All Forum Posts by: Cory Shea

@Dan M.

Thanks for taking the time to look it over, Dan! 

When I spoke to my Credit Union they did tell me that for one, they wouldn't be able to do a traditional mortgage since the property was only 30K, but second that it wasn't livable. I had then asked, if I would be able to use a personal loan to secure the property. To my surprise they said yes. I haven't completed the loan application process yet with them, but I've had many loans through them before and have a pretty good relationship with them. 

In regards to the 4% vacancy, I wasn't sure how much to realistically save up each month and I had just entered in that number. Now on the property management, I've been listening to David Greenes book Out of State Real Estate Investing and he had mentioned he on average pays his property managers 7%. So I just stuck with that metric. 

I definitely wan't to make sure my expenses are as realistic as possible. I know that my first property isn't likely to be a home run deal, but as long as I can make it a decent one that doesn't end with me loosing the property or being stuck, I'll count that as a win. 

Thanks, again! 

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Hello BP! 

I am a new out of state investor looking at getting into my first BRRRR. I came across this property in Iowa. It's a duplex unit and the other side has already been remodeled by another investor and is currently listed for sale at $159,000. The side I am looking at is listed at $29,900. The report I generated is based off them accepting a $25K offer. I'd like to keep purchase price and rehab under 100K all together so I am planning a rehab of around 70K. I am hoping for some advice on things I may be missing from my thought process.

I've already spoken to my local credit union here in SoCal and would be putting 15% down on the initial purchase price of the home. I know that I would also need to qualify for a construction loan to rehab the property. I'm not sure if I should just see about qualifying for a much larger loan up front that would cover purchase price and rehab costs or if I would need to qualify the two loans separately. 

I am open to any advice or constructive criticism. With the proof of the other side being completely renovated, it seems like that would be the best comp to have as a reference for what is possible with the unit I am looking at, and it looks to me like it should be a good investment. But having a set of more experienced eyes on it would be appreciated. 

Hopefully this all makes sense and I'm not just rambling on and on. Lol

Thank you again!

Side note: I have spoken to an agent that is also an Investor in the same area and he seems like it would be a good choice to go through him. But I've also wondered if approaching the listing agent and having her represent me as well as the seller might be helpful in getting them to accept a lower offer? Just a thought I've had. 

The investor has told me that if the whole property was rented to a single family he was looking at $3,500. I have a meeting scheduled for this Sunday with the investor to discuss possibly renting and or managing the property. So we shall see how that goes! I appreciate the advice! 

I realize this isn't really a true house hacking situation but to make a long story shorter, my Wife works for a Medical Spa and the owner is now acquiring his first Duplex. As my Wife and I are currently learning all we can and saving to eventually buy our own multifamily to house hack, this in the meantime could present me with an opportunity to cut our rent back even if just a little. The investor is an incredibly busy guy and I know he does not really want to be bothered by getting calls regarding a broken light bulb or a wash/dryer that is not working.

My thought is that since I am already wanting to learn the in’s and outs of property management and really involving myself in real life experience, perhaps if I offered to take care of the whole property for him in terms of dealing with the downstairs tenants, scheduling repairs/maintenance, and keeping up the properties landscaping so that the investor can remain more hands off he might be willing to give us a break on the rent so that we can save even just a little bit extra each month.

To give you an idea of the situation, he initially told me that he wanted to rent the whole home to a single family as he does not want to deal with issues of tenants not getting along. IF he were to rent separately, the upstairs studio would be listed for $1,400 a month and the downstairs 2BD 1 Bath would be listed for $2,100. Now my Wife and I are just up the street in a 2BD 1 Bath apartment paying $1,250 a month. It would make no sense for us to downsize to a studio AND pay $150 more. I am hoping someone has some advice as to a situation I might be able to pitch to the investor in which this would be worthwhile for both of us. Thought I am wanting to cut our rent back a bit, I know that the lessons and experience I might gain would be worth much more. Any advice is MUCH appreciated!

@Evan Polaski Yeah, I suppose those are all things that I need to be considering. Thanks for shedding some light and bring a new perspective I haven't thought of yet!

@Bradley Dosch Thanks for the info, Bradley! That's pretty interesting. I haven't heard of Bank of Americas down payment assistance program yet. I'll have to check into that. 

@Brandon Rush Thank you for your reply! You've defiantly made some good points. I'll look into connecting with a lender so I can find out what would be required to get that FHA loan. Then I should at least be able to have a goal set in my mind. Theres no doubt I am eager to begin house hacking but I want to do it in a smart and calculated way. Thank you again, Brandon, for the advice and encouragement!

My wife and I are currently living in an apartment 5 minutes from downtown Redlands, CA. We are looking to purchase a Multifamily (preferably close by) to use as a house hack within the next 3-6 months. Then put away the money we save from not paying rent into a savings fund for our next deal. Thing is, we don't have anything saved up and I am wondering if anyone has some advice on how we can get the down payment covered as well. I'd like to use either an FHA or 203 K loan.

I'm open to any constructive criticism or comments you have on this subject. I'm brand new to the world of real estate investing. But I'm excited to learn and grow along the way! 

@Tyler Hungerford Yes, I have seen the triplex on Linda! I haven't seen the duplex on Buena Vista however. I would love to connect with you! I'll message you. 

@Elijah Householder I’ve never lived in Riverside, but I have been living in Redlands for the past 3 years and I absolutely love it. I myself am looking to buy my first Multi family rental property to start my investing career. Redlands does have a bit of a growing homeless problem. But overall Redlands is a beautiful and safe city to live in.