All Forum Posts by: Frank Hinck

@Helen Hernandez

I do like others comments of House Hacking a duplex because it will give you first hand LLing experience, you can put down only 3.5 FHA and then when you move on you have 2 units cash flowing. Working for another investor door knocking is a good way to learn neighborhoods, and TTP! talk to people! and learn how to counter objections from sellers.

Take a year, I know it seems long but trust us real estate and “deals” will still be there albeit anything you’re looking at now won’t. Take a year and 1- listen to a BP Show per day, 2-cut your living expenses as much as you can believe it or not you can find $1,500/month by reducing rent & car & cutting luxury expanses and in a year you will have $18,000 - this will suck but it’s an investment!! 3-Network! On BP forums, meetups, REIAs, coffees, find your local experienced operators/NOT paid gurus and see if you can help them find deals, drive for dollars, analyze deals, line up contractors - it’s your unpaid internship to soak up as much experience as you can handle - - best of luck!!

@Adrian Fajardo

I’d push for Owner financing, ask them to consider no broker for the seller if possible. Allow 30 days due diligence check other local rental rates and put together your own proforma. A bank would consider all 3 buildings as 1 loan, but YOU need to make sure each building can financially stand alone - why buy #2 if its a cancer and doesn’t cash flow, it could be dragging down #1 and #3. Check each out for delayed capital improvements (HVAC, roof, asphalt), see if each building has all separately metered utilities.

@Kunal Bhatia

I’d stay out of City of Seattle with the political climate. Issaquah, Redmond, Woodinville are all good but make sure they cash flow beyond Principal, Interest, Tax, Insurance, vacancy, capital expenses, property manager (consider it even if you’re managing yourself). If you can cover all these costs and still cashflow $200 then it makes sense. Find a good Realtor who specializes in finding investors properties.

@Adrian Fajardo

Consider them separately not as 1 for your own evaluation. Run your own numbers not just the proforma they give you. Get a GC or an inspector familiar with multi family. Check if there’s value Add items you can do while there.

Yes commercial banks or community banks do offer Portfolio Loans, ask to talk to a commercial banker.

@Jordan Deeney

In many states you the owner can pull permits except for the licensed trades electric plumbing hvac. Check the city building dept website. The rule of thumb is If Anyone Permits, Everyone Permits. Inspectors get in there look around notice new work and can cause you lots more trouble than you just pulling a permit to start.

@Franchesca Potter

Definitely time to consider your goals: Are you trying to build a rental portfolio, House Hack, own multi family or mobile home park or be a PT or FT flipper? If you have some cash and dad is experienced contractor then completing 2 flips using your own capital + HELOC money would and documenting your whole project from deal analysis for posterity will help when you go out to local lenders or hard money lenders will show you have the experience to be trusted with this money.

@Scott Justynowicz

It’s not going to hurt to try to improve your credit score. Anyone you try to borrow from will pull your credit score, even if you don’t have good credit score they’ll still look at your repayment history and other factors.

@Jason Poquette

Definitely ask the current owner for any and all records they have, which should include all payment receipts so you could probably figure out what days the checks were cashed if you care to look that hard.

@Lee Ripma

Hard Money lenders will not lend on a House Hack, due to Dodd Frank any loan on an owner occupied property is a mortgage. Unless the HML also is a licensed mortgage originator, unlikely. Plus on an HML you still need to put down 20% plus construction costs. HMLs don't usually lend to first time flippers, or BRRRRs without major construction or real estate experience. Besides experience, the property / deal is largely what an HML will look at so it needs to be a smashing deal if you have no experience and little $ down.

@Jerryll Noorden

Stop trolling after my comments trash talking my opinions or I’m going to Report you. This is supposed to be a supportive site for all opinions.