All Forum Posts by: Michael Webster

Well depending on the progress on the property you've already got going, maybe you could borrow on the equity in that one to put towards paying off the HML at the new purchase? You could also look for a co-signer on the refinance for the new place. Lastly, look for an investor...possibly even the seller of the property you're buying. See if they will finance the deal for 5 years and explain that after you're done they'll hold a first position on a property they know but soon to be in better condition.

You can shop around a bit for HELOC's. TD has a 4% rate (though they'll push 4.5%) but they'll do almost 90% LTV. Gorham Savings is the lowest I've found so far lately (brick and mortar) at 3.5% and an 85% LTV. Really depends what you're looking for. Obviously if you can avoid Hard Money than you'll have a better shot of making more on your flip.

I'm always up for that as well.

Welcome to BP Sophia.  The podcasts and books will do a better job getting you going than any of us can in a small reply, but let us know where we can help.  

My biggest suggestion would be if you want to get casually into house flipping, buy something that is in rough shape, but finance-able, and live in it while you flip it. If you can stay there for 2 years, great (huge tax savings)! Use an FHA loan and put down 3.5%, and then move to the next one.

Well you started off in a smart way (with a multi vs a sf) so you could always move on to another multi with another FHA loan. That's one way to do it if you're cash poor but have that 3.5%. Alternatively you could look into get a HELOC (Home Equity Line of Credit) on your current Multi. I know TD Bank will let you pull 89.5% of your LTV (Loan to Value), so if it's worth 200K, and your loan is 150K, they will lend you $44,750). You may not have that much equity yet if you only put down 3.5%, and I believe you need a year of ownership as well.

Just to be clear though. All of this is assuming you've got plenty of cash flow from the multi to cover both the mortgage due on it, as well as the HELOC. Don't over-leverage yourself and end up in a tough situation just because you're ambitious!

Let me know how I can help and I'd be happy to.

Welcome to BP Thomas,

Sounds like you've got a solid start, especially with your background. What are you looking for in terms of the next investment (flip, BRRR, wholesale, etc)? Are you looking for something you can finance traditionally or through alternative means (cash, private, hard money)?

Give us a bit more info on your target goal and we can direct you better!

I would say start looking for a buyer, or start looking for investors to finance the rest of it (maybe even another HML). Alternatively, if the deal looks bad to them and they won't loan the 100%, then maybe you should re-run the numbers on the flip and make sure you really know it's a good deal. Losing an EMD is not as bad as doing work on a property and losing money (though hopefully it won't come to either).

Ultimately, none of us know the HML you're dealing with, don't know their reputation, haven't met them in person and haven't seen the contract so it's hard for us to judge whether they are legit. But either way, definitely get your backup plan rolling. Good luck!

Hey Donald,

I think we need more info on this. Is there a contract between you and the HML? Are you saying that the HML has this deal...they are financing it...and they said they would also find a Buyer for you? Maybe I'm missing something but I can't imagine why they wouldn't just wholesale it themselves at that point. Do you have an EMD down on this property? Let us know and we'll do our best to help!

Mike

It really depends on what type of landlord you'd like to be.  I've found that tenants are actually better behaved when they know the owner lives next to them.  You'll end up having to be a little more casual about fixing items ("hey can you swing by now and fix {x}"), but you'll also get far less late rent checks. 

As far as quiet hours go, I would suggest doing that on an as needed basis.  I wouldn't call them "quiet hours" either.  I would go over, introduce myself, and say, hey I go to bed around 11:00 PM, but please let me know if I'm ever being too loud for you.  Here's my number.  That way you address your expected quiet hours, without adding some restriction. Also, if you have parties/bbq/etc, always invite them to come by. You'll do great.

Good call Megan! I would say your first step is to touch base with your bank and just see if you are eligible for a standard home loan (putting 20% down since the home you buy will likely not qualify for FHA). If you are, great, if not, then you know you need to use or find private money. Small steps are the key!