All Forum Posts by: Darren Budahn

If you buy "right," and have built in equity in each property you buy, then you don't have to worry about over leveraging.  Also, as long as the property's cash flow, you can survive a downturn without being forced to sell when you don't want to. Don't worry about building about a war chest before you buy 1 property.  If you buy solid cash flowing properties with built in equity, you can quickly get the snowball rolling and use the cash flow for future cap-ex.  Also, if you buy right and are able to refinance you can hopefully recycle your funds over and over again.  If you are just starting out I would take a look at house hacking.

Hopefully you can find a lender with no seasoning requirements so you can get your money back and do it all over again. 

Casanova Brooks Do you have enough on the line of credit to buy the house all cash? Then, you could look to refinance based on the ARV after a certain seasoning period. But I wouldn't be looking to do a lot of renovations with a tenant in place. Also, if you can buy all cash you won't have to pay closing costs on the initial purchase and then again on the refinance.

And they will usually want about 1/2 or even a full months rent for every vacancy they fill.

If you have enough cash for down payment and reserves you just need to find a lender who will use the rental income in your favor right away --one without an overlay that prevents you from using the rental income while simultaneously counting the debt against you in their DTI calculation

You could conceivably house hack on a different property every year. You would just need to have enough equity in the FHA bought property to refinance into a conventional loan. Then you could get another FHA loan. You can only have one FHA loan at a time.

@Maximo Hurtado

So it looks like you owe 176k and could sell it for 150-160k. If you do this you are definitely taking a loss. 

Or you could spend 20-30k in renovations  and sell it for 200k. I would want to really make sure my numbers are correct. And, if so, I would take a personal loan or use credit cards for the rehab and try to sell for the maximum amount. This means you take a smaller loss or possibly might break even. 

Another option is to rent it out. Im not sure this condo works as a long term rental but if you think prices are continuing to go up, maybe you can rent it out and break even on a monthly basis, and then wait to sell once values get high enough. 

How much do you currently owe on your mortgage? If you renovated the condo, what is the ARV? Need more information.

If you think there is a high probability of federal government debt reduction I don't think you were looking too closely at the few specifics that the incoming president actually provided. I have no idea if federal funding for housing will go down or not, but I'm not sure how this relates to reducing the federal debt.

Gabe Ledo The lenders are out there. Just keep looking. For instance, I know that MB Financial will lend as low as a 10k purchase price. They lend nationwide. Look up Jerry Padilla on BP