All Forum Posts by: Eric James

How about buying lower value places that you could purchase with cash? There are disadvantages in buying all cash, but I don't think there is any way around the fact that there are advantages as well.

I've been through the 203k process for a SFR, rather than a multi. Yes, the downpayment was based on the total loan (purchase + repairs). The property also has to have an appraised ARV of something like 100% or 110% of the total loan (can't remember exactly)

I just noticed something odd in Buffalo: homes within the city limits having very low property taxes, while those outside the city (e.g. in Cheektowaga) having the higher property taxes common in upstate NY. I have family and friends in upstate NY and the property taxes are really killer. Why are they so much lower within the city?

As suggested above, try another lender. However, the fact that you committed to living in your current residence for a year might be the deal breaker for lenders, rather than the fact that you want to go from a SFT to A fourplex. Perhaps if you could show a reason, such as changing job in another area close to the fourplex, you could more easily get around the 1-year commitment you made.

My current and past employers have 403 (b) retirement plans. I have put a certain percentage of my salary into the plan and they add 128%. The employer contributions became mine permanently after I worked at the jobs for a year. There are several options within the plans, such as mutual funds and money market. I will be old enough to begin withdrawing these funds without penalty in about 8 years. Recently I've wondering if I should withdraw this money, pay the penalty and income tax, and use it as part of my real estate investment capitol. I don't need the money, I just think it likely I could get I higher return than if I leave it in the 403 (b) account. What do you think and why?

What type of rate and terms are common for that type of loan?

You don't have to be the sharpest tool in the shed. Get control of your personal expenses and spending, and find a way to start putting away at least 10% (preferably more) of your gross income. I suggest reading The Millionaire Next Door. There will be people looking to separate you from your money. Just be careful.

@Brian Adams thanks for the info. I too would like to one day purchase multi family apartments and it's valuable to have an idea of where I will need to get too financially to make this happen.

I doubt if what you really want is to house hack. You probably want to make money with real estate, and house hacking is one strategy. You could look for other strategies your spouse could be supportive of.

Wholesaling seems to attract a lot people with dreams of becoming a rich real estate entrepreneur without any money, or taking the time to learn what they are doing. Liens on a property aren't necessarily a deal breaker, but trying to negotiate a sale without the potential buyer (or wholesaler) knowing about them is just a waste of everyone's time, because these will come to light later.