All Forum Posts by: Kendall Short

Thank you very much!! All of that helps a lot. The job they will be offering will be salary. I will screenshot this and save it for future reference.

Hey Kathy, I see that you are in Missouri as well. Do you know of any lenders around the state that are flexible and are willing to work with investors that have tip based jobs?

Like Steve said, connect with a realtor and ask to be placed on their mailing list. You will get notifications within a day of them being put up on the MLS. Minimum of 5% down with the PMI on a 150k at around $70-80/mo. I would recommend putting down a little more to not get TOO overextended. PMI is not a problem for me though, as it allows me to get into a property quicker and save 1000’s up front.

Make sure to factor in PMI with your analysis. Also, shop around and talk to different local lenders and see what they’ve got in regards to down payments. I can get 5% conventional here for an owner occupied with the PMI falling off after the 20% equity mark is hit.

That’s where my head is at currently, Steve. I think it’s a great place to start.

I think most people here will say bigger is better. It just depends on what you can finance and how many tenants you’re willing to take on. With a duplex HH, you are depending on the property to always be full. If not, you’re paying the entire mortgage. With a 3 or 4, you can have a vacant unit and still have some rental income coming in to help out with the pay down. It all comes down to whether it’s a great deal or not.

Hi BP, A little background on what my situation is. 22 years old. Credit score 710 via credit wise. Duplex I’m looking at: 154,900 asking, 4x2 full ba. It’s been on market for 368 days and I’m guessing because one side is pretty run-down. The owners are willing to remodel the entire side once under contract. I am looking to get it down to 130,000. -Cash on hand: 13,500, should be around 17500 by December which is ideal closing time. -Some family will help with a few thousand if necessary. -Debt: $900 from my last semester at school. No Student loans, and I graduate in December. I plan on putting 10% down as it will be owner occupied. MHDC will grant me 4% of the purchase price. The numbers (including P&I, cap ex, ins., PMI, taxes, vacancy, prop mgmt): ~$1150, I don’t have my analyses paper with me but it was that +/-$50 Each side rents for $900, but since I am in a college town I would bump it to $1000, 250/rm. I’ve got a commission based job and I bring home around ~2500/mo with no debts, other than the 900 I will pay off at the end of this month. My school was paid for by athletic scholarships. A month or two after graduation, I will be heading to training to be a service manager (41-45k/year depending on monthly cash bonuses) for 19-21 weeks with all living expenses paid for by my company, so there is even more time to build up capital. ANYWAY: Are there any loopholes or things that I can do to obtain a loan even though I’ve currently got commission based job? I’ve heard of lenders taking into account a job offer letter and future rents as income, but I’d like to know what any of you have to say?

Beginner here looking to get into my first duplex/househack as soon as I graduate in December. To precede my reply.. Of course, making money and becoming financially free is the reason we are looking at real estate in the first place.. With that being said, I am looking into a duplex, 4x2/side, that would carry around $1178/mo in expenses (including cap-ex, vacancy, repair costs put aside/mo) and would bring in 1000/mo in rental income. As a 22 yo and beginning investor looking for a house hack, I do not mind breaking even or even spending a little bit out-of-pocket per month. This is simply because I know that I am still saving a tremendous amount on living expenses, and it will be cash-flowing something serious once I get out of there. Everyone has their own criteria in regard to cash flow, ROI, yadayada, but I think simply not having to pay housing is pretty cool as well.

Following this discussion! I’d like to hear what others have to say. Thanks for posting.

That is the plan. Eyeing a triplex a mile away from the school. $125k for a two 1x1 unit and one 3x1 unit triplex. Excited to get started as the numbers seem to check out.