All Forum Posts by: Pete Storseth

@Nicole Parnell

I would at least consider a HELOC or refi to see if you could get cash out to invest in another property. New Orleans would be a decent spot for AirBnB

@Nicole Parnell

Thanks for the info, I wont give up yet then.

WHO DAT, I love Louisiana.

If you dont know much about house hacking, are you just living in the house you got the 203k for? You didnt rent out rooms or anything to help cover the first year of payments? That's what i wanna do. Get the loan, move in and do some rehabs, rent out rooms or build a additional dwelling unit in the back or convert the garage into my apartment on the property and rent out the whole house for rent exceeding my monthly payments. Cash flow, not day one, but eventually. Then, refi, rent out my unit, and repeat. HOUSE HACK + BRRRR

@Mark Durham

Yep. You know it. Door slams were my favorite rejection, quick and painless.

In this business, starting out at least, I will probably learn the most from the tire kickers though.

I hated them before, but it will be good practice.

@Jerel Ehlert

It does. Thanks

Looking for a Texas lawyer to work with. May reach out soon.

Has anyone ever done this, or considered it?

Buy a property with some equity in it.

Rehab it modestly, add more durable features, maybe a nice upgrade like a garage/second living room conversion, patio, or jetted tub.

Rent it out at appreciated rental rate.

Refinance, cash out at Appraisal that should have it over the original ARV.

(Set that cash aside for now)

Then, before repeat, off owner finance to the tenant at a new monthly payment right around their rents, collect 10% down payment on sale price slightly above the new appraised value.

(Take that down payment, and the cash left from the refi, and...)

Repeat.

But now, no overhead on a rental property,

investing sale into new property, avoiding capital gains tax,

and still cash flowing better than before, because no capex, repairs, vacancy, etc.

Sure every star has to align, but what a win! Is this too complicated of a strategy to make a niche?

Hello BP. My favorite place on the internet .

I'm a newbie, I dont have over 5k, I dont make enough to save 30 or 40k this year, but I'm committed to be a landlord... housing provider....

So the banks are out. FHA loans and their siblings have been just a little too far outta reach for my high DTI, and I get that. So, how about seller finance?

What I'm trying to learn now is what the realistic expectations I should have for finding a seller in the position to finance where they make their asking price, but only after interest is factored in.

Hmmm. Could be tough. Maybe they just want out. Maybe they hate landlording. Maybe they just need monthly income on a property they thought would cash flow more than it does, and it's a good enough start for me.

I am not waiting for this to fall in my lap. I'm going to start marketing next month with my constant studying and reading material now has me more (but not completely) competent in the strategies I can excel at.

I'm a face to face guy. I went door to door selling telecom for 7 years and I'm not afraid of it. So with a VA, flyers, and a list of doors to hit I think I have a small advantage to other newbies.

But the list I am most into is non-owner occupied. So what's the more realistic interest rate for retiring investors, tired landlords, etc?

@Nicole Parnell

I think 203k loans are great. Its probably stressful to work with the mandated contracting and Appraisal process, but what a great way to learn. Congrats on your 40k, a great amount to invest in step 2 and now it'll be easier because you've done it once and this time you have more control.

However, my bank didnt offer it. Chase has something called DreaMaker. The loan officer lost all interest in talking with me once I told her my income. Its deflating to my goal of house hacking to get the ball rolling. 203k and FHA are very similar, as I understand the only difference is that they roll repairs into the loan, and that's where the extra headaches come via requirements from the program itself. But it still gets you your house.

My problem was that my DTI is terrible.

My income averages 1380/mo

My debt is only 280/mo

But once you add in PITI, the banks dont have alot to work with. They take 50% of the remaining 1100 and show a 600 and change left for a monthly house payment and give up.

If you made about the same amount, did you have a good chunk saved? If I can make more money on the side, get a grant, and have enough saved, the down payment can help bring the monthly cost down enough to buy a very cheap house.

That was my plan. I am not even trying to get preapproval until this summer, and wanted to get a goal of how much to save. But these particular mortgage advisors didnt believe it was worth me planning ahead the way I imagined how wise it was.

How can you hit a goal if you don't have one? So, back to the grind. I live beneath average means, spend money on ONLY essentials, save every penny and keep studying. It would just be nice to have a specific loan to focus on getting and with a number to shoot for, try to accelerate the timeline as much possible.

@Odie Ayaga

Yeah the ones I spoke with have hefty prepayment penalties. No refi, no BRRRR

@Scott Rogers

That's my life now.

@Lindy Pond

My income is too small for banks, owner occupied isnt something the lenders I've spoken with allow at all, besides I'd need 20% or more down.

My goal is to hit the field, search for motivated sellers and once I have a deal, decide the best action.

I'd love to get a lender of some sort finance the down payment and basic rehabs, the seller pay the closing costs, raise the rents with market appreciation, and then go to a bank and refinance. But the bank I went to today didnt seem optimistic about refinancing.