All Forum Posts by: Michael Dumler

@Kiel Martin to answer your overall question, closing costs are usually 2-3% of purchase price and can vary. Given that you plan to purchase using all cash, you're mainly paying attorney and escrow fees. If you planed on using a mortgage, your closing costs would also include loan originations fees, appraisal and survey fees, title insurance, property tax, and escrow fees. As others have stated, the likelihood of obtaining a SFH below 40k is practically impossible. I would highly advise using leverage to obtain rentals.

@Dan Powers I agree. I don't think will see a correction in the market for at least a year or two. 

As far as inventory coming to the market, a couple things to note. One factor being the forbearnce period. I don't see any reason why this would be kicked into 2022. Question is, how behind are homeownes on payment and are lenders willing to set guidelines to help?  Another piece at play is the eviction moratorium set to expire at the end of July. This gives the opportunity for landlords to finally collect rent. However, if payment is not issued, this could lead to a lot of movement in the rental category. 

My prediction, home prices to peak in 2022 and then will see some leveling out. 

@Auryana Faramarzi 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. 

@Audrey McHugh highly advise your first investment be a house hack property. Great way to leverage cheap debt and utilize low down payment. Not to mention you'll also obtain the property at discount given commission received. Generally, set aside 5k as reserves for each investment property in the event something needs to be fixed/replaced. 

@William Gogolla I think most investors would agree and advise that if the deal makes sense you should take advantage and proceed. Real estate is a long term investment strategy. Even if housing prices fall over the next couple of years, it's a safe bet that at some point they will soar back even higher then what we are seeing now. "It's time in the market, not timing the market." 

@Marian Allen properties with an in-law suite work well for house hacking, or rent by the room is certainly an option as well. 

@Khalid Alabi I'd recommend saving as much capital as necesasry to use as a down payment for a house hack. Not only will this allow to build relationships with different agents, lenders, inspectors, etc., you will also experience the requirements of being a suitable landlord. 

@Karl Anthony odd. Most brokerages will charge 40-50% of first months rent or a fixed fee and that's it. Demand for rentals is at an all time high. It should not be that difficult to obtain a tenant. Definitely find someone else. 

@Alexander Glantz you can potentially buy out of your lease. As others have stated, it depends on the terms. Even if you are locked in, I would still encourage you to identify your target market and property type. Once you niche down on your criteria, (purchase price, location, property layout, bed/bath count, etc.) when submitting offers, you will feel much more confident in the process. Start talking to lenders and agents now and let them know your current situation. 

@Oladele T. this is why it's crucial to set expectations upfront when taking on a project. I recommend always having a reserve fund (~$5,000) set aside for all investments in the event that something goes wrong. Have you received any offers on the property? It's vital to now weigh the pros and cons of either holding the property on market at asking or to lower the listing price to attract buyers. Hope this helps!