All Forum Posts by: Louise A.

@David Bell

Depend on what area of town you're buying in.  I buy in Indy and use 10% vacancy, 10% management and 15% repairs/maintenance.  That is conservative in better locations, but I prefer to be happily surprised by my repairs rather than subsidizing my properties!   I don't factor in any rental growth or property appreciation.  This is the Midwest!  

@Jason Higgins

Go for it!  I heard from my mortgage broker that the 203K loan is a bit of a headache because your contractor has to be approved by the bank and you can't do any of the work yourself, but if you don't have the funds to do the rehab, I think its a great program if you can be patient with the process.  I also think that its a great idea to hold all the real estate you buy rather than selling.  The more you own the wealthier you can become - especially in Boston.  And its not unethical at all to rent to your friend if your rents are in line with the market.  As James said, you're taking the risk on the loan, not your friend. Let me know if you have any other questions that I could help with.  My husband and I are house hacking currently and living for free.  A beautiful thing, but easier in Indianapolis than in Boston!  

@Scotty Grider

Looking forward to meeting you!  I think I'll be at the CIREIA meeting.  Check out INREIA as well as the Alpine meetup.  There are lots of great investors in Indy to connect with!  Let me know if there's any way that I can help.  My husband and I are buy and hold multi-family people...  

@Paul Miranda

If you're buying in your personal name and can get 30 year fixed rate mortgages I would do that.  Best money out there! 

@Cody Sanchez

Both of your options are excellent strategies.  My husband and I tried the second, but mis-timed the market and were ready to sell at the height of the recession.  We lost money on that one!  We're house hacking at the moment and its been excellent.  We lived in a 4-plex we owned and are now in a duplex.  All of our tenants are young professionals and don't ever use the phone to make phone calls.  Land lording through email is so easy.  Depending on your tenant class, you may find that the fears of living beside your tenants are unfounded.   

I haven't used the 203K loan, but it can be a great option to get into something and rehab with little out of pocket money.  Stay in touch if you have any questions!  

@Jeremy Stepanovich

Hey!  I've been exactly where you are now.  Unfortunately, if a seller isn't motivated, there's really nothing you can do.  

The only thing I'd try would be seller financing at a higher number but better mortgage terms.  Sometimes if the seller doesn't care about getting the cash up front but really wants a certain number, I can afford to pay more to get better terms and give them the price they want.  Its a long shot, but might be worth a try.  

$25K is really close, right?  Only 5 or 6% off their price?  Maybe if you walk and they wait a couple of months with no action, they'll be more amenable to your offer.  Stick to your guns.  

@Guy DeBoor

Hey!  Welcome to BP.  I'm an investor here in IN too and also have a day job.  It would be great to meet you at an INREIA or CIREIA event!  

@Thomas Wurfel

I felt exactly the same way, but my lender actually coached me through the transfer process, so that made me feel pretty secure.  Its a personal decision though.  Buying in LLCs from the beginning is probably a better business plan.  Plus that means your properties are cash flowing the way they should be.  Our early purchases relied on the longer amortization period to cash flow.  

@John M. 

Hey! That is an absolutely great plan. I think that you can get a better LTV if you're living in it, right? My husband and I used that strategy at the beginning, but we weren't living in the properties, so we were only able to cash out at 65% of appraised value. That still put us at more than we had invested, so it worked out well! Let me know if there's anything I can help with....

@Phil Shaughnessy

Two thumbs up on the house hacking!  My husband and I are in a duplex downtown right now.  Its a great strategy.  What areas are you looking in?  It would be great to get started analyzing and walking properties now so that when you've got the job, you're ready to start making offers.  Let me know if there's any way I can help!