All Forum Posts by: Marcellus Jordan

Marcellus, you're definitely on the right track in terms of investing, house-hacking in my opinion is the easiest way to start. Most of my client do the FHA route just because of the low cost needed to start the process. If you wish to cashflow the best chance would be the triplex and fourplex route, however keep in mind those have to pass the self-sufficiency test, where if fully leased out the property can technically pay for itself. Another big thing is to find an investor friendly lender, finding a good one can let you get rid of a lot of doubt through the process. Best of luck in your route!

Hi Marcellus, congrats on the journey and that you are looking to househack. I currently am househacking in Houston and only paying $175 dollars a month and utilities to live in my home.

In finding a property, you just have to analyze as many deals that fit your guidelines that come up on the MLS, drive to the area, and look at the numbers. I believe that is the only way to do it since you want certainty in the protection of your investment and capital.

A lender will look at your debt, income history and credit to evaluate if you are capable of making mortgage payments with the current interest rate. They will then give you a pre-approval letter to show to sellers to prove you are serious. Since you just graduated college; you should be able to show your transcripts and an offer letter and void the 2 years of previous income required to qualify for a loan. I recommend talking to a lender about your current situation, he/she will tell you exactly what you need.

I have heard negative things about an FHA 203k loan. Since improvements must be approved by the bank over time, it requires the contractor to sign a lot of paperwork while working jobs. It can be a massive headache for you and contractors since banks tend to move slow and contractors want to finish jobs fast. MeetKevin's first deal was with a 203k loan and he regrets using the loan product.

I personally used a conventional loan; since I don't have to worry about PMI forever and I can buy a fixer-upper home without needing an FHA inspection before closing. I then renovated with cash savings and my income from my W2 job, since I am not spending much money on rent.