All Forum Posts by: Michael Dumler

@Ugin Rapoport what you are referring to is the Uniform Residential Loan Application (Fannie Mae Form 1003 or Freddie Mac Form 65). You are correct, this is a standard form application that allows the lender to collect your financial information to assume and establish a risk profile. I don't believe there is any necessary criteria to look for when it comes to government sponsored loans.

As far as pursuing the best interest and financing terms, that just comes down to speaking with several different lenders/loan originators. At the end of the day, it's the lender that decides as to whether or not you are approved. 

@Jeremy Murphy BiggerPockets has a whole tools section where you can access and use calculators. As far as the difference between analyzing U.S. vs Canadian properties, I don't believe there is any. Continue to use the same metrics and principles when it comes to analyzing potential deals. One thing to look into and keep in mind that may be different is the banking systems and legal entities between the two countries. 

@Joshua Bailey even if the unit is $200-300 below rent market value, does the property still cash flow? Sometimes it's better to have a great long term tenant then it is to cash flow an additinal $100-200 per month. However, I do like your strategy, raise rent by $50 for the first year and see how that goes. Are they on a fixed lease? 

Also, given the second unit is vacant and updated, you can certainly have rent at market value for new prospective tenants. Best of luck! 

@Brian Blankenburg honestly I probably wouldn't even change capex/repairs when running the numbers. Given it's a variable expense, who knows what could happen in the long run. That being said, since the property was built in 2005 I can't imagine you'd run into too many problems. This is why it's essential to have the property inspected during due diligence. Once you get an inspection report, this will give you a better idea of what may need to be repaired/replaced in the future.  

I would recommned to set a reserve fund of 5k for each investment property in the event something comes up. 

@Arjun S. crazy to hear that your 1st investment property appraised 22k over purchase price being that it was already tenant occupied. Which market is this in? 

Also couldn't agree more, setting expectations upfront is extremely important and something I advocate to all agents, PMs, contractors, etc. 

Congrats on your investments. 

@Adam Amato as far as I'm aware this does not break any violation laws. In fact, I've heard numerous house hack stories of individuals doing exactly what you have mentioned. Best of luck!

@Sela Flynn find an RE agent that has house hacked or at the very least has helped past clients house hack. Continue to save for a down payment and also associate a reserve fund for the property in the event something needs to be fixed/repaired. Identify the best route for financing by speaking to 4-5 different lenders (potentailly use FHA insured loan to maximize levergae). Like any other rental, properly screen your tenants/roommates. Highly recommned reading, "The House Hacking Strategy" by Craig Curelop. Hope this helps. Feel free to reach out if you have any follow up questions.

@Logan Clark Buying a pre foreclosure home is a great opportunity to pay lower than market price for a property. However, you're usually up against seasoned RE investors. Also, keep in mind pre foreclosures are not listed on the mls and are usually sold at auction. Once the home is actually foreclosed on, it is then REO and listed on the mls by an agent.

@Leela Gutta saw a very similar post the other day. From my experience and networking... generally your south east and mid west states posses affordable housing (150-200k) that cash flow. Also, make note of state laws that are landlord favored. Not to be biased, but Georgia is a landlord friendly state that many out of state investors look into. Overall, I think it's extremely important for you to first identify your criteria and then pick your target market. Once you have your market selected, stick to it like a pro. I have worked with several individuals that try to broaden their net by selecting multiple markets. While this may seem beneficial, it's quite counterintuitive and hurts them in the long run. As many other BP enthusiast mention, wherever you invest, it's essential that you form your core four (RE agent, contractor, property manager, lender). Hope this helps. 

@Jeff Dong getting your real estate license just to buy a house hack? In my opinion, not worth it. There is always the debate of whether or not RE investors should obtain a license. I think unless you're doing multiple transactions a year, it doesn't make much sense. To give you an idea of costs associated with obtaining a license: RE course ~ $500, state and national exam ~ $200, fee to activate license ~ $200, becoming a member of the National Association of Realtors to access contract forms ~ $500 annually. Also, keep in mind commission splits between the brokergae is usually 70/30 or 60/40, you do not pocket it all. Fianlly, the state commission requires you to take continuing education courses throughout the the year. Hopefully this gives you some insight.