All Forum Posts by: Micah Carter

This is my next read!! Currently reading through "Raising Private Capital " by Matt Faircloth, which is an absolute beast as well. Looking forward to this one @Chad Carson

Hey BP community. I was able to snag a coffee meet up with a local real estate investor. I mentioned wanting to learn more about the business and they agreed to a quick meeting. Any recommendations for good questions to ask? 

Thanks Aaron, do you have a personal worksheet that you use? I am trying to get some examples to practice analyzing deals. So for you, the primary factory is the location? @Aaron K.

What are the primary things you look for when reviewing a potential investment property for a buy & hold rental? More specifically an investment property that involves the BRRRR strategy? What is your personal criteria or checklist that a property must meet?

square footage? foundation? number of rooms? age of home? ARV? Cap Rate? It can be anything and everything.

@Steve DellaPelle @Aaron K. UPDATE. Spoke with the lender yesterday and they would require a 20% downpayment and it would change to an investment conventional loan. I was planning to use a first time home buyers loan to save cash for small renovations while the tenants were paying rent to cover the mortgage. So... great to know for the future when dealing with banks/lenders. 

We explained the situation the current owner and the negotiations started.

The owner was willing to provide seller financing so we are still moving forward. The seller financing may actually work out better for what we are trying to accomplish and much less of a downpayment. Thanks again for your input. 

 @aaronklatt  I am getting in touch with the lender to double check. Thanks for this information!

@Aaron K. It's a conventional loan. I told the loan agent the home was currently being rented and he didn't mention anything about a move in time frame. We planned to let them stay for 3-6 months to find a new place but they are good tenants and we are mainly purchasing as an investment just didn't want to get into a bank fraud issue

@Steve DellaPelle So I would have to be moved into the home by a certain date upon closing as part of the loan terms? 

If we were purchase and say a year down the road wanted to move out and get more tenants into the home would we have to refinance to an investment loan?

Hey guys, my wife and I are purchasing our first home. It is currently tenant occupied and we plan to let the tenants stay for 3-6 months after we close. We are also considering letting the tenants stay a full year because our current living situation is great and cheaper than what our monthly mortgage would be. 

Since we are receiving a residential loan from a bank, how would it work if we let the tenants stay a full year? I know the IRS requires you to stay in the home for the majority of a year to consider it your primary residence. Do we have to move into the home for tax purposes or could we continue to rent & hold this home as our primary? Would I need to refinance if we decided not to move into the home but keep renting it?

Any advice on this would be rock solid!

I think @Joe Splitrock is right. A book that really helped me take hold of my financial life was THE TOTAL MONEY MAKEOVER by Dave Ramsey. It's critical to have a plan for your money. Write a list of attainable goals and start hustling! Dave recommends.. 

1. Save $1,000 for an emergency fund

2. Start paying down debt

3. Save another 3-6 months living expenses

My wife and I are currently working on step 3 and it's taken about 3 years. We have about 75% saved towards our goal of 6 months expenses. It won't happen as quickly as you would like, but if you put the work in you will start seeing results. Good luck & let me know if I can help with anything!