All Forum Posts by: Michael K.

@Kristi Wolfe

Implement a credit score requirement for your CHA/Section 8 tenants. Do not tell them you cannot accept them, if some savvy tenant comes along you could get yourself in big trouble. I have clients who've had great success working with these programs. Start the approval process so you can make section 8 an option next time you need to fill a vacancy. Best of luck.

@Misti DelMar

I think even in hot markets there are things that will get overlooked, if you’re willing to get into something that needs updating and TLC then I think you can find a deal. Try house hacking or even rent hacking. With this being your first deal, your primary goal should be to reduce your living expenses anyway possible. Doing so will allow you to increase your savings rate which will open up new options for you. Best of luck!

@Man Le

I’ve got a friend who invests in Aurora, I remember going over the numbers with him and being pretty impressed, would be happy to put you in touch with him.

@William Wright

Congrats on picking up the property! What are the unit configurations like? (i.e #beds/#baths). Is it a full 3 unit or a 2 + basement?

I worked it out with one of my tenants to shovel snow and maintain the front of the property free from trash etc. In return, I reduced their rent by 50/month, so that's 600 a year. They are very reliable and even hire somebody to do it when they are away on vacation during the wintertime. You could consider this option.

As others have mentioned, it all comes down to the numbers and profitability. Since you're going FHA you will need to buy something that is close to move-in ready. Buying with FHA can be tough in a seller's market, so you may find it harder to bargain down the price. Also, know that so long as your credit is decent you can choose to go conventional with low down payment. Let me know if you need help running the numbers on a property.

Lack of supply, high demand, and inflation are all tailwinds that the market still has going in its favor. Our primary headwind is going to be rising interest rates, expect mortgages to cost roughly 1% more by end of the year. For example, going from 3% up to 4% on a 500k loan would mean that your monthly payment would rise to 2,387.08 from 2,108.02 - almost 300 dollars higher.

I think you're experiencing some analysis paralysis here. You don't need to read a whole bunch of books to take this approach, just start renting out the rooms! I went this approach a few years back and rented out the extra bedrooms in my place to friends who were looking for a space. I went with people I trusted and who I knew were going to be able to pay rent. It eventually ended when I met my wife and we moved in together but if I hadn't met her I might still be living with them. I'm still on good terms with those friends, no horror stories. 

Alternatively, you can do the Airbnb route, so long as you are comfortable with strangers coming into your home. I run an Airbnb, people are generally really nice and normal. 

Hi @Austin Anderson congrats on getting started. A cash flow of 600 dollars on this small of a property would be excellent. The only thing I would question is the rental data you pulled. I just took a look on the MLS. Across 160 studio rentals in the Gold Coast over the past year, the median rent was only about $1200. I only found a few that closed over $1600. I would be careful that you're not pricing the unit as a 1 bedroom. Obviously, it also depends on the condition of the apartment and since I don't know the address and have seen the interior I can't say for sure. PM me if you need help pulling comps. And best of luck!

I'm regiested on the HUD website, let me know if you need help putting in an offer.