All Forum Posts by: Nathan Gogo

Just finished reading the book.  Loved it!  It goes full circle by touching on a lot of subjects.  Well done, Scott & BiggerPockets!

What do you mean by accounts 1% of your student loan?

Hey @Kyle Shaw!  Welcome to BiggerPockets!  Glad to have another Austinite on the the site.  Watch the BiggerPockets podcasts and I recommend going through some of the books.

The Ultimate Beginners Guide to Real Estate Investing is a great tool.  I really enjoyed Brandon Turner's Rental Property Investing as well.

https://www.biggerpockets.com/renewsblog/2013/04/14/best-real-estate-books/

@Mike Austin,

Welcome to BP! From what I understand, you can only hold one current FHA loan at a time. However, you can use a FHA loan on a property, eventually refinance it into a conventional loan or different method of financing, and then purchase a new property with a another FHA loan.

Hi Katherine,

Congratulations on the new addition to your family!  Right off the bat, this looks like it has potential for decent cash flow.  As far as your questions:

1) HA! You're not crazy at all.  What you guys are thinking of is admirable, even!

2) I've been told that it's all what you and your family's tolerance levels are. 5 people in a 2br/1ba will definitely be quite tight. However, like you said, it's a temporary situation. You could also purchase a SFR with the intention of using it as a rental property after short period of time and renting it out after moving.

3) FHA loans will allow you to put as little as 3.5% down on a property. Plus, with an FHA loan you can take advantage of a 203k loan which allows you to bundle repairs on the property you'd like to make into the actual mortgage. So, let's say you'd like to make 10k in repairs. That means the purchase price would be 119k and you could put down 3.5%. That is about $4,200.

4) I have not done house-hacking myself, as of yet. It's well known for being a popular way to get your feet wet with being a landlord and property manager.

According to your numbers Cash-on-Cash Return in about 7.5% per year once you get it rented out.

212 * 12 = 2,544 / year 

2,544 / 33,750 (money invested) = 7.5%

Depends on what type of return you're looking for.  Obviously if you can get it rented for more than 700 then this will be higher.

A couple question: 

I'm curious, are you using a 203k loan for your rehab costs?

What type of interest rate are you getting on your conventional loan.  212 cashflow seems low to me.

Welcome to BP, Alex!  Congratulations on your new investment! This is a great place to learn and network with other investors in your area.  Take advantage!

Hey Patrick,

My initial reaction is that cash flow potential looks pretty solid with this investment.  Put together an organized analysis and look for a private money lender in your area.  Have you funded your previous properties all on your own?

@Shane Blackshear Definitely frustrating.  Good luck to you.  I'm looking for more meet-ups in Austin too.  If you find anymore, please share!

Gotcha.  Glad the first one is working out for you.  What's not great about the second one so far?  

@Shane Blackshear