All Forum Posts by: Nicole Galchutt

All of the above and be sure to factor in your maintenance fees which can be quite high and do double check whether fee simple or leasehold. 

I’m in Bend Oregon where it sounds like it checks all the boxes except affordability. However just outside of Bend in Redmond there are duplexes etc that you could house hack but still at a bit higher purchase point than you might find elsewhere. Best of luck! 

@Brandon Goldsmith

Agree with this.

Even though prices are high there, renting is very tough to just find a place and you can also expect high rents. So if you are going to live there I would def take advantage of house hacking and after 2 years (get your capital gains exemption) I would consider selling if you had some good appreciation and then invest in the Midwest.

Many homes there are set up with “Ohana” units and converted garages to living spaces so it’s pretty easy to find a good house hack home. Best of luck!!

There is one this coming Thursday July 14th. Check out the FB group Central Oregon Real Estate Investors :)

I'm not sure on the answer but if it were me, I would disclose. With the rental market being crazy there anyway I don't think it will make an impact on getting a quality tenant. Good luck with getting your real estate license!! 

Hi Mike,I am currently working as a lender with a Canadian buyer for a Hawaii investment property- some things to keep in mind in terms of financing if this can be of any help. The rates are going to be higher for a foreign national- it you have no US credit expect rates to be more like 5-6%. Most loans will also have a minimum of a 30% down requirement. Let me know if you have any lender questions, happy to assist!

Investment Info:

Single-family residence buy & hold investment in Madison.

Purchase price: $170,000
Cash invested: $42,500

3/2 SFH Renting out to a section 8 voucher holder for $1650/mo

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

The city requires a rental license for long-term rentals so the market is not flooded with rentals. Section voucher limits for a 3/2 are at $1700 so the numbers work. Being long distance this area is pretty easy to fly to via Jackson and the maintenance is low in this southern area. Having a section 8 tenant for long distance and self managed seems to be lower risk and working at very well so far!

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

After studying the area for some time, I connected with a great agent and went out there to look at some properties and get a better fell of what I wanted. Once that home hit the MLS we put in a full price offer and snagged it.

How did you finance this deal?

Conventional 25% down (could have done 20% but got a better rate with that extra 5% down)

How did you add value to the deal?

It was pretty turn key basic home. I just needed to get the city license which was a bit of a process but got it.

What was the outcome?

Getting nice direct deposits from section 8 monthly and have a very happy tenant that is so grateful to have her kids attend the schools in that area as they are top notch.

Lessons learned? Challenges?

I had thoughts of updating the home but at the end of the day I would have gotten the same rent if I have a section 8 voucher holder so I wasted a bit of time researching updating costs that were not needed. I have learned what the city looks for in their inspections for licenses, after failing the first inspection and needing a second I feel confident when I purchase another rental there on what is needed to pass the first time around.

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

Worked with a great agent that I would be happy to pass on. Lender was not so great so actually went out and got my license here In Oregon and will be adding MS to my states I can lend in and so will be my own lender on the next deal there.

Also, noticed your career on your bio- you may be able to qualify for the HUD good neighbor next door program. If you aren't already aware of it check it out- https://www.hud.gov/program_of... . Not many listings ever available and in random areas that need revitalization but it does give you 50% off list price if you are able to secure a job as a firefighter in that area and commit to being there for 3years...Sounds like you are looking to go out of state so might be worth looking to see if any thing looks doable :)

Did you purchase the home when it was built in 2018? Also- have you looked into short term renting or rent by the room- basically explore all options to increase your cash flow if you held it. 

What is your interest rate? You may be able to benefit from a refinance and you could potentially do a cash out refinance as well. I am licensed in Oregon- happy to help answer any questions you might have :)

Is that an investment loan? If so that's a good rate. If its an owner occupied loan I would say you could probably get a better rate.