend" on living there and wait out construction/remodeling or do I need to get in ASAP after closing?

@Perry Notarnicola

Using the 1-2% rule has been beneficial just to weed through opportunities but there are a lot of factors.  I am not even close to being an expert on this at all but property tax is one that I look at first off mainly because they can vary greatly in my area, so its interesting to see.  There are a lot of neighborhoods here that are transitioning or are becoming considered "more popular" than they were before so its great to be up to date on the local trends.

For my first purchase, I am not looking to have to make too many upgrades within the first year, so I look for ones that are turn key and hopefully have renters in them.  Looking at the neighboring buildings is a good indication of the type of tenant that will be attracted.  I am looking for clean properties, well kept yard (no student apartments just yet).  

AGain, I am in the early stages.  I find it very helpful to actually run some numbers for fun just to get better at analyzing the investment and get better at making decisions on opportunities.

@Perry Notarnicola

Similar situation here, thanks for the input on the GF issue..Ill work on the approach with her.

College housing has my interest as well.  I am 27 so being that college was not too long ago, the realization of how much landlords can get away with charging for housing is fresh in my mind.  Thus, its an attractive investment.  

I have a lot of friends from school in the Huntington, Mt Sinai areas of long island too.  Tough choice in markets and very different for sure!  Part of my strategy now is just figuring out the best locations to start rentals and its pretty incredible how much a difference a neighborhood can make in the demand/rent/investment cost. 

Good luck in your early stages!

@Elizabeth Schellhammer

Thank you  for taking a look over the plan and for your encouragement.  Hopefully I didnt seem like I was being too quick to dismiss the feelings of my girlfriend!  

I think your point is a great one that my presentation and clarity of my goals need to be more clearly laid out for her.  Ive told her a few times before that her questioning of my goals and plans can be good, to a point.  It makes me truly analyze my plan, the numbers, my strategy in 1-5 years, 5+ years, etc.  Having to explain to her helps me better understand my plan and helps me minimize risk in that same process.  As Einstein said "if you cant explain it simply, you dont understand it well enough".

While the points made by previous posters are valid, it is good to be reminded that the plan that I have can work WITH her as long as I give it the right opportunity and plan.  

I really appreciate your perspective and the encouragement!

@Bill Devola I appreciate it.. I will continue working on the plan and get things ready to go as if it were going to happen in the very near future

@Thomas S. Thank you for the words of advice.  I definitely need to consider all factors in my plan, not just down payments and dollar signs.  I would love to go into this as a team, but if its not truly a team, all parts of it may fall apart.  I should be naive or turn a blind eye to this part of the plan.

Thanks, Greg!

@Bill Devola got her! lol

I do appreciate the honesty though.  Its good to hear it how it is.

@JD Martin

Thank you for the breakdown on point #2.  Of the 2 locations I am looking at now, they are very similar in their current rents, property condition and purchase price so your estimates should hold true to both properties.  I plan to continue working full time until real estate occupies too much of my time, so I will have some personal investment in the future.  No plans on becoming a realtor, however.

@Bill Devola - thats right, I wouldnt be going to those individuals until I was ready to get a loan and had an investment completely verified and ready to go.  I was wondering more, thinking out load, how much does knowing these key people really help me in the long run?  The numbers will be obvious, of course, so how influential are relationships?

@Thomas S.

@Bill Devola, thank you for the input. 

I would finance the 2U rental on a 30 yr mortgage (not FHA or 203K) in order for me to avoid having to occupy the property. It would be great if the lenders are loosening the standards being that I am new to the local lenders. I also know a lot of local bank executives through my current job, but I am not sure exactly how to open a conversation with them about lending possibilities for my personal finance.

I appreciate your insight on my plan.  I am constantly studying my market and thinking of how I can best leverage my investor dollars efficiently to start my investment career thus leveraging my second purchase (my temporary home).  While my plan will need some flexibility, I want to make sure it is as bulletproof as possible so that I do not narrow my options on future deals.

BP,

I am just getting my start in real estate investing with the intention of it becoming my full time career within 3-5 years from now.  My current living situation is living in an apartment with my long time girlfriend which we rent for $1100/month.  I have almost no money to put down on a property but may have an investor willing to put down $15k-20k this summer.  We just renewed our lease until June of 2017.

I had the idea that house hacking may be best for a duplex but my other half is not excited about that option yet (although I am working on that).  In my area I can get a decent duplex for between $100k-$130 which would bring in at least $1450 in total rent from the 2 units .  I could get cash flow running on this property using the investor for a down payment.

After this, my second move would to get an FHA with 203(k) on a SFH within a year from now while I have cash from from the first investment. This would still keep money down on the low end but give us a house that we can remodel and eventually live in. While keeping the first duplex, I would eventually flip the SFH to buy a more permanent home for us. If I was renting the apartment that I am in now, can I do a 203(k) if I have not "officially" moved into the house until construction is complete in it?

I would keep a large portion of money from the flip to invest in the next 2-4 unit rental.

Any ideas on this starting strategy?  It would allow me to use investor money on the rental while keeping my personal investment low on our "first home" and give me the option the flip that house to create more cash for future DP.

Any better ways to use the investor money since a house hack is not a foreseeable future?

Thanks in advance!