All Forum Posts by: Michael Dumler

@Aaron Hudgins you can take several avenues but I would recommend using that type of money as a down payment for house hacking. With an FHA insured loan you are only required to put down 3.5% of the propertie's value. Also, depends on your current postion and the market you reside in. What are your goals? Are you looking to invest in RE for the long haul or do you just want to make a quick buck? Feel free to shoot me a message, would love to help in anyway that I can.

@Shaviv Delkhah house hacking in my opinion is the best avenue to get your foot into RE investing. Also, given your current position, I'd recommend reading @Scott Trench book "Set for Life." Great read that sets a blue print up to properly go from house hacking to reaching early financial freedom. 

@Alexis York keep in mind HOA rental restriction. Most associations have them and will require you to first live in the property for a number of years before you can apply for a rental permit. As others mentioned, watch out for monthly association fees. I've come to find that most associations do not budget properly and often overpay for an expense, therfore, jacking up monthly dues over time.

@Nick Cresci finding a property that meets your criteria is hard to come by in today's market. With  record low inventory, it will be extremely difficult to hit the 1% rule for mls properties. If you do plan to purchase an investment property that meets your price, plan to have a low or zero due diligence period and very limited stipulations in your offer. Low ball offers in the nature of this sellers market will be laughed at. Obviously, I can only speak on behalf of my market (Atlanta, GA) but I assume the same conditions are present in other markets as well. Generally, your mid west and south east states are most prominent for low purchase price properties and cash flow specific investments. 

@Adriana Vergara a limited warranty deed essentially means that you as the buyer will receive a lesser quality of title. When a seller wants to transfer a property through means of a limited warranty deed, he/she is not responsible to the buyer for defects that were in existence prior to original ownership. In this case, the seller is only responsible for defects he/she created. 

If you decide to pursue this property, I would recommend obtaining title insurance at closing. Georgia is considered a "buyer beware" state, therefore, buyers assume all risk after purchase.  

@Angela Costa if the deal makes sense and you have some financial reserves set aside, then I would continue to pursue another property. 

@Oriana Schneps I would certainly consider staying with your W2. While it's not impossible to receive a mortgage without a stream of W2 income, most lenders do not like to see this and would need more assurance on your end. I'm confident most RE investors would only suggest leaving your job once you have accumulated enough passive income to cover your expenses. Feel free to message me if you want to discuss more. 

@Sawyer Smith depends on the investors financial position and investment strategy. I agree, I think the lockdowns implemented by big cities have discouraged many first time and even seasoned investors. As you mentioned, if your investment strategy is soley focused on producing cash flow, then smaller markets (50-80k population) with affordable housing might be the way to go. If you're someone that is looking for appreciation growth in your property over time, I would not rule out big markets yet. @Brandon Turner talks about this a lot, essentially saying that your invesmtent strategy vill vary depending on the conditions/factors of the market. 

@Jimmy DelOrfano going along with @Charles Carillo, you can absolutely buy a property all cash. Given the nature of the market now you would certainly be at an advantage coming in with an all cash offer. 

It really depends on your situation though. If you are looking to refinance a year after purchase, make sure your income is steady and all other lending requirements are met. In addition, confirm the value of the property you decide to purchase. Talk to realtors, appraisers, and others in the RE industry to determine how much the home is actually worth. It would definitely be unfortunate if you were to pay for a property all cash that is above market value. 

@Fok Ming I completely agree with @Joshua McMillion. You're worrying about problems that haven't even happened yet. I would suggest to continue your practice of analyzing deals. Yes, majority of properties listed on the mls will not be financial sound deals. That being said, there are always creative means you can take to add value to the property and make it a deal.