All Forum Posts by: Ryan Rogers

I do plan on long term holding the Tacoma property. I just dont know how much I would have to pay in capital gains later down the road if I ever did decide to sell. 

Thanks,

Ryan

Hello BP,

I bought my 1st home in August 2017 FHA 3.5% down. Initially just to buy a home and not to invest. However, I have been on bigger pockets and have became really interested in Real Estate investing. I lived in the home for two years and this is now my 1st rental and I am not cash flowing this property. I currently receive about $108 cash after all PITI. Not including vacancy, repairs, ETC. My goal is to get into multi family and potentially buy a 4 plex. I currently have about 65-70k of equity in home. Leverage makes me nervous, and it doesn't make much sense to REFI to get all PMI off because my market rent is about as high as it can go, maybe another $50-100 according to rent o meter/zillow/craigslist. So I am thinking I should just sell the home, take the cash, and throw it onto my next multi family this summer.

Currently, I am house hacking my home in Tacoma, WA. I have 3 roommates, and I don't quite live for free, I pay $279 a month after all PITI. But who can say they live for $279 right? This home I am confident will cash flow as I ran the numbers many times once I move out.

After living in this home a year (Nov) since I bought it as a primary residence 5% down. I would like to move into a multi family from the 1st rentals equity. Is this smart? The tenants are great and are on a month to month lease. I can maybe raise the rent another $100 to continue loan pay down and a bit more cushion for expenses/vacancy. Should I wait another year in the Tacoma property to avoid all capital gains taxes in case I ever sell the Tacoma place?  I guess I would just like some advice on what to do with my 1st property that is just sitting in equity and not being used when my goal is to get into multi family and scale higher with more doors.

Thanks for all your advice.

Ryan

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*This link comes directly from our calculators, based on information input by the member who posted.

Hello Bp,

I have this house I am going to look at near me. This is with conservative rent and after 10,000 in repairs which I am sure and have visited the property with a inspection will cover it.  Who you take this deal as your 1st investment? They are asking 190,000 but property is being foreclosed on and was extended to March. Rent could bump to 1,700 and the 5% on vacancy, fixtures, and cap ex is after all repairs. House built in 04. I will be self managing this property as well.

Let me know. I would love to hear your thoughts!

Ryan

Hi @Cassi Justiz,

Those are all great points. I think the best option is for me to keep living at lower expense life style and throw some money monthly to the principal to begin to try to earn some equity. Once I can remove MI which is 156 total. I can explore more options. Heloc, and or Refi. If I can get any additional 156 less of expense that would help my ratios. I may also factor in renting to section 8 and screen tenants real thoroughly to best avoid risky tenants. 

Thank you so much.

Thanks for your input @Thomas S.

Hello BP,

I have some questions for you guys. In August of 2017 I bought my first primary residence. A double wide 3bd 2 bath 1456 sq ft manufactured home on a .25 acre of land. The home was not updated and the listing price was 189k. This was going to be the 11th home I would be putting a offer on in the last 5 months because of the hot market here 40 mins south of Seattle. 

I qualified for a 230k loan FHA and offered that amount for this home. Homes around that prices were the ones I was getting outbid on so I initially offered high to get in a home because I was paying 1700 for rent. (Emotional

I financed the loan FHA and paid half of closing costs putting me at around 11,500 total for out of pocket money to get into home. Since I have renovated home with flooring, carpet, paint, trim, double pane windows, new deck, new light fixtures, water heater, furnace. I had no intention to flip this house. Just updating for myself and potentially renting. Another 10k out of pocket for renovation.

However, my mortgage including PITI is 1,523 a month including MI for term of the loan. Rental rates to be on average 1,550-1800 in this neighborhood and renting out the property would not give me much cash flow if any. I currently house hack the home with friend and cousin so my out of pocket expenses aren't much.

The zillow zestimate on my home is 247k. My goal is to buy and hold rental properties for cash flow but I feel like I have ran into a dead end here. Should I hold and refi into Conventional with a higher interest rate to eventually remove PMI and to open up another FHA loan in the possible future? Do I sell and get into a better deal since I over paid for this one even though my house hasn't built much equity? Or do I hold onto this one and let the market take control and hopefully build equity? I can now qualify for much more due to new job, less debt, and wouldn't mind house hacking a duplex and or BRRR strategy SFH. My friend and cousin will be coming with me to my next property as well to reduce expense (On year leases) Sorry I know this is a long post, I just would like to dive into a new strategy because I have capital saved to go into next investment, I just need some guidance with this one. What would you do?

Thank you,

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*This link comes directly from our calculators, based on information input by the member who posted.

1st investment offer? Buy and Hold

@Greg Miller

Hi Greg,

It's actually a manufactured home on its own land 30 mins south from Seattle. Currently will appraise for around 250k. Sitting at 230 but is only qualifies for conventional financing and that is limiting buyers. Foreclosure and needs new furnace, toilet, flooring, and paint. Cosmetic.

Hi @Jaysen Medhurst,

I updated some of that on my newest post. No management as I will landlord it for my few investment properties. Utilities tenant will take care of. 

Thanks for your input

Ryan