All Forum Posts by: Mike Shahi

I've done both FHA and conventional and there was no penalty for paying off athe mortgage early

140k-300k in DC? Tell me where

Thanks! I'll pick it up- I'm also listening to the BP Podcast with Joe Asamaoh- he's from my area- he briefly touched on this topic- he said he's been through quite a number of cycles with the market and gave some good advice

So what happens when the market tanks and the house you refinanced for $250k is now valued at $180k? 2008 anyone? 

Do you just continue to hold, rent and hope for the best? 

For the people who BRRR'd in 2004, 2005 etc etc up until the market took a turn- how did you deal with the crash? Advice please

Couple things....

Submit strong offers and see what happens- even "off-market" deals are going to have hundreds and hundreds of people who will show interest- the email blast is not going to just you. I've learned that the more and more you get involved in this business, your network will grow and people will eventually reach out to YOU personally when deals become available. My friend who flips in DC rarely looks for deals- he has a huge network of people who call him when deals come across their desk. He's done so many projects that realtors/wholesalers etc have HIM on speed dial

I was originally focused on DC (buy 250-400- ARV 550-650) than realized that most of the homes that came across my Inbox needed major renovation (gut jobs)- and of course competition was very high. This was to large of a task for me to take on given my level of experience. So I changed my budget to 100-200 with an ARV of 250-350 and focused on Baltimore. Outside of the Inner Harbor and a few spots downtown, Baltimore is all unfamiliar territory. I didn't feel comfortable relying on others opinion. So I stepped back and decided to focus on what I know- PG County. It fits my budget, most of the homes just need minor updating/lipstick and the buyer pool is much larger given the "cheap" prices. These types of homes don't require high end renovations and you can get away will builders grade carpet, fixtures etc...

I've also looked at investing out of state but like Baltimore, all unfamiliar territory and a weekend trip won't tell me much- but boy are the deals tempting. I follow a realtor on Twitter that posted a 12 unit multi in St. Louis for 225k in a C/D neighborhood with a $450-$500 rent rate- woohoo

Don't get frustrated and more importantly don't give up! 

What part of DC is she going to be working in? What's your budget? A "safe" area in DC will run you $2000+ for a 1 bedroom apartment (fort totten for example)- prime location like the waterfront, navy yard, U street etc- forget about it- $2000 for a studio- 1 bedroom $2500+- some may push closer to $3000 a month

 15-20 minutes away in Greenbelt will run $1500 or so for a 1 bedroom apartment

Silver Spring- Wheaton- College Park are all close by and run the same- $1500-$2000 a month

great info @Ari Bachrach this really helps!

@Vikas Chug contact @Russell Brazil ...his group holds a meet up once a month I think

That's about what I have to invest- I'm looking to do fix and flips. Right now I'm focusing on what I know (Michigan Park, Fort Totten, Petworth, Trinidad). An as-is home in these neighborhoods range anywhere from $400k-$500k- ARV is anywhere from 550k-850k.

I'm also looking into Deanwood, Takoma Park, Hyatsville, Mt Ranier. I've seen stuff in these neighborhoods for 200-300 with an ARV of 350-400.

Montgomery county is another region I thought about investing in but finding a distressed home in this area will be hard. 

Were you looking to buy and hold or fix and flip? What's your budget? How will you finance your purchase? Hard money loan?

@Shelbie Beeson How long have you lived in your current home? You said you put down 3%? I'm assuming your current loan is an FHA?

You can also rent individual rooms instead of the entire house

My mortgage for my previous SFH was $1300 a month- I rented the basement for $800 and 3 bedroom/2 full bath upstairs for $1200 a month. Basement had a dorm kitchen and was a walk out so the upstairs tenant and basement tenant never interacted.

I always made sure whatever house I purchase had a walkout for rental purposes. Even in my current home, I rent the basement and live upstairs. Her rent almost covers my entire mortgage :)