All Forum Posts by: Joshua Eugene

@Eric Nelson did you have to purchase a single family home vs MFH? I'm in the same boat you were in and so far 5% down SFH is my only option. 25% down for MFH.

Thanks,

I'm still getting my feet wet but yes if it was 3 1/2% down. It will take me around 2 years to get all my cash back, which is great but if I had to use a lot more of my cash then I wouldn't do it. I'm in a much better place then I was before as my expenses was cut in half and I'm not throwing away money in rent, but I do want to scale up. 

My next move in a year will be buying my fiancé parents two duplexes using gift appreciation (unless they change their mind in a year, which is possible) or a live in flip. I want to focus on a large sum of capital (or credit) as tax friendly as possible so I can scale quicker. 

Thanks! That and the low flood and insurance cost gave me the push to go for it (my insurance cost was cut in half cause because of it being a new construction). Even thought the equity isn't there, I'm pretty happy with the savings/cash flow and the low risk start out to get my feet wet. I'm not sure if I'll hold this one after five years though. 

There were 5 recent rent comps in my immediate area between 1350 and 1500 for 2br 2 bath; however, all were high end finishes or a lot of space. I did my numbers at 1200 to be conservative and marketed it on FaceBook for 1350 which is what I got. I do agree that the medium is around 1100.   

It's in the 70122, Gentilly area. It's actually a new construction so not much room for touch ups at all but the rents in the area are as high as $1,400 for a similar 2 br.  

Investment Info:

Small multi-family (2-4 units) buy & hold investment in New Orleans.

Purchase price: $284,000
Cash invested: $12,922

Right now I live on one side for $430 a month. Very safe and nice area with mainly homeowners around me. Once I move, this will cash flow around 600, 300 a door.

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

I wanted to stop renting and start out with house hacking.

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

MLS. Had a to bid $3,000 over asking; however, I really wanted a safe area for my family and loved this area. A decent amount of cash flow was here also.

How did you finance this deal?

FHA loan.

How did you add value to the deal?

To me, the extremely low amount of cash made this deal great for me. Just getting my feet wet. I have enough cash reserves for most situation or to do it again in a year. My overall expensive were lowered while becoming a home owner.

What was the outcome?

Going well so far. I have a tenant paying my projected amount so no issues so far.

Lessons learned? Challenges?

Hot market was a major challenge and I was not able to get any equity. I need to find an off market deal.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I found him on here and he had great reviews on redfin. His name is Michael Cinquemano.

Sorry, I'm just seeing this. Thank you so much and I see you in the forums all the time. I'm having a really hard time competing with cash buyers in this hot market/New Orleans with multi-family properties (turn-key) that hit good numbers or any single flip opportunities to use a 203k loan with FHA. It's almost to the point that I might have to settle on something not as attractive.

Would you have any suggestions? Also, do you have any whole seller connections that may work with an noncash buyer?

Regardless, thank you for your contractor contact. I will definitely reach out when I'm looking for bids.   

Hello,

I'm looking for a licensed contractor in New Orleans that is willing to do a FHA 203k. If anyone had a good experience with the process in New Orleans, please let me know.

Thanks!

@Gilbert Jagot

Same. I’ve visited a few places, gotten pre-approved, and doing numbers on properties daily. If you guys set something up online I would love to participate!

I'm new and looking for my first multi-property in New Orleans also. I think your doing the numbers correct as if you wasn't living there; however, the more cash flow the less out of your own pockets and saving (for your next one). I was told to focus on cash flow in good areas. Good luck!