All Forum Posts by: Justin Hammerle

Hi Ted, do you have enough road fronting on the land for multiple buildable lots?  Depending on the number of lots and your towns subdivision bylaws, you could be looking at a considerable amount of additional work to approve more than one.   Taken all that into consideration, you could subdivide the land and list the lot raw and let a builder entitle the land to build and you just pocket the raw land value.

Pre-approval is a hard pull - if you get multiple pre-approvals with a 45+/- day timeframe, credit bureaus will count it as one.

You could look into private sources for financing; they are less likely to require multiple years of income but they are likely going to want to see some level of experience prior to lending; you may get lucky and find someone willing to take the risk anyway. Your third option would be family and friends.  Outside of that, its going to be tough without showing a few years of consistent income.

Welcome to BP!  I have a similar background and just transitioned to sales recently.  Great to have you on the forums!!

Assuming the house is a SFH. I would sell "as is" if you can; use the funds to house hack a multi-family as your primary, and potentially look to buy an additional MFH. Either way you are going to end up with debt on multiple properties, I would prefer to have debt on properties that yield the most gaining equity the fastest.

Yes - the BRRRR strategy is just a method to recycle capital into other investments. You can do this with your primary you will just likely be pulling out less than if the unit you are occupying was rented out.

My vote is to raise it to market by $400 if you think you can get it.  That's a lot of lost income, and for a tenant that has a bad record likely better to get a more qualified tenant in there anyway.  how much to remodel the unit?  Is the $400/mo increase contingent on the remodel?

labor costs vary by region; for example the southeast is going to be much less expensive than the northeast; material costs are less variable and more consistent through the country.

@Dustin Powell - with it being a new build it doesn't sound as though there is any value add there to capture; meaning your equity growth is going to be solely based on natural price appreciation and what you paydown in principal. Also, with a $295K purchase price at current interest rates, $1k monthly rent is not a great yield ((1000*12)/295000)). 10% is a pretty safe benchmark but varies based on your location. If you do plan on keeping the property long term, at a minimum the property should cashflow relative to its PITI and expenses when fully rented. From an investing standpoint, it doesn't sound fantastic.
 

@Elijah Faas - would house hacking a multi mean you are living rent free? Or is it likely that the rent will not cover the PITI? If it won't, I think it is a difficult decision considering you are living rent free and able to save 90% of your income. Additionally, capex could be high if you are buying a property in poor condition which could put you in a very ugly position.

Equity appreciation is great but being house poor is not. Living rent free is rare and It may make sense to do that as long as your able to in order to continue to save to put yourself in a better situation a few years down the road with a house hack.