All Forum Posts by: Kyle M.

This would be either straight rental or owner occupy with a FHA loan with the ability to rent it out in the future (I'm looking for my first purchase). I have looked into multi-family but am not finding any deals in areas that I would want to live personally. The lot size is 700 square feet and I am unsure if I would have the ability to add a bathroom or if it would be worth it if I could still get 3br market rent.

No major improvements would be needed as a necessity. One possible future improvements could be to get C/A or add a bathroom (like you mentioned).

Even if I could get $1200 market rent and haggle this down in the mid 90's, it would show positive cash flow. There is new construction taking place a block over and is in a market that is on its way up.

Hello all,

Does anyone have experience with renting suboptimal bedroom to bathroom ratios? I know in general they are bad ideas, but I feel as they are looked over by a majority of investors. There could be some value in scooping up these properties.

To start off I am from the northeast where most of the properties are 3/1,2/1,3/1.5 etc.

I found a property with the following characteristics and want to see what you guys think of it. This property is in a appreciating neighborhood with new properties valued $300,000+ and new construction is being built with the bedrooms and bathrooms being equal.

The following is a recently renovated home which needs no major improvements.

4br/1ba
$110,000

Median market rents (according to rentometer)

2br - $1000
3br - $1350
4br - $1600

Good deal? What are your thoughts on this property?

I got pre-approved for 3.37 FHA, I'm somewhere in the 800's in terms of credit.

Lets assume the basic info is as follows:

2br/1ba
600 square feet (Less than I stated before)
Asking Price: 100k
Total Estimated Repairs: 15k
Could rent for once repairs completed: $1000 (at least)
ARV: 125k

Now I do not (as of now) plan on renting this out as it would not cash-flow. Although, I do feel as there is some value in owner occupying, performing repairs, and then selling it at a surplus.

Do you have any advice on where my initial offer should be given there are no unexpected problems with the property?

Are you guys normally working with the selling agent in this process?

I have been working with my agent and our intentions seem to contradict at times. While I am trying to get the best deal, he is trying to sell me on getting my offer as close to asking as possible so its quick and relatively painless for him.

I get where he is coming from because obviously he does not want to waste his time with offers that have no shot.

I am new and need the guidance of an agent that has my best intentions at heart. Not to derail this thread, but what is the best way to approach this situation so I am not wasting my agents time without ruing our relationship?

David Krulac - thanks, I plan on using an FHA mortgage, but I had no luck with the property that I viewed.

I'm starting to think that all of the multifamily properties that are a "deal" in my area are not going to be up to my standard of living. Not that I need to be in a great upscale area, but the properties that are deals are in BAD areas. The select few in good areas are flooded with investors and can work faster than me because they have more experience and I'm sure some do this as a full-time job. I'm still on the lookout for multifamily deals in better areas, but my thought is that I am going to have to change my approach. I'll rent in slums, but I can't live in them.

So I saw a house in an up and coming area 2br/1ba (I know) that is going for 100k. It is going to need some work (slight bathroom remodel, kitchen tiling, new laminate flooring, new upstairs carpeting/laminate flooring, central air, new door, and a few other repairs). But it was renovated 10 years ago and is structurally in good shape. I'm having my realtor give me the comps, but I'm feeling that similar properties in this area sell for 125k.

Please inform me if I'm wrong on my estimates and my statement is greatly unfounded and I have next to no experience. My assumptions are that a complete remodel on a 2br/1ba 1000 square foot house would cost around 30k. Now this house is in good shape but will need some repairs, so I'm assuming around 15k in repairs. So the 10k in profit seems like a good deal. This coupled with the properties appreciation seems to me like there is a great deal of opportunity.

Also, I spoke to my realtor and he said because of the good location I must work fast. So the process would be see the house, put an offer on the house, get the home-inspector, and then get estimates from general contractors. This seems to me that I would by flying a bit "blind" without first getting estimates from GC's before I put the offer on the house. Is this correct?

Any thoughts on this situation would be greatly appreciated, thanks

Going to see my first property tomorrow. Duplex containing 2br/1ba in first unit. 4br/2ba in second unit. Gross rent estimated 2k and unit is going for 210k. Hoping to get it down to 160k minus any repairs. I would like to add laundry hook-ups and washer/dryer in at least my unit, possibly both.

Any last minute suggestions on what to look for on first visit?

Wish me luck!

Andy Bankston haha, the only gambling I do is within the markets. But ya I was thinking the same thing. I have a much better idea of what I want than my realtor who I have only spoken to a handful of times anyway. Plus the last thing I want to do is waste his time, thanks!

Qualified for FHA on multi-family property at a very low rate! I think I have found a relator who I will work well with. I have communicated exactly what I am looking for and there is a huge upside for him because there will be multiple home purchases.

Once I purchase my first property using FHA loan, there WILL be a second investment property purchased shortly after. I have found about ten homes that fit the 2% and 50% rule. Now the trouble is finding a multi-family that is profitable and in a decent place to live. I hope the relator can work their magic!

ill check that out, thanks David!

yea, I talked to a different mortgage company. They explained that quickenloans doesn't work well for those type of purchases. I'm in the process of getting pre-approved for an FHA on a multi-unit with a different lender.