All Forum Posts by: Jose Batista Abikarram

Inspection is a contingency so you can only do it when the seller agrees to a contract. Is kind of like a fail safe mechanism that protects you in case the inspector finds out about a repair that will be much higher than what its worth. So once you have a contract ready with a lawyer and include contingency, then you can talk to the seller to schedule an inspection

Hey Chris, this is what I call opportunistic thinking. Many people would see this as a hassle but you are seeing the positive and how to make it work not only for you but also for your family. If the house does need a lot of work HML is probably your only bet since conventional loans might not be as willing to invest in a fixer upper. I would try to apply though to compare advantages and disadvantages.

One thing I would suggest is to look at the zoning laws and permits needed to do this transformation. Many places in the US don’t even allow multi family where there is a single family. 

Best of luck to you!

The pro calculators let you save the data and come back to it anytime you want. They are very useful. In terms of transfer I don't think you can do that but filling them up is not so hard and should be pretty easy to compare a BRRRR vs a rental property.

For multi units you should be targeting about $100 per unit and just take into account that cash flow is not everything so look at how to balance ROI with cash flow.

One thing to consider is appraisal in your area. Make sure you rehab to what an appraisal would consider worth it. Some areas adding sq ft is what matters 

Hey @Eric Piccione, as @Gina DiMasi says air B and B will pay more than a ltr in most cases. If you want to use real numbers you can try using one this BP calculator to see how much more you could potentially get from doing a STR. https://www.biggerpockets.com/...

Also remember that getting into air B and B will be more expensive than an LTR because you have to furnish the whole place and treat it as a hotel.  So it really depends how much work you want to put in it and if you want to increase the time you have into responding to guest and solving their problems  

Conventional loans are not nearly as picky as FHA loan so you might be able to make it work. Just make sure that when you are analyzing the deal you have to pay some of the closing costs twice. This is because you lose both with the first loan and with the rehab. As a safe assumption I would take the closing cost X2 and see if the numbers still work. If so go ahead! Good luck hunting

It is a great strategy to begin in real estate. The first reason is that it is relatively easy to begin with (needs capital but not a ton) and gives you practice. If you know anything about the human brain is that repetition makes us good at activities. This strategy uses leverage (risk of increasing or incurring high amounts of debt) to get you more properties. However, as @Andrew Syrios mentions for all good deals the debt will be considered a "good" one. If you are still worried about debt what you could do is start with BRRRR, get 4-5 properties and then do some kind of rental snowball plan and transition to strategies with lower risks.

One of my previous landlord did something very similar to this. He had a studio apartment that was very small but in a great location and a fairly good price. He actually didn't charge a fee for the month by month rule but there was a clause in the lease that I needed to give him a month ahead before moving out. This gave him time to find another tenant. In some states you may be able to hold security deposit if they end the lease sooner. Your idea sounds good but just wanted to add some other things I have seen

I would recommend to look at more than cashflow when doing a deal. Remember to always think in 3D @Zach Shahan. An FHA loan may give you MPI which is slightly different than PMI. However since you are putting so little capital your ROI can be bigger even if you are losing a few hundreds in the insurance. Especially since you can Refinance a few years later when 20% is payed and go with a conventional

To your equity question I’ll go with the dictionary definition. “Equity is the difference between the market value of your home and the amount you owe the lender who holds the mortgage”. In your case 140k (assuming the appraisal did say that) - 80K of Liana = 60K

Hi Kevin, this is a great start and I like all the ideas. One of the good advantages you have is that you already have a business and one that brings you many people all from different backgrounds. So start thinking how you can use the skills of chef entrepreneur and apply it to RE. I am an industrial engineer and is a lot easier for me to understand RE concepts if I relate them to what I already know which is improving systems and negotiating with people for win-win situations. 

Good luck!

The suggestions are great. I wished I knew what I know now about FI in college. One of my favorite books is Your money or your life, which teaches you a lot about frugality but more importantly understanding where is your “enough” point. For podcast I recommend coach carson and how to money! Good luck and keep at it!