All Forum Posts by: Rolando De la Cruz

This question might be broad but I am talking specifically between the seller, the lender and the realtors. If I am getting a primary residence mortgage loan for 3.5% down,  Is the lender allowed to know that I plan to rent the other rooms? Also, after 12 months, could I move out and repeat the process in another property with 3.5% down? 

I am looking to get my first deal this year and trying to learn as much as I can, thank you for reading this post!

I understand there is a lot more to think about and thanks for reminding me. The rent would be $550 per bedroom and the utilities would be split in 4 (all the tenants plus me).That was just a surface level analysis for that property and I was wondering If a FHA 203(k) loan would be ideal to cover for the remodeling while keeping in mind the HVAC would need replacement sooner than later. The house was built on 1950 and HVAC units on average last 15 to 25 years, so unless it has been replaced in the last 5 to 10 years it would be something to keep in mind. I estimated the down payment with the closing fees would be around 12k and I could finalize saving that after I start my new job as a Project Engineer for a multifamily construction company next month. I was going to set money aside every month to cover capital expenditures but I will consider having at least 10k in reserves before finalizing my first deal.

My goal is to get my first property before 2024 ends if that same property is still available 3 months from now that would be great, if not I will move on to the next one. I just didn't know how the finances work when remodeling is involve, I have some experience with construction and I could do some of the stuff, but ideally I am hiring someone to do the bathrooms and kitchen.

Hey Everyone,

I just graduated college with no debt so I want to buy my first property and House Hack with college students, I found a property currently selling for $175,000 dollars, but I think It can be negotiated to a lower purchase price since it is a little outdated and the other houses in that same street have sold for less money, although it is outdated it could be rented for $550 dollars a month + utilities and since it is a 4 bed, 2 baths; renting out the other 3 bedrooms while I live in one of them would help me break even with the house's monthly expenses. Now if I remodel the kitchen, bathrooms, doors, windows and some other stuff I could probably rent it out for $650-$700, increasing my cash flow, specially when I move out. I am not sure what the ARV would be, specially because the other houses in that street currently have a lower value than what this house is listed for. When it comes to the finances I am planning to get a first time home buyer FHA loan with 3.5% down and when adding the closing fees and all the other fees we are looking around $12,000 dollars out of pocket. My question would be is it recommended to remodel some of the house? if so, is it recommend for me to get a different loan that will cover the remodeling or should I pay that out of pocket, or should I seek for a FHA 203(k) loan?

I played baseball at the college I am trying to rent out so I spoke with the coaches and they will recommend players to live at this house. I understand vacancy can increase during June-July so I will budget accordingly to cover those months. I am planning to keep the property long term. If I missed any important details feel free to ask and let me know your opinion.

Thanks for reading this post!

Hello Bigger Pockets Community! My name is Rolando De La Cruz and I live in Texas. After listening to the podcast for over a year and finally graduating from college with no debt, I think it is time to take my first step into buying my first property by the end of 2024! I intend to house hack for my first deal and slowly build up my portfolio as I keep working as a Project Engineer for a multifamily construction company in Austin. When the time is right and I have more experience investing and a bigger network my goal is to flip houses on a more regularly.

Excited to learn and connect with you all and glad to help in any way that I can!