All Forum Posts by: Brandon Morgan

Your offers should be based on what the property is worth to you. Bidding up the price just to win is a sure way to lose.

The market hit a peak last year and people are still throwing cash into investments like the money is burning a hole in their pocket. Everything I see indicates we have not paid the Piper for all that free COVID money and that bill is going to come due. I still expect property prices to drop another 10%, maybe more, before we really normalize. I would hate to pay 5% over asking price in an inflated market, then lose another 5-10% in a correction, and take ten years to recover my equity.

I would bid to where your numbers work the way you want them to

Put in lots of bids and get used to hearing no more than yes - this means you're doing it right

Now for the first one...GETTING STARTED is the main goal I feel. Above almost all else you need to get started. So take a little less of a return on the first if you need to, just to get started. Make sure PITI, PM and all budgeted expenses (repairs/maintenance/CapEx) are covered. Maybe you end up with lower cashflow - ok no problem, you got started. You'll get a feel from the process and be able to go farther from there

@Brandon Morgan The most important part of a 203k, other than qualifying for the loan at the total price, meeting the self sufficiency rule….is picking the right contractor.  Any decent licensed and insured contractor can be approved rather easily.

 And it sounds like your job doesn't allow you to relocate?

Hi Brandon,

I agree with the replies here!

Just to add: as a first-time real estate investor, it's important to carefully consider your options and make a plan that aligns with your goals, risk tolerance, and financial situation.

Here are some things to consider:

-Buying a multi-family property and renting it out can be a good way to generate income and build equity over time, but it can be competitive in some areas and may require a higher initial investment. You may want to consider expanding your search to nearby areas or adjusting your criteria to find properties within your budget.

-Using a 203k loan to fix up a property and flip it can be a viable option, but it can also be risky, especially if you are new to real estate investing. Flipping requires careful planning, management, and financial discipline to ensure that you can cover your costs and make a profit. It's important to do your due diligence, run the numbers, and have a solid plan in place before pursuing this strategy.

-If you do decide to flip a property, it's important to have a backup plan in case the market shifts or you encounter unexpected challenges. One option may be to rent out the property if you are unable to sell it for a profit.

-As for the decision to rent or flip, it ultimately depends on your goals, risk tolerance, and financial situation. Renting can provide steady income and long-term equity, while flipping can generate quick profits but requires more upfront investment and carries more risk.

-When working with a real estate agent, be sure to communicate your goals and concerns clearly and ask questions to ensure that you fully understand the process and options available to you.

Overall, it's important to do your due diligence, run the numbers, and make a plan that aligns with your goals and financial situation. Consider speaking with a financial advisor or real estate attorney to help guide your decision-making process. Good luck with your first investment property!

I hope this helps. Best of luck to you, Brandon!

@Brandon Morgan

Hi Brandon, for someone starting I would highly recommend househacking. That is my first LTR I will do anything with, is just a househack. I am also looking to flip properties now too, but I would personally recommend a Househack. Are there any areas nearby where the properties can be found significantly lower? Or, using a 203k loan is a good strategy for sure too!