All Forum Posts by: Joe Miller

 @Mary Jay 

I love that. Embrace the transition! My parents hit the same this year in their lives. They have eased back, delegated out and are doing what they love. My father is going on fishing trips, my mother is traveling more. They planned a trip to Switzerland where they got married.

I have not seem them this happy and content in my life that I can remember. Embrace it. 

This is silly coming from me but Id talk to several agents about what you are looking for. There is no such thing as having too many boots on the ground. 

Connect with lenders too. I'd talk to several, get pre-approved with several and rate check them against each other. If you apply to them all the same week it makes it SO much easier because you have all of your info together.

Finally, its okay to place low offers. I recently helped a BP client. We placed almost 10 offers before we had one accepted BUT when it was appraised, he walked into 26k in equity off the bat. That is worth putting in 8 offers. 

Investment Info:

Single Family House-Hack, Columbus, OH 

Purchase price: $365,000
Closing Costs : $24,726

Monthly Income: $3,150 + Live for "free"
PITI payment: $2,415 

This is my first solo deal and the most mammoth house-hack I could manage... it is a 6Bed2.5Bath. Go big or go home! It was on the market for 490k, then dropped to 440k, then 390k for a few days then was removed from the market(was cancelled). 

What made you interested in investing in this type of deal?

The biggest was the bedroom count. I networked with people and had 4 of the 5 rooms reserved prior to closing and rented the last one shortly after closing. Four larger rooms at $650 per room and one of the finished attic room for $550 with me in the additional attic room... the smallest, ugliest attic room(which currently does not have AC).

Next biggest, was the neighborhood; there is new condos directly across from the property with two other large condo complexes under construction at the framing phase within 300ft of the front door. It is a great location for appreciation and seems to be being gentrified very quickly. 

Finally, it is close to Columbus State and Columbus College of Art & Design. I hope to continue renting by the bedroom for several years.

How did you find this deal and how did you negotiate it?

Cancelleds from the MLS. Contacted the listing agent, she waived 1/2 of her commission since it was not listed and did not expect the seller to use her when re-listing it.

How did you finance this deal?

Conventional, 5% down. 

Featuring the seller and myself 

P.S. it is not a duplex even though the address presents it as one. It is done as such because when the attic was finished the seller ran separate electric upstairs and then zoned it as a duplex.(I think it hindered him when selling because it caused a weird situation in the lending process) 

@Eldon S. Bailey Kick @ss beard my man. Welcome back! You are doing the right thing being here and reaching out. It seems like you are in a great life spot. 

I would read read read. But, reading takes time and is a place filler and I "read read read" for three years... and tricked myself into thinking I was being productive and never took action. So it is a fine line. 

Feel free to call or text me anytime. Would love to hear your story. 

Brandon, to begin I am by no means an expert but this is my 2 cents: 

Start with your own place first. Do a house hack, see how a transaction functions and progresses and what to expect before gun slinging offers. Lenders are going to want your financials and proof of funds before they even pre-approve you. An offer without a pre-approval is like peeing in the wind trying to stay dry. Its unrealistic most times and a waste of time. 

I would read a sh*t load, eat tuna and PB&J and get a house hack under your belt as soon as possible. It sounds daunting but it really is easier that excepted. I am helping several of my friends(who aren't even 21 yet) get their first properties. It takes frugality but you got it!

Great work man! Total score! Keep us updated on your next one. 

@Carl Dela Cruz

I am going through a house-hack currently. Feel free to phone me and I am happy to help answer questions and pitfalls I have hit personally.

Off the rip my recommendations are how are you receiving funding? Are you alone on the mortgage? If a non-occupant is co-signing that could be an issue for down a low DP making you do 15% down or more. Make sure you are aware of what goes on for the appraisal for the FHA process. That may effect your offers power. Could you save slightly more and do 5% on a conventional? Remember you have to have extra for closing costs. For my house hack my DP "should be" $18,250 but cash to close I need $23,650. Make sure you account for that. Don't mean to info dump on you but these are things that I never thought of before I actually did it for myself.

@Diamonn Hymes

I am currently house hacking! It is a great way to live for free and maybe even make a little. That is awesome that you are able to use a VA loan, thank you for your service.

First Ohio Home Finance is bomb and who I am using personally on mine. 

Definitely have all your ducks in a row! Congratulations on this next step. Multi Family Millionaire is a great book. 10/10 recommend reading if this is your interest. 

Shop around. Don't take the first Loan Estimate you get. 

I got my first estimate with my rate at 6.6%, after calling many lenders I got it to 6.125% with potential to buy down a little.