All Forum Posts by: Rick Jenkins
Rick Jenkins has started 2 posts and replied 4 times.
Thank you all for your responses. Your advice is extremely helpful.
My wife & I are still very new to real estate investing but have informed our agent to look for small multi family opportunities. He has sent us a duplex that just came on the market. It states that it is currently rented with a waiting list. What information do we need to ask for so we can properly analyze the deal?
Quote from @Nate Sanow:
Hey way to inch towards step one. That’s awesome and welcome to the party! Okay. So, there isn’t a right or wrong here. For example good rentals might be a 2bed 1 bath house and that might not be what you want to live in. They might however be more affordable, make good sense on paper as a rental, and so if your options are DO NOTHING or get this hypothetical 2/1, get the investment.
Having said that, obtaining a primary is tricky after obtaining a portfolio. Not impossible but just tricky. Lenders for primary residences will want the portfolio stabilized, and will pick apart your DTI a little further. Of course, what lender you work with matters, and I'd recommend finding a super investor friendly lender in this future time you might be in, but, there's that.
Now, if you do obtain the primary first, one doesn’t have to be limited to house hacking via Multifamily. Buying a live in flip, knowing in two years your proceeds are capital gains tax free, is definitely a solid plan. Targeting something in the path of progress helps here, as you don’t want to just count on sweat equity but also probability of appreciation. Or, buying and moving out a year later, not a bad idea, especially if you use a low amount of cash for the down payment and you can save up quickly and in 12 months repeat the process and rent out the first primary.
I wish you well and hopefully you pull a trigger soon.
Hello,
My wife & I have started our real estate investing education and want to invest into long term cash flow residential properties. But we have a couple of questions. To start, I’ll give a quick explanation of our situation. We own our own stable business that provides our revenue, our credit is good and we currently rent an apartment for our living space. Our questions are these:
1) What comes first? You know, the whole chicken or egg dilemma. Do we buy us a house first or buy income producing property? We thought about house hacking but our area does not have many duplexes, triplexes or 4 plexes.
2) We are leaning towards buying income producing property first but then are unsure how we transition one day out of the apartment and buy a house for our own living space.
Any thoughts and advise would be greatly appreciated.
Thanks,
Rick