All Forum Posts by: Lamont Chen

@Sandy Gabin

I believe class A, B, and C property also refers to the area in which the property is located besides factoring in the condition of the actual property. Below is a useful link I found which describes the 3 pretty accurately.

https://www.biggerpockets.com/...

@Vince Dent

I would look at it from the lens of whether or not the purchase of the property makes sense from a income and expense perspective. An added bonus which I tend to look out for my deals is the ability to add value to the home by fixing it up, etc.

That way you are buying a property with "low" purchase price and low interest but by the time it is fixed up you should hopefully be in a situation where it is worth more and you have refinanced for a low rate.

@Misael Carlos Vera

Congratz on deciding on RE investing.

I purchased my first property 1 year out of college because depending on your major and job college accounts for X years of professional experience. I did 20% down but in hindsight I would probably go with FHA or something lower as I was house hacking the duplex I purchased.

Similar to lots of other investors I "lucked" out but was actively looking once I knew I was qualified for purchase. It took me about 3 months to find the deal but should always consider if the numbers work before jumping on the first deal which comes across your desk.

Happy to chat more if you have any questions. Feel free to DM me.

@Jack B.

Your down payment would be part of the 310k purchase price so you would be subject to the difference between 400k and 310k. If you think about it a different way... if you bought the place all cash 310k and sell for 400k you would be in the same situation.

However if you purchased the home as a primary residence, depending on the laws for your state you may be exempt from $X of gains. In NJ it is 250k for individuals so please check with an accountant for your state. If it is a rental property, you can sell and defer taxes using a 1031 exchange however the amount of taxes deferred will be greater because it will be sale price minus your adjusted cost basis (purchase price minus depreciation claimed on taxes).

@Kimberly Kim You can check with an accountant whom specialize in TX but since it is your primary residence you should be able to enjoy $X in tax free capital gains when selling the property. If it was a rental property then the 1031 exchange option would be in play.

Good luck!

Congrats @Syed Zafar

Up to the closing table you will go through a home inspection which may indicate things to be fixed on the property. Typically I like to go for credit towards closing costs instead of the seller doing the work so that I know it is done properly. There are certain exceptions like oil tanks, etc. which I may prefer the seller remediate prior to closing. Also if the units are rented just make sure any security deposits and prorated rents are calculated properly at closing.

Beyond closing, if the units are vacant it is always a good idea to do some renovation prior to placing new tenants that way you are getting quality tenants. You want to look for good credit and income especially nowadays when placing tenants.

Good luck!

@Kimberly Kim

Congratz on the move.

Just to clarify is the property your primary residence or rental property? Reading your description it does not appear to be either. Also have you considered perhaps renting out the place?

On paper your mortgage interest (3-4.5% most likely) is lower than your college debt but the home should appreciate, tax depreciation, and rental income should hopefully be of greater benefit.

@Gina Medrano

I know a lender whom I work with and does 203k loans. He is great with first time investors and home buyers. I will DM you the contact.

@Al L.

Welcome to the world of RE investing!

For myself personally, besides investing locally in North, NJ I knew someone whom relocated to the Orlando area and is helping me being the eyes and ears on the ground. From time to time BP posts articles on top cash flowing, appreciation, etc. markets so that could be an area to take a look at as well.

There is lots of due diligence while investing out of state and one of the folks at BP wrote a book you can check out

Good luck!

@Kim Freeman

I believe typically you can only have one FHA at a time as well. Lots of the folks on the podcast purchase the home using FHA then BRRRR to refinance to a conventional loan and repurchase another residence using FHA.

Certain cases where you can have more than one FHA would possibly be if there is a separation (divorce) with the FHA co-owner, relocation, etc. but the bank should know more based on your circumstance.