All Forum Posts by: Dylan H.

@Ariel White

Sorry forgot to say as well the loan you are thinking of for a live and flip (rehab your primary residence) is called a 203k loan. Keep in mind they are notoriously very difficult loans to work through, but if you want it bad enough it is definitely a great option.

@Ariel White

Buying a primary residence will count against your DTI (Debt to income), which will in turn affect your purchasing power on future investments if you plan on using traditional financing. You could always try and buy a small multi family property to house hack which would be a great way to get some land lording experience and start building equity.

Once you declare rental income on your tax returns (for typically 2 years) then banks will count 70% of that towards your DTI which will allow you to buy more investment properties.

@Rachel Kim

I think the only thing that has to be understood here is your Debt to Income(DTI) ratio and the fact that once you have 2 years of rental income on your tax returns the banks will count that rental income (70% of gross rents) towards your DTI. When you want to buy a new investment property, you will also get an appraised rent value, and they'll count that amount (at 70%) towards your DTI to qualify you for the additional debt you are taking on.

@Anthony Trumbull I would recommend doing separate leases for each room while you're there. My renter is a friend of mine and started school / checked in the same I did, so I didn't even do a lease. Obviously once I move I'll do leases, but I plan on listing the whole house as of now, instead of by the room. 3/2's are good for sure, that's what mine is. I wouldn't worry about cashflow while you're living there and house hacking, the real goal is to substantially reduce your housing expenses while allowing you to acquire a future rental property. There are a lot of people that do by-the-room rentals, but I'm not sure if I want to deal with all of the extra moving parts/drama that requires.

Hey @Anthony Trumbull, I used the VA loan (at 0% down) to purchase a house hack outside of the back gate of NASP. I'm still down here, so I'm not quite sure on the part about asking a property manager to look specifically for short term military tenants, but I'm not sure that would work very well. If you have access to the FB SNA housing swap page, that's a pretty easy place to market your property as it is coming available. But, I will say there are a lot of people that have done the same thing, so quality and location are going to be important for competition. I'd also recommend some easily set up systems and self-managing for as long as you can as well after you move.

Duplexes are also pretty hard to find here in Pensacola IMO. I looked for a multifamily property to househack, but didn't have much luck, specifically in a decent/safe area and a decent property. 

As far as average rent goes that's pretty dependent on your location in Pensacola and whether you are renting furnished, fully furnished, etc. The fully furnished option is obviously extremely attractive to short term flight students. Also, BAH rates were recently bumped up for Pcola as of Jan 1st, which means people can afford a little higher rents. I think a good value for a fully furnished house within 10 minutes of base is $600-700/room.(especially with BAH for an 0-1 being $1400+/month so their still getting a good deal per person at that price) So a 3 bedroom fully furnished house would be $1800-2100/month depending on location, quality, etc. 

@Phillip Rosin

I think with your average debt being paid down at 5% you’re pretty safe and have excellent financials. That $2000/month in cash flow should be pretty easily attainable with your $100k+ cash position if you leverage it well. I would think depending on what market you’re in and the quality of property’s/types you prefer that cash flow could be achieved by one smaller commercial multi family property. Would see if you could find a seller willing to carry 20%, commercial bank finances 70% and you put 10% down.

Best of luck!

@Blake Edwards

Bare minimum employer match. The rest of my aggressive savings go into a high yield savings account to then be placed back into income producing real estate.

My thought is that if I buy at a discount, it produces income and cash flow, why would I really diversify or delay income for 59 1/2? For those of us that are aggressively pursuing FIRE I believe it’s the best method.

Happy New Year @Stephen Jones! Looks like a great deal from the numbers you provided. Best of luck with it.

@Carol D.

Awesome! Love it, thanks for sharing

Hey @Joseph Nance, looks like a great deal! Congratulations! I will PM for some info on your lenders, thanks for the post.