All Forum Posts by: Corby Goade

Ultimately, my goal is to be a full time investor, but I currently have a gvt job with good health insurance benefits and three young kids and a wife. It's not directly related to RE, but I am curious what others who have taken the plunge do for health insurance? Pay insane premiums? Go without? What kind of coverage is out there and, in general, what does it cost? I've called a few brokers and done some basic research and it's not cheap- I'd love to hear from the community here what you've done. Thanks in advance. 

To add even more the the above- if you use delayed financing (cash out in less than six months) it has to be an all-cash purchase at arm's length and you have to be able to document the source of the cash. 

Great topic, looking forward to it!

I think most people here would agree- I wish I would have started out house hacking multis- duplexes or fourplexes. Live in one unit, fix them up, rent them out, buy, rinse and repeat. You get better terms on loans because they are owner occupied at the time of purchase. You are likely to have positive cash flow from day one, and you grow exponentially vs SFH, because you get two, three or four units with each purchase. Plus you can use traditional financing to do this ten times. That means you could have 40 units before you have to borrow private or portfolio money. In my neck of the woods, that could be brining you $32K gross per month for B properties. If you can cashflow $200 per door, that's $8k gross per month. Not too shabby.

I think you need to provide more context to your strategy. Everyone on the board here is estimating FMV and ARV and uses GCs to get estimates, that's not a strategy, it's a necessity to buy any property in any situation. Are you going to flip? Buy and hold? Wholesale? What's your financial situation? Where are you going to invest? Do you have any experience?

Hi Brad, welcome! Good for you in your plan to house hack. I wish I would have started the way you are, I'd be retired by now- read, learn and don't be afraid to act once you understand what you are doing and you will be in great shape in a few years.

If you want to get rid of PMI, you need to find a great deal on a property that needs some work. If you get a great deal, paint, add some new fixtures, landscape, you should be able to get LTV under 80% pretty easily. You might have to pay for a new appraisal, but if you eliminate PMI, it's paid for itself in just a few months.

As for laundry- it sounds like you are talking about two different concepts. One being separate meters for each unit? If you can do that, I'd highly recommend it. It eliminates a lot of cost and potential issues in the long term. As for adding hook ups, it should be relatively inexpensive and might be a good way to attract tenants. However, I would caution you against providing a washer and dryer. I've done this on occasion and without fail, it is a maintenance nightmare. I've never had a tenant tell me that they were grateful that I provided them, but I've sure had them pissed off when they weren't working for a day or two. I don't do that anymore.

If you really want to force appreciation, your return will be much better with simple fixes like I've mentioned above- paint, light and bath fixtures, some new flooring and landscaping go a LONG way in a place that has been neglected for a few years.

Good luck out there!

Condos are tough- usually there is a cap to their appreciation, you own little or no land and have little say in improvements. That said, run the numbers on how much you would walk away with if you sold. I'm guessing after paying a realtor, depreciation recapture, capital gains, etc, it probably won't be much. Could you use that money to put a down payment on another property that would provide significantly better cash flow than what you are getting? Spend some time searching the MLS and run some hypothetical numbers using your cash as a down payment.

From your post, I assume you have 12 years left on your mortgage? If so, it might be a better option to raise rent when you can, as aggressively as you can, and pay that mortgage off asap. Sounds like this isn't the best rental, but it's a great learning experience and you can use it to help inform your next investment. Best of luck!

Sounds like you've found a possible way for some nice cash flow, that's great. Something to consider: land and permanent structures inherently increase in value, but in your scenario, you have neither. At the end of 20 or 30 years, you'll likely have a manufactured home that needs to be hauled off to the dump and have no value. That said, if you are only in it for the cash flow, which is really okay, then I'd explore it a bit further. 

One thought- if you don't have your rommates on formal leases, I'd do that as your future banker who is loaning you money to buy a manufactured home will require those. Good luck!

My best advice is to be sure you aren't sweating the small stuff. The inspector will find problems, probably quite a few of them. If you are handy at all, a lot of them could likely be fixed in a day for a few bucks. If there's a major issue, ask the inspector how it should be remedied, who should do that work and maybe an estimate of the cost. Get a few quotes, read up on the issue and search on YouTube for more information. 

It's great seeing all of this discussion on here related to delayed financing. I've done one and am in the middle of my second. The biggest challenge that I've had is finding an underwriter who either knows the regulations or will listen to reason. Most of the banks I've talked to will only use the purchase price as their valuation and will not accept a new appraisal, which only allows you to get 70% out. You have to get great deals and it will take you A LONG time and many phone calls to either find a bank who will work with you or find a broker/banker/underwriter who is willing to listen to you and understand what you are doing. 

I've been working with a new (to me) broker on my current deal. We've had several calls and emails, and he and his underwriter did not understand the delayed financing regs. They were great about listenting and working with me to get to the point where we are on the same page, now it looks like I'll close in a couple weeks. 

Find great deals, be patient and keep at it until you find someone who gets it. They are out there, but you will have to work to find them.