All Forum Posts by: JooYung Choi

Hey Fernando!

Some questions to consider to help determine the best lender for your situation:

What's the loan term length & down payment needed? - 9 months at 12% is different from 12 months at 12%!

 How many months do you expect you'd need to complete the project? -if you can do it quickly, maybe the one with higher interest / no origination fee? Gotta do the math!

Can you extend the loan term if needed?

What's the draw process / fees and how quickly will you have access to the funds? 

Dutch or Non-Dutch Interest? 

Definitely read all their reviews, see how they communicate and look into the company's reputation. 

Hope this helps!

I don't think it's worth it because it looks like there is not enough meat on the bones. What would be your renovation cost for a full gut on this deal? 

Personally, I wouldn't want to deal with the headaches of renting it out in a neighborhood like this. Not to mention higher vacancy & capex you would need to account for. For $800? I'd pass. 

Definitely get a pre approval! You can even go one step further and get a commitment letter. This would require a hard pull on your credit but helps make your offer stand out amongst the pre approvals of your competition.  

That sounds like a win to me. You seem like you know the local market pretty well so if you can get higher rents for that property it's a win. I would look into cohosting or have some agreement on how you'd be compensated. 

For example, since property is currently rented out for $1000.

If you are able to rent it out for $2000, and you take 20% of the gross income, that would mean $400 for you and $1600 for your family member. WIN WIN

Now with that being said, long term property management companies usually charge around 7-10% of gross rents. Depending on the services you are able to provide, you can justify charging a higher rate if it means more money in the homeowner's pocket!

Hey Andy, love the hustle! 22 and you are already making moves! 

I am assuming that you will not be selling your current home. What are market rents for your current house hack if you were to rent it out whole? Will 75% of it cover the PITI?

You should do a DTI calculation so you know exactly how much you can allot to your housing payment. Then it's the purchase price of your next home (and the associated PITI) that will determine what % down you can pay.

Love to chat more about real estate.. let's connect!

Hi Michelle, what are your investing goals? Are you looking for cash flow or appreciation? I personally do a mixture of both; investing in NJ (more expensive but higher appreciation) and investing out of state (more cash flow but less appreciation). Cash flow is nice and all but I am realizing that true wealth is built in equity! I'd say the trick is to find the property that will do both and hold!!

Bumping this post! 

I am also looking for some MTR lease guidance in Philly. 

Could be a combination of different factors. 

What does the house that sold nearby have that yours don't? 

Maybe your agent didn't do a good job marketing the property in the proper channels? You could consider another agent. 

Have you considered renting it out and holding the property for now? Interest rates are cooling (lower monthly payment) and you should be able to pull out at least 75% of ~650K since you say a similar home sold in the area (direct comp). 

Not familiar with STR regulations in your area, but you could dive into the hospitality space as well!

Good luck!

Definitely agree with the posts above. Househacking is the best way to get started in Real Estate. Can't imagine a better deal than paying little to none for rent and building equity at the same time. Just live in the property for minimum 1 to recommended 2 years (while renting out bedrooms / units) and you'll know first hand how powerful real estate investing can be!

Hey Mike, 

As you already know, cash flow in NJ is hard to come by. Doesn't mean it's not out there. I personally have found success midterm renting in Morris County. More work for more reward. 

Let's connect!