All Forum Posts by: Nicole Wood

I got an email on Friday from my mortgage broker that funded my last deal. We did an FHA loan for a duplex. He says there is a program called the FHA streamline refinance. He says no paperwork is required with exception of latest statement from the mortgage company. He states this will lower our interest rate into the 3% range (we are 5.5% right now!). He says there is no catch and it doesn't disqualify us from refinancing in the near future.

Has anyone had experience with this? I like the sounds of it but it sounds too good to be true!

Oh I know. Basically right now my mind set is...im not making anything but living in another house that is a house hack is saving me so much that if something breaks we will be okay. However, I will be selling that single family ASAP. We had it on the market for a bit but to break even with realtor fees etc we would have to sell for 99k. If we replace the siding on it and repaint the shutters and front porch we could get that but with aluminum siding it is not likely. I want to sell it within another 2 years due to the capital gains taxes we will face if we dont! 

Thank you!

THANK YOU!

Also make sure tenants know where the dogs can go to the bathroom and put it in the lease that they need to clean up after their dogs.

The only thing I have learned about large dogs is that you cannot rent out an upper unit to anyone with a large dog. We rent out to someone with 2 large dogs in our upstairs apartment at our duplex(we live downstairs)...it was not a well thought out plan.

Investment Info:

Single-family residence buy & hold investment in Bath.

Purchase price: $93,000
Cash invested: $500

My first home. This was purchased before I found financial freedom. I was 21 with 2 kids and needed a home. I was a registered nurse and thought "this is your next step" following the same pattern as most Americans. I bought the home for 93,000 which included closing costs rolled into the loan. This was purchased using USDA guaranteed loan When I discovered financial freedom and was able to buy a duplex I did so and moved out of this home. It currently rents for $900 and the mortgage is $805.

What made you interested in investing in this type of deal?

I was following the standard "American Dream" steps in life.

How did you find this deal and how did you negotiate it?

On the MLS no negotiating was done unfortunately. ( I was 21 and naive)

How did you finance this deal?

USDA guaranteed loan

How did you add value to the deal?

Remodeled a few rooms. This home needs more work prior to selling in a few years. First and Foremost it needs VINYL SIDING!

What was the outcome?

Still renting, not truly cash flowing but covers expenses

Lessons learned? Challenges?

Negotiate every deal, no money in is not necessarily a good thing especially if its a single family home.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lori Rouse was the realtor and she was wonderful in every way. I am sad she has since retired and moved to Florida.

Investment Info:

Single-family residence buy & hold investment in Bath.

Purchase price: $93,000
Cash invested: $500

My first home. This was purchased before I found financial freedom or real estate investing. I was 21 with 2 kids and needed a home. I was a registered nurse and thought "this is your next step" following the same pattern as most Americans. I bought the home for 93,000 which included closing costs rolled into the loan. This was purchased using USDA guaranteed loan which requires no down payment. When I discovered financial freedom and was able to buy a duplex I did so and moved out of this home. It currently rents for $900 and the mortgage is $805.

What made you interested in investing in this type of deal?

I was following the standard "American Dream" steps in life.

How did you find this deal and how did you negotiate it?

On the MLS no negotiating was done unfortunately. ( I was 21 and naive)

How did you finance this deal?

USDA guaranteed loan

How did you add value to the deal?

Remodeled a few rooms. This home needs more work prior to selling in a few years. First and Foremost it needs VINYL SIDING!

What was the outcome?

Still renting, not truly cash flowing but covers expenses

Lessons learned? Challenges?

Negotiate every deal, no money in is not necessarily a good thing especially if its a single family home.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Lori Rouse was the realtor and she was wonderful in every way. I am sad she has since retired and moved to Florida.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Bath.

Purchase price: $68,000
Cash invested: $7,000

This home is technically a house hack. We live in one side of the duplex. The upper unit is one bedroom. The lower unit which we live in (with 5 kids) is a 2 bedroom (luckily a large two bedroom!). We are also renovating the home as we go. This did save us about $700 a month by moving. Technically with us living here we still pay $130 a month toward mortgage to live here however at our old home we paid $847 to live there per month.

What made you interested in investing in this type of deal?

Our numbers show that we can be retired if we own 15 units. In my area duplexes are common. Single family through fourplexes are allowed through the FHA. In new york state single families DO NOT cash flow typically.

How did you find this deal and how did you negotiate it?

This deal was on the MLS for 2 years prior to use purchasing it. It was negotiated from 79,000 after the appraisal was completed and repairs were found to be needed.

How did you finance this deal?

FHA loan

How did you add value to the deal?

We are remodeling currently. This week we are remodeling the kitchen. We purchased an entire cabinet set for $1900 from a building auction. Total we have around $4000 into remodeling the kitchen with brand new appliances, flooring, cabinets, trim, etc. We remodeled one bathroom so far as well. We painted the upstairs unit and shampooed the carpet. We will be adding a laundry room that can be accessed by both units after replacing the rest of the flooring.

What was the outcome?

Still renting.

Lessons learned? Challenges?

Having financing to complete the remodel is a must.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

We were not happy with our mortgage company or realtor during this transaction.

I have two properties. One single family that only cash flows $50 per month and a duplex that we also live in. I didn't buy the single family with the intention to rent it out so unfortunately at least the mortgage is paid every month with a little to spare. Right now I'm stuck trying to get my debt to income ratio reduced to buy another with another FHA loan.

Hello,

We bought a duplex this year and have been house hacking. I'm curious as to how tax deductions work in this situation? Since we are also occupying the space how does it work when it comes to mortgage, mortgage interest etc?

Thank you in advance.