All Forum Posts by: Edgar Rodriguez

@Carl Talley please share it with me. I would love to take a look at it. 

@Luis Pereiro That is a better area. I would try to haggle a little with the lady and start at 100k and I would have an MAO of around 130. That would give you some equity after renovations.

Hey Luis, 

Could you share the location of the deal as well as the total square footage?

Based on raw numbers(based off 150k loan), it looks like you're at or close to break-even accounting for vacancy and repairs with you occupying one unit. You'll essentially be living for free. After you move you will be cash flowing somewhere  around $700 per month. 

Depending on what your goal is, you could probably pay somewhere around 130 or so (with 45k in repairs) and cash flow between 400-500 per month after you move out, which would be a really good CoC return. Accounting for management, which you always want to factor in even if you self manage, you will be at around 300 a month or 3600 a year which is still solid for a $12,000 dollar investment if you factor in your closing costs.

I think this really depends on you and your goals and also the area. Is the area attractive to renters? Does this area have the kind of tenants you want to deal with? If the house is in Sulphur Springs, you can't really bank on appreciation. You always want to have multiple exit strategies.  

@Randy Stout You are correct. I honestly do not know what the rules and limitations are in your area but I would suggest contacting or going to the website of the department of housing in your state or county. You could also talk to an experienced mortgage broker and they will know any, if they exist, programs that may work for your situation. It could be something with a possible 1% down loan or things like that. It never hurts to ask. 

If you have 30% equity in your home and are willing to rent your current home as soon as your new home closes or a little before, most lenders will use that income to cover the mortgage on the first home therefore lowering your DTI again.

I would look into possible down payment assistance programs in your area that would allow you to put a very low amount of your own money down.

This would allow you to purchase a property while simultaneously allowing you to pay down your student loans. 

If this is not an option, I would definitely house hack as everyone else has stated. Hope this helps! 

Hey BP!

I am looking into a possible deal for some vacant land in Carrollwood/Egypt Lake area. I was wondering if anyone had any builders that they worked with before and what their cost to build was for some six plex townhomes? It would be awesome to at least get some baseline price per square foot numbers when I start contacting individual builders. 

Hey @Jennifer Trombetta ,

I work in the Southshore area in Hillsborough county ( Brandon, Riverview, Apollo Beach, Wimauma, Ruskin). Please let me know if you need any help in finding properties or just general advice about analyzing a deal in this market.

Thanks!

From a seller's perspective, conventional loans have more restrictive debt to income ratio as well as credit score requirements so that means that the buyer is more qualified for the loan. Also, most conventional loans require at least 5% down versus FHA is 3.5% down requirement.

In multiple offer scenarios, most experienced RE agents would advise their sellers to throw out any FHA, 203k, or VA offers because they are not as strong and take longer to close then conventional or cash. Most sellers would rather sell their house for a little less if it is more of a sure thing.

To combat this, I would recommend possibly partnering up with someone that has the financial means to purchase with cash or more money down or to offer special provisions such as possibly a free leaseback, large earnest money deposit, etc.  You have to be able to stand out in a competitive market.

Hope this helps!

I would suggest making an offer at the price you think it is worth. You do not want to overpay for a property ever. 

If you have anything that you are not interested in or don't have time for, please PM me.