All Forum Posts by: Jeremie Torres

What am I about to get myself into? 

Not trying to cut corners here but after a ton of research, I've seen them pull deals the way it's advertised. I've attended their workshop a few weeks ago and today I finally got to talk to a counselor. I had questions about how it works when they lend for a property. Definitely a lot of paperwork and a lot of hoops to go through. Though, I found out that they allow you to purchase a multiunit property from a duplex to a max of a fourplex. They also want you to live in at least one of the units for the duration of the time NACA is the mortgage lender. Then I ask what if I wanna get outta there after 3 years?

A couple of ways out of it: 

1. Refinance out of the NACA mortgage (Counselor said that they will probably give me a hard time about that.) Or

2. Sell the house (Which they will also give me a hard time since they go above and beyond for me with minimal cost initially.)

It sounds like going for either option they will give me a hard time about it. The counselor stated that they specially cater to regular consumers and not so much about investors and I get it. They would rather honor the mortgage to someone/family who is looking to stay for years and not have an investment goal with it. 

Has anybody been through with them? Pros and cons? Worth it? I'd like to hear about your experience. Thanks in advance.

I watched an experienced investor... After he BRRRRed the house, he did have a place/hole to put a dishwasher in but he decided not to install one. Mainly cos of the various stories of issues having one for the tenant. 

But the hole is available for whenever he decides to place one in whether if he feels the tenant will take care of it or even when he decides to sell it. 

Might be something to consider for you as well.

I’m walking around my neighborhood this morning - Mt. Vernon- and I see these signs on a few doors already about filling up their rentals. I don’t want to advertise it here since I’m not sure if that’s allowed. But PM me and I have a pic and info for you. Might be worth a call.

Some really good problems you have there man. 15 prospects already in just 24 hours, good going already. Now just think about all of these pressure you're facing... is it really worth to save $150-200/month cos you wanna self manage your rental? A really good PM may just alleviate most of your concerns. I say most cos you still have to manage your PM and making sure they're working for you on your best interest. So, if you're getting a PM, just make sure you screen them very well. I don't have a PM to recommend to you but I can't imagine being under pressure on my first rental just cos I wanna save $200 and possibly put the wrong tenant in there. Leverage your PM about how to manage a property while you're paying them cos here's the thing, you don't have to hire them for your next rental. Maybe after you get the hand of your first rental along with your PM -if you choose to go that route- then you'll be well equipped to handle your next one. Best of luck to you, man. Rooting for ya. 

Hey @Seth Hochberg I'm a newbie as well and I can't agree more with @Ozzy Sirimsi's take about how the price range for 100k properties is starting to get really saturated. Both me and you looks to have the same plan for 2021, targeting the same price range, same type of property, same strategy etc etc. And just like you I'm also preparing really hard for next year: saving, learning. We won't know how the market is gonna turn in Bmore but I know there'll be deals to be had just a matter of finding them first. That's probably where direct mailing comes in. If it's in public listings, it's gonna to be a race against time and a challenge to offer against others. However, there is one area that I don't see a lot of people are talking about and I've driven all over that area (I drive for UberEats) and they are nice. Looking into apps they look to be very affordable. Lol don't mean to make a suspense but you're more than welcome to PM me about it. I just don't wanna be liable if someone were to decide on my words. 

From one Jeremie to another @Jeremy Anan It's easier said for me than done but if I were in this situation I would probably explore the cash for keys route if you can still somehow communicate with him. @Ozzy Sirimsi is right. You could be losing more $ till Feb of next year, even longer. Just imagine how many eviction cases is on the docket that needs to be heard in the 1st qtr. of next year. Try your best to get possession of your property back asap. Good luck man. If there's something you think I can help you with, don't hesitate to reach out.

I'm only at my learning/saving phase on this and even I would even look elsewhere as well. Probably shop around for at least 2 more lenders if not more. Part of due diligence, right. By my calculation 12400 to 129900 is 9.5%. Last I check is that the average closing cost in Bmore city is about 3.5%. Would not hurt to shop for more lenders. 

@Stephen Predmore that’s good to know you can do that. When you say 1 year, does that mean you can not touch it til after 1 year? Say, the tenant only lasted 6 mos and you have to give some/all the deposit back will you be able to get the money out even before that 1 year? And what if the 1st year has passed, can you leave it in there or you have to extend it for another year/x amount of time, or are you obligated to move it somewhere else?

Thanks much!

@Matthew Novelli I have not tried the BP calc for BRRRR but I may look into that. This software I'm using is something I got from the App Store called DealCheck. First one I've used so far and I bet there are many more out there. I'll have to give the BP BRRRR calc a try one of these days. Getting the handle of analyzing deals is important imo.

You’re a saving grace, @Mitch Messer! Thank you for clarifying this. I also received your FB message. I’ll be looking into that as well. Thanks again.