All Forum Posts by: Louise A.

@Erik E.

You need to talk to a lender who does FHA loans. That's the product that you want. Unless guidelines have changed, they will lend with a 3.5% DP on 1-4 units. Keep calling brokers until you get the answer you want! Its not called 'dialing for dollars' for nothing! Good luck!

@Charles H.

My strategy in this situation (which is pretty common these days) is to talk to the broker and say something like, "I'm really interested in the property and would like to submit an LOI, but its not going to be anywhere near the listed price. I don't want to offend your seller. Should I still submit or do you think it will sell near list?"

This way you can feel out the seller through the broker.  If the broker still really wants you to submit you know there is some room.  Or the broker may want to use your offer to soften up the seller for a more reasonable sales price.  

Although pricing is still high I am seeing some pretty big discounts off of list as well if the broker thinks that you can close.  Feel free to PM if you have more multifamily questions....  

@Brandon Collins

Hey!  Welcome to BP.  Definitely plan to attend our REIAs if you're looking at RE investing in Indy.  CIREIA and INREIA are both great places to network.  

@Account Closed

There are different phases in your investing career.  In the first phase you're accumulating assets and need all of the free cash flow you can get your hands on to purchase more.  In later phases you're holding what you've got and may choose to pay off your mortgages to enhance your cash flow.  My favorite book, Millionaire Real Estate Investor, speaks to this.  Keller says that most Millionaire Real Estate Investors are leveraged at about 60% of their portfolio.  Worth a read.  But for now, keep that cash working for you.  Don't pay down loans.  Buy more!  

Perhaps talk to long term investors about whether they ever had notes called.  I don't think that the Ramsey story is the norm.  

@Account Closed

Definitely questions for a CPA!  But I had a couple of thoughts anyways which you can take with a grain of salt.  You're living in the house, right?  I don't think your depreciation schedule will be affected at all.  You'll have the regular 29.5 straight line depreciation. 

For the repair expenses and the segregation, I'd definitely talk to a CPA.  Deducting repairs when you're occupying seems pretty fishy.  I'd want to have some pretty good documentation along the lines of the percentage idea you mentioned.  

The segregation you're mentioning is because you're wondering about your rehab affecting the basis?  Great questions for a complicated situation.  

Good luck! 

@Isaiah Moch

Hey!  Welcome to house hacking!  I always recommend buying real estate that needs a little TLC.  Its easier to build wealth if you do a little work and improve the value of what you own rather than paying top dollar for retail.  The big question is whether you can live somewhere else while you're completing the TLC.  If you have to live in it, you might want to take that into consideration too.  Feel free to PM me with any questions.  I've been house hacking since 2012 and loving it!

@Joshua Hollandsworth

Congrats on your accomplishments.  You are in great shape! 

I haven't bought a portfolio from someone else so am not sure how to finance that.  

If you're looking at a small apartment building, your best bet would be to use a local lender. Their terms will likely be a 25 year AM, 5 year fixed rate, 20% down. If you don't get those terms, keep calling banks until you do. Your DTI is less important in commercial, but a W-2 still helps.

PM me if you have other specific questions.  

@Daniel Pereyda

Hey!  Welcome to BP!  I'm normally at the meetings that Andy mentioned.  It would be great to meet you...

@Michael Malloy

I've read all Lindahl's books and thought the first one was the best.  I think its called 'Multi Family Millions'.  Then I did the $1K home study course because I was so impressed with the book.  And then I signed up for his coaching program!  I've done all the events except for the private money one.  If you have any other questions, feel free to contact me.....  

@Greg Mayer

Canadian house hackers!  Awesome!  I'm from Victoria but am house hacking (and building a portfolio) in Indianapolis.  My husband and I were long distance from Phoenix to Indy for 3 years too.  He's with me now and we've house hacked in a 4 plex we own as well as a duplex we're living in now.  Feel free to PM me if you have specific questions.  

Real estate is a great way to fund your retirement.  If you have enough time, its pretty hard not to build wealth through property ownership....