All Forum Posts by: Nicholas L.

@Emanuel Eyssallenne welcome.  Do you have any specific questions?

@Michael Mackney it's going to depend on your goals and timeframe. Do you own or rent now? Can you move? Can you house hack? House hacking a small MF is a powerful way to get started. Sometimes you can combine that with the BRRRR method even with financing.

@Michael Mackney it can still work, it's just a lot harder to do for several reasons. Here are a few: you'll spend more money if you buy with a loan due to financing costs, thus making it harder to get as much cash back out when (if) you refi; your offers won't be as competitive, since you'll have a financing contingency in them; and properties that banks will finance don't generally need as much work, making it harder to get the ARV up.

@Scott Gordon

Things that come to mind are: getting pre-approved (is this always necessary?), 

Yes, you need to have either cash or financing lined up.  If financing, your agent will want to see a pre-approval letter from a bank.

opening a business checking/savings account, etc.

No

I have a realtor who has been great in giving me tips and suggestions 

Is this realtor your agent, or just a friend?

This specific property has existing tenants (15 year and 2 year...it's a duplex)

Get copies of the leases 

Would it be smart to bring a contractor with me on the tour to be able to give me rough ideas for how much renovations would cost to make an informed decision? 

If you can get one, sure

Anything I should ask the selling agent prior to touring the place to identify any causes for concern before wasting their time touring the place?

Typically your agent would work with the selling agent.  Do you have an agent?

@Christian Kim does the $18K include the down payment?  Post a screenshot

@Jennifer S. just to get more specific, have you had any specific issues?  Are your properties still cash flowing?  Do you have high quality tenants?

The risk factors to me were turning a SFH into 9 units; the high purchase price; and your statement that it "Must appraise for $890K to be able to...pay back my investment."

@David Lengeman this seems like a high risk deal.  How would you finance?

@Leanna Abu

1. No.  The first mortgage payment will be due when it's due.

2. You should analyze every deal individually, the 70% rule is just a rule of thumb.  Depending on the property it might cash flow at a higher or lower purchase price.

3. Yes, but if you use all sorts of financing, it will be very, very difficult to recoup your funds when you refinance.  Financing costs money.

4. Talk to a local agent that works with investors and look at comps - comps are what you're aiming for.

@Cassidy Burns I totally agree, just wanted to make sure I was looking at the numbers correctly.  It's a great investment in the long term.