All Forum Posts by: Patsy Waldron

I was going to suggest getting an FHA loan with 3.5% down, since you plan on continuing to live there. I see someone has already suggested this. It is a good plan under the financial circumstances (assuming your cash reserves meet the 3.5). But be prepared to pay PMI.

Sounds like a very good deal and you have a solid plan! Good luck.

I will just add one (not so) small thing- with a well-paying, full-time job, you will be able to get loans more easily and cheaply on those buy-and-holds that you want. Nothing like regular paychecks to make underwriters happy! You can get much lower interest rates with a W-2 job than you ever will self-employed. 

From what I have seen, many out-of-state investors like the Midwest and the South. Ohio/Indiana/Kansas seem to be top in the Midwest, and Florida and Tennessee seem to lead the pack in the South. You need to figure out what you are comfortable with in terms of price point (Midwest is more affordable than the South, esp. FL), distance from your investment (many people seem to want to be within a day's drive from their investment property), and finding a good property manager. There is a wealth of information about the dos and don'ts of out-of-state investing and literally hundreds of threads on BP about it- people discussing best locations, sharing successes and horror stories, giving recommendations, etc.

Thank you for starting this thread and discussing what seems to,me, too, to be glossed over in all the gushing over real estate investment. I am a novice investor and a naturally cautious (though not entirely risk averse) person. I have scoured the site looking for cautionary tales or advice on what risks to avoid and how, and there is precious little. There is a natural selection bias on the site in that those who got burnt are not here to tell their stories, so all we hear are the success stories (which are helpful and inspiring, but would ideally be balanced by failures).

@Jonathan Godes

Actually, if you follow the link @Account Closed

 This link will take you to the 2013 HUD press release, which explains what is expected in the case of service animals. Here is an excerpt:

"Pet restrictions cannot be used to deny or limit housing to people with disabilities who require the use of an assistance animal because of their disability. Housing providers must grant reasonable accommodations in such instances, in accordance with the law. The guidance also describes the Department of Justice’s revised definition of “service animal” under the ADA, as well as housing providers’ obligations when multiple nondiscrimination laws apply.

The Americans with Disabilities Act requires equal access for people with disabilities using trained service dogs in public accommodations and government facilities. Under the Fair Housing Act, housing providers have a further obligation to accommodate people with disabilities who, because of their disability, require trained service dogs or other types of assistance animals to perform tasks, provide emotional support, or alleviate the effects of their disabilities."

Hope this helps.

Search BP for HUD threads. One of the first that will come up is one where someone was giving advice on bidding on HUD homes. In a nutshell, his advice was to offer 89% of ask price, which he said had a very high likelihood of getting your offer accepted. Good luck!

Thank you for sharing your experience! I admire your persistence and your wife's insight. The real estate investor's journey is a tortuous but incredibly mind-expanding one. I have put in offers on properties that I later felt grateful did not work out for one reason or another (usually because they are deemed too low by the seller) BUT I am super glad for the education I am gaining by analyzing the numbers and the properties themselves.

Congratulations on finding and snagging the second deal, and best of luck going forward!

I suppose you could include a clause in your lease that the tenant is responsible for the condo or HOA fees, but typically things like that are the owner's responsibility. Think property tax and insurance.

Everything I was going to say has already been said, so I won't repeat it... But what @Sam LLoyd mentioned about shoes is absolutely key!!! I usually wear business casual, which is my everyday normal, but when I am going to visit a property, I make sure my shoes are flat, have good grip, and comfortable. I would hate to have to climb some pull-down attic ladder with wedges on, lol.