All Forum Posts by: Dominick Johnson

Red flags:

1. The contractor is not licensed

2. He gave you an estimate with a $15k range. If he truly is a well known builder in the area, he should be able to give you a tighter estimate than that.

3. He won't provide a rough cost breakdown. If he is charging a fee for what contractors typically include as part of their free estimate, you can plan on him nickel and diming you on everything else. Without a cost break down, you can bet your cost will end up being at the high end of his estimate.

4. You have no other bids (that you mentioned) to compare it to.

@Ty Ash thanks for the book recommendation, I'll definitely look into it!
Good advice building up your side hustle for 2 years for predictability before making it your full time business.

@Jaron Walling sounds like we have very similar situations. Insurance is way too expensive, but I think we found a solution. We know 3 couples who use a cost sharing insurance company. Their premium is around $400/month and we’ve heard nothing but good things about it. One couple had a c-section delivery and receive a check for 100% of the bill from their policy. 

@Jaron Walling I removed the explanation of my situation just incase the off chance someone I work with sees it.

I agree with you, goals related to owning real estate investments are continually changing for me as well. I see the rental investments as more of a marathon goal of financial independence, where as the job situation I previously mentioned is a sprint goal to time freedom. 

What goals did you set for yourself to achieve before quitting your W2 job? What's your journey to time freedom and financial independence look like?

 I stated the facts...it was not advice. Truth is the chances of a mortgage lender suing someone because they are renting out their house is not very likely, they are more concerned with the loan being paid. As I mentioned though, it is an ethical decision and risk the OP can make.

Typically 1 year. Technically nothing is stopping you from renting it out the day after you close, but that's a personal risk/ethical decision you can make.

Gotcha. I misunderstood your post and thought you were saying that you needed advice on how to make the deal work because you needed $200k as the downpayment. As far as qualifying for the loan, your best bet is to talk to your lender and see what they need from you to get you approved. 

Have you ran the numbers on this? My humble advice is don't do it. $850k is a huge risk for your first investment. I would strongly suggest starting out smaller. SFH that are under $250k are the quickest real estate to sell, so always consider your exit strategy in the beginning before making a purchase.

Well first of all an FHA loan only requires 3.5% down payment if you're living in the house, so your down payment on $850k would only be $29,750.

Shop around with smaller banks and other lending companies. You should be able to find a loan requiring 20-25% down pretty easily. If you have some equity in your primary residence, consider getting a HELOC. Best of luck!