All Forum Posts by: Daniel Kong

Come to Hawaii!! For quality of life, Hawaii is a great place to live. For the cost of living and saving, it's terrible though. 

I'd suggest Indianapolis personally. Lots of opportunities to house hack with great average price to rent ratios. And you get a bustling up and coming city with lots of sports, bars, and things to do and see. 

@Terevarevahaunui Jacobson Since HELOCs are a bank-specific product, every bank has its own criteria for what they will or won't allow. 

I know for Fannie/Freddie the lease must be for at least 5 years more than the requested mortgage. So a 30-year loan will need the lease to be for at least 35 years, a 15-year loan will need a lease for at least 20 years, etc. Of course, banks can overlay their own stricter requirements. 

You really would have to ask bank to bank, but my guess would be that if the lease is long enough, the bank would consider offering a HELOC on it.

Hey Tyler, I just took a look at the property you posted. This is something a lot of people who are not from Hawaii are not familiar with, but the reason why a lot of properties are "cheap", (and yours in particular) is because they are Leasehold. This means that you don't own the land under the condo, and you have to pay a monthly fee to "lease" the land. This is in addition to your property taxes, insurance and HOA. On top of that, when the lease runs out, the lease owners get back the house and you own nothing. So its almost like a depreciating asset. The closer it gets to the end of the lease, the less the property is worth, unlike most properties which appreciate over time. Just something to research more on your own and look into. Either way, good luck!

Love the creativity! Just remember to calculate in closing costs (2k), hard money points and interest (2 points and 10% over 6 months is 11k), holding costs (prop tax, insurance, utils, HOA), and also the refinance lending costs (gonna be around 5k most likely). At the end, how long do you think before the balloon kicks in? If its a year, then you would be short if you owe the seller 110, but only had 50k cash left over (minus any of the expenses above). Also, will the property cashflow after?

Seems like a lot of potential, just need to make sure you run your numbers well. Either way, good luck!!

I see them all the time. But they are usually in neighborhoods that are not so nice. So basically, even tho it hits the 2% rule, its not something that I'd buy. DM me and I'll forward you the next one I see. 

Yes, you can do that

If you can buy something that cashflows for like 3.5% down, I'd definitely go that route. Its almost like a built in BRRRR. If you can find a small multifamily 2-4 units, or maybe a single family that you can househack, then you could theoretically live rent free or even get paid to live there. And with interest rates at historic lows, its such a great time to lock in a 30 year mortgage. If your property value jumps up in the next 5 years, you can sell it tax free (assuming it went up by less than $250,000).

Short story is, as long as you purchase something that cashflows or comes close to cashflowing, then I'd recommend buying. Either way, great job saving, and you got a bright future ahead!! :)

Lol, what @Wayne Brooks said. Its not impossible to do what you are suggesting, but just very unlikely and difficult. When you are the buyer, you usually provide the contract. So you can send over your contract to the agent. However, most states have a State standard contract that all realtors in that state use, so the seller's agent will probably expect you to use that. 

Welcome to BP Ryan! This is a great place to meet people and connect. Where are you from? 

Best advice is to just analyze a lot of deals. You want to look at it from the view of the fix and flipper. What will he need to buy it at in order for him to make a profit. Then work backwords from there. (Subtract your wholesale fee). Once you start analyzing a ton of deals, when one pops up, or an opportunity to lock up a property under contract comes up, you will be able to recognize it. Unless you are constantly analyzing deals, it will be hard to recognize what a good deal looks like, or even be aware that a good deal is available.