All Forum Posts by: Kristina Lugo

@Ramon Flores I’ll look into these options, thanks!

@Justin Kane thanks, Justin. The neighborhood is changing with investors coming in and creating a lot of value. Properties are being flipped quickly! My strategy is buy and hold but seeing the gains other investors are experiencing is a good sign!

@David McLean thanks, David. I like the idea of looking at this like a hard money loan when considering the risk.

@Sue Hough I appreciate your kindness and sensibility!

@Bob Okenwa

Thanks, Bob. My goal is to find a property that doesn’t require a complete gut. In my price range I’ve found that moderate renovations will get the job done, bring a decent return and the units can rent at market value.

The initial analysis is optimistic, but I get a sense that once I go through the actual 203k process with consultants that the numbers will change, which I'm prepared to accept and not move forward if the numbers don't support my BRRR goals.

Cause gettin the first deal is great but working it line up the next one is even better!

@Zack Karp

I really appreciate this! My loan guy is aware of my strategy for the next deal so we’re working through the options that will get me there.

As for the property, my Reno estimates are definitely low, so I’m going to do my diligence and get a few quotes.

I’m also aware of the emotional side of dealmaking, how badly I want it all to work, but being mindful of forcing a situation I should walk away from.

Luckily, I’m in no rush and eager to do what I need to get this right!

@Zack Karp

Ok, so here’s a few numbers to illustrate:

- 203k to purchase a home for $50k

- another $50k for the renovations for a total of $100k

- $3.5k downpayment.

- ARV is $200k

I'd like to purchase a 2 unit building with a 203k loan that I'll eventually BRRR. I have some money in savings, but not enough to cover a down payment, closing costs, and reserves to hold me over for a few moths while I manage the construction and vacancy.

I'm considering asking my parents to withdraw $10k from their 401k. This will be used for a down payment and closing costs while my personal savings will sit in reserves. I've never asked my parents for money, so I'd like to approach them with a simple strategy. I'll show them the numbers, how the property cash flows and the plan to cashout refi to repay them the loan plus the 10% withdraw penalty.

I understand all investments involve risk, but how can I protect their investment from any loss? Lets say the whole deal tanks. How can they recover their $11k?

Thanks so much!

KL

@John Warren thank you John! I didn't think about the benefits of PMI.

I’m working on building a team. I’ve given my agent criteria for the west and south sides of the city. We’ll be meeting for the first time this weekend!

I’ve spoken with 2 lenders who specialize in 203k loan products. One of which has said they don’t do cash out refi. I have a phone call meeting this afternoon to clarify. I’m looking for a lender who cares about my long term goals not just the deal right in front of them.

As for a GC, that’s a work in progress! I’m going to focus on researching how to properly vet a GC as this will be my first time working with one!

I plan on using a 203k to purchase and renovate a 2 flat that I plan to live in for a year or so. I'd like to BRRR it and use the funds to purchase the next, investment property.

Is a cash out refi or HELOC a better option?

Thanks everyone!