All Forum Posts by: Account Closed

Hi Kyle,

Not sure if you already found space but I know someone who might be able to help you out. DM me if you are interested.

Thanks!

Hi @Kyle Nelson, how did everything go? Did you go through with your offer? I am going through this exact situation right now in California. My lender (also an investor) said i need to get a market rent analysis on the property. He suggested I do a lot of research myself and provide that to the appraiser just as support so he has additional data to go off of, it can only help. I have been looking for months for a good deal and finally found one so I hope I can get the rent numbers to qualify.

Hey Darryl,

Im glad to hear your house hack is going well! I am located in Irvine and plan to buy a small multi family by the end of the year, preferably a triplex or quad. The numbers in Orange County dont seem to work that well so I am looking east to Riverside or San Bernardino areas. I was wondering what your process was to analyze your deal. I have analyzed dozens and none of them seem to work so I am wondering if I am missing something.

Thanks!

Hi Ron,

I am in the Orange County area i just learned about this event today and was wondering what the dress code is. I'm at work and am in jeans, would it be okay to show up in jeans?

@Louise A. That's great advice! Unfortunately, I wasn't able to house hack that unit because all units were occupied and all tenants were on leases. I will keep looking though! 

Thanks for the advice! I will keep looking and doing some more research!

Hi Everyone,

It's been about a year and I am still looking for my first deal. About two weeks ago I thought I found the deal that I have been waiting for only to find out I wasn't doing my math right! This week however, I think I found a property worth looking at, but I have 2 questions:

1) This property is a 4 unit and I plan to house hack using an FHA loan. I reached out to the broker and he put me in contact with his lender. When I spoke to the lender on the phone, he told me something that I had not heard about before. He said 3-4 unit properties are difficult to get an FHA loan approved because FHA requires the rents of the other units to be able to cover the mortgage alone. He said he had never seen one pencil out. I was wondering if this was true? I have done a lot of research on 3-4 unit properties because that is how I plan on starting out and I have not heard of this before. In addition, this property that I am looking at does pencil out where the other 3 units can pay for the mortgage alone (not including utilities, cap ex, repairs, etc.). I was wondering if the lender was trying to discourage me from going this route or if this was really true. Any thoughts?

2) I am located in Orange County, California and it is an expensive market. Like I mentioned above, I want to house hack to get started but I think it is unrealistic for me to expect to live for free in this market (every deal I have analyzed doesn't work out that way). I pay $1630 a month plus utilities. My strategy is to house hack and if I could pay about $400 less in rent and all other expenses (with cap ex, vacancy and repairs included) then I consider it a good deal. Is that a good strategy in this market?

Thanks in advance!

thanks @Louise A.! I want to house hack but I live in an expensive area. I dont think it's realistic to think that I could have my entire mortgage paid by the other tenants so my goal is to house hack and be paying at least $300 less than what I am paying for rent now (with repairs, cap ex, and vacancy included in those numbers). Do you guys think that is a good strategy to get started? @Anna Smith @Andrew Johnson @Joe Homs

@Anna Smith thank you for catching that! i had a spreadsheet and for some reason it didnt catch my PMI calculation. After fixing my formula the deal looks a lot different. Thank you!

@Andrew Johnson thanks Andrew! I think you might be right. I guess I am just desperate to find a deal but I will just have to keep searching

@Joe Homs Yea that part does suck but I am thinking it might be worth it. I have family members that live about 45 minutes away from where I work and I will be able to stay with them a few times a week. Do you think the numbers make sense though? also, if I use the FHA loan, how long do I have to wait before I can rent out the third unit? is it a full year or the majority of the year?

Thanks!