All Forum Posts by: Nicholas L.

Hi @Bianca Nunes welcome!  I think Fredericksburg, VA would be a great place to do this, but since you work in DC, the commute might be tough.. although lots of people happily take VRE or Amtrak from there.  =)  Fredericksburg is growing, has proximity to the Quantico base, and the 95 HOV lanes are being extended:

http://www.virginiadot.org/projects/fredericksburg/i-95_express_lanes_fredericksburg_extension.asp

I tend to agree with @Adrienne Green that JUST OUTSIDE Fairfax County is the best place to do this (in VA), but I bet it's also possible in a few closer-in areas, such as Springfield or Alexandria, where there might be "diamond in the rough" older houses and where your commute might not be too bad (train or Metro).

I know a fabulous agent in Fredericksburg if you want a recommendation.

@Todd Dexheimer @Joe Splitrock agree on SFHs. It's so funny, because every other WSJ article on real estate is about how millennials are flocking to the city, and every other is how they too long for an SFH in the suburbs. So perhaps both are true? The US is a big country - there can be demand for houses in the suburbs and houses in cities without contradiction.

@Reed Meyer I love this question, and I love books.  I intend to invest mostly in RE, but I really found Kristy Shen's book, and life story, inspiring.  Here's my list:

• -Buy, Rehab, Rent, Refinance, Repeat by David Greene (RE)
  -Real Estate Investing Gone Bad by Phil Pustejovsky (RE)
• -Investing in Real Estate by Gary Eldred (RE)
• -Quit Like a Millionaire by Kristy Shen (FI)
  
• -Playing with FIRE by Scott Rieckens (FI)
• -I Will Teach You to be Rich by Ramit Sethi (FI)
  -The One Thing by Gary Keller (Inspiration)
  
• -Am I Being Too Subtle by Sam Zell (Bio)
  
• -Shoe Dog by Phil Knight (Bio)
• -The Big Short by Michael Lewis (Business)
• -Liar's Poker by Michael Lewis (Business)

@Eli Kallison got it, you're saying you don't know how much you're going to get approved to borrow.  If possible, talk to multiple lenders, and try to put down as little as possible.  Cash is precious, you need it for spending, for reserves, and for future investments.  

Hi @Eli Kallison just curious, why put down 80% and tie up that much cash?

Hi @Alex Ramirez I agree with the other posters who said that it's best not to pressure.  But I'm curious if real estate as a path to FI would be of interest.  Check out "Playing with Fire" on Amazon, or Kristy Shen's story, or Paula Pant's podcast.

Hi @Matt Wells first, is this truly $550 net a month after all expenses, including vacancy, Capex, etc.? Or just after PITI?

Second, I don't recommend paying down the principal - if it's cash flowing, and you have a good interest rate, no need.  What if you put some of the proceeds into the market as @Marian Smith suggested, and the rest in a savings account to save up for more real estate?

Hi @Hobart King is this coverage for while it's being rehabbed and/or vacant, or is this a landlord insurance policy for while it's occupied by renters?

Hi @Justin Young the 1% rule is a screening rule of thumb, whereas a full BRRRR calculation involves many more variables and is a lot more comprehensive. Based on the scenario you described, this might be a good deal, as you got all of your cash out (minus some smaller items like finance and holding costs.) If cash flow were positive at $750 a month, factoring in ALL EXPENSES, great - move on to the next deal. If cash flow were tight, maybe not. You have to take educated guesses at both your ARV and your monthly rent before you buy... you won't know the actual ARV until it's appraised, and you won't know the actual monthly rent until it rents. =)

Hi @Sieanna Ariel if you haven't already, you can talk to a few lenders and have them run a few different scenarios for you so you can see the monthly outlays and how much cash it would take to close. Pick a couple of the big banks, and maybe someone local to you as well. Even if you don't have the cash for a 20% down payment, you can still ask for a quote, so you can compare FHA vs. conventional. You can also ask the lenders what type of improvement to your credit score would get you a better rate, and then start working toward that. Good luck!