All Forum Posts by: Jason Polykoff

@Whitney Hutten Thanks Whitney! I’m not sure an extra tenant will be able to put up with my wife and two little boys! I wouldn’t put that craziness on anyone.

Is the cash out refi part of the “flip and live” strategy?

@Brian Gerlach thank you!

OK OK, I know that if you live in the property it technically wouldn't be a traditional BRRRR in the way that we know It. It'd be more of a:

Buy

Rehab

Reside (in it)

Refi

Repeat

I watched a YouTube video of someone who explained that he did this using FHA and 203k loans. He fixed up a house at $350 all in, had it reappraised for $550, and was able to refi at 80%. In the end he made out with $100k after only putting in $10.5k, and lived in the home with his GF.

Has anyone else ever done this? Obviously things had to go right for this guy (the market worked in his favor), but even if it didn't, if you work it right (the FHA and 203k loans at clutch), you could end up in a very nice place for very little down and no PMI. Thoughts?

@Owen Dashner Thanks Owen. I understand the 50% rule, and that it’s basically a rule of thumb and not hard fast. My questions is, if I k ow the insurance and tax numbers, approx how much should I assume the remaining out of pocket expenses will be each month?

Here's the scenario: My current primary housing PITI mortgage is $1470/mo. I'm looking to purchase a new primary home for my family and turn this home into a rental property. I'm not totally sure of the rental comps in the area yet, but even still, I'm trying to get a rough estimate of how much I should assume costs will be per month after the $1470 mortgage payment taking vacancy, repairs, etc into account. I didn't know if there was another "rule of thumb" estimate if you know the insurance and taxes per month expenses already.

Thanks!

Hi BP, quick question... if you know the PITI of a property, how should you adjust the 50% rule to account for vacancy, maintenance, etc.? Would it be more like the 25% rule at that point? Thanks!

@Randall Alan great advice, thank you Randall!

@Moises R Cosme Thanks Moises! I'm skeptical of the MLS pages, but going through an agent makes sense. I was hoping there was a specific site that most people trusted. But, sounds like the agent path is the most reliable.

@Charlie Anne Will do Charlie! Looks like we’ll be going through this journey together. I’m wondering how many real estate rookies there are in Philly and how we can start group to help each other.

Zach, you're not kidding about the property taxes! My wife and I bought our first house in Indiana, where I just paid my taxes out of pocket twice a year because they were so low. Now, we have half the house and 3x the taxes. Thanks for the advice about reverse engineering. Would you say the 50% rule still applies to Delaware County, given that the taxes are so high? Or should I consider it more of a 55-60% rule?

Thanks again!

Justin, this is great! Thanks for the advice. I'm going to try and find a local meetup and meet some more investors for sure. Did you have to rehab your first property? What does your portfolio look like today?

Thanks again for reaching out!