All Forum Posts by: Bryan Smith

Wes, 

I think house hacking would be the best way to start real estate investing for your scenario. You will get the most inexpensive financing available if you house hack in your own name and you would also have the smallest up front cost to purchase (possibly no cost if you use a VA or USDA loan). Unless you have a significant amount of assets, I would recommend that initially you put everything in your name and at a later date transition to an LLC as you grow your real estate portfolio. I always recommend seeking out a cpa/accountant and lawyer who specializes in real estate and have them available for any questions that might arise.

Contact your realtor or initiate contact with an established realtor to assist you in your property search.  
This approach will also help you develop or strengthen your relationship with a realtor which is invaluable for real estate investing.  Have an open conversation with the realtor about your goal(s) and I would be honest about what you are looking for.  For example, do not look at an inexpensive property because of the low listing price and that property is located in an urban environment if you prefer not to live in an urban environment.         

In the Reading area, you should be able to find a multi-family property where the rent will cover most of the cost or cover the entire cost of your mortgage.  Congratulations, you just eliminated the majority of your housing expense!  Once that property is stabilized and performing to your expectation, continue on to the next property.

My recommendation is under the assumption you have the ability to acquire traditional financing (stable employment the last 2 years, have funds available for closing cost, good credit, and have a decent debt to income ratio).  If you can not acquire traditional financing, you can still proceed to house hack but will need to look at alternative borrowing strategies.

I hope this helps.  Good luck!
   
     

Any hard money lenders offer 6 month interest only payments and no points? Looking to borrow $100k on an ARV of $150k. I'll refi out in 6 months or less. This would be for a buy and hold property that will be owned by my single member LLC. I will personally guarantee the loan. I have 740+ credit score, ample liquid assets, and have W2 employment. I would prefer recommendations from people who have experience using the lender that is being recommended. Property is located in south central Pennsylvania. Thank you in advance!

@James Yepez This was from 2015.  The realtor pictures from 2015 are still on Zillow.  The address is 1382 W King St.  Basic rehab for the selling price point (slim margin).   The floors turned out really nice.  

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $25,000
Cash invested: $15,000
Sale price: $50,000

5 bedroom, 1 bathroom, 1,872 sq ft house that was purchased in distressed condition. Rehab included all new mechanicals, running duct work to property heat 2 bedrooms to the 3rd floor, complete rehab of bathroom, refinish wood floors, and paint throughout entire house.