All Forum Posts by: Michael Kistner

@Justin Wotton

With house hacking you have the ability to come in with 3.5% down on an FHA loan.

  If you try to buy a multi family investment the minimum I’ve seen lenders allow down is 20%. 

  So depending on your price point the difference can be significant. 

Starting out buying a multi family and moving into one unit while you learn the ropes is a great move if you can do that. Then after a year you’d be able to move out and grab another property with 5-10% down. Very easy way to get going. 

 - Mike

@Brian Garrett

   Yea he'd have to if they're only staying weekly which could be a bad sign.

    If he's just doing it because the tenants weren't paying on time and has trained them that way then I think there could be an opportunity there. There's a lot of unknown factors here

@Brian Cain

 It looks like Cathedral City is going to grow a little faster than the national average. I'd do a little more research on what's driving that but it's a start. 

https://www.bestplaces.net/economy/city/california/cathedral_city

- Mike

 @Daric Carter

    I would see what the rents are going for in that area and see if you can have the tenants start paying the utilities. That in itself would be a huge savings.

     Based off the numbers you gave he's grossing $38,480 in rents a year and paying roughly $10,800 in utilities. Sounds like a good opportunity to increase cash flow there.

    If you plan on moving into a unit you can come in with 3.5% down and probably still cash flow.

    I'd keep looking into it.

 - Mike

@Michael Doherty

    The numbers work, it's not a huge cash flowing asset but still works!

     I think you have to look at what your goals are and does it help you get there? Also, do you see continued appreciation in there area? I'm not usually one to buy just for appreciation but if you're cash flowing $175 a month and have a chance for appreciation down the road I think it's a good deal.

   Good luck!

- Mike

@Acaiah Howard

 You want to find out what all the expenses are going to be. 

Principal, Interest, Taxes, Insurance (PITI),

All the operating expenses;

Property management,

Maintenance,

Vacancies,

And then figure out what it will rent for. 

For ARV -

  When you’re looking at a property that needs work itemize the things you would fix up, kitchen, bathrooms, fixtures around the house and compare it to properties that have sold that have those updates already. 

If you're just starting out you may want to lean on an agent in that area that has experience dealing with ARV's.

  Hope this helps and welcome to BP!

-Mike

I use it for a couple. Very easy and recommend it

The intelligent investor by Benjamin Graham - Warren Buffet’s mentor

@Shao Ya Xu

 There’s must have been a leak at the window at some point. Have your agent ask, they’re required to tell you that information and when/if it was repaired. 

At the end of the day it’s still a simple fix and I wouldn’t lose a deal over that. I’d find out when/if it was fixed and then get a quote to repair the window and drywall and ask for a credit towards your closing. 

Thanks,

 Mike

@Drew Slater

  Can you move out there and commute a couple days a week and house hack the other rooms?

  Then after a year look for something closer and have a rental property?

   Also in a similar situation working in the Bay Area and commute every day. 

  Don’t be afraid to look out of state either. Just do your homework. 

 Thanks,

Mike