All Forum Posts by: Stephen Hundley

Buy the SFR and start investing in your future! Your interest rate on the car is really low. Get started as soon as you can!

I literally just did the same exact thing.  The underwriter did give me some flack but ultimately approved me.  I'll copy and paste the letter I had to write explaining my move.  They can suspect all they want but they can't prove what you're trying to do.  

"To Whom It May Concern 2/24/15

My wife and I have decided to sell our current home and purchase a home near family. We have an additional child on the way and with our work schedule it will be easier for us to manage our work life with the help from family. I realize that we are downsizing our home but have plans to add on and update property."

Not all of this was 100% true but it's what our lender recommended we write.   

Hahaha @Chaz Reid it's that much worse in person.  

While on my way to a listing appointment last week, I rode around the neighborhood trying to kill some time. I noticed a run down house two houses down from the home I would be listing and I was very intrigued. The grass was overgrown and there was a hole in the roof. This was exactly the type of house I was looking for. The home is located in an established neighborhood right in the middle of town on a dead end street.

I immediately pulled up the tax assessor on my phone and located where the taxes are being paid. The next day around lunch time I knocked on the owner's door and asked if she would consider selling the run down home. Her eyes lit up and she said, "Why yes but I just didn't think anyone would ever want it." Cha ching.

I asked her permission to go inside the house and she said that was fine. Come to find out she was a hoarder like you see on TV. It looked like stuff had piled up in there for 30 years. The roof was caving in and the flooring was rotting away.

I went back to her home the next day and made an offer of the assessed value minus the cost to demolish the house and she accepted my first offer of $10,000. I emailed the contract to my attorney and we closed 2 days later.

The really neat thing about this home and lot is it's actually 3 lots. The house sits on a 75x150 lot but the plat shows it as 3 25x150 lots. The city code today wouldn't allow a home to be built on such a small lot but because this neighborhood is so old it's grandfathered in. So my plans are to build a 3/2 1,500sqft shotgun house and move into it myself. Once that's complete I will build 2 more of the exact same type homes and keep them as long term rentals.

I've already had an investor offer me $50,000 for the property but I politely turned it down. I'm expecting to have $120,000 in equity once I'm done with the 3 houses not to mention what I will be receiving from tenants in rent!

I've had to knock on many doors before finally getting a great deal but it was all completely worth it! I'll be sure to post pics as the progress happens!

$400,000 seems extremely high for a rental property. Very risky. 

Best thread of the year!  

seems like you can ask your loan officer friend that question. 

I highly recommend getting your license, if you have any questions please private message me :)

I always prefer sfr in the 1,100-1,400 range compared to 1,600-2,000 range. There is very little difference in rent, I can save approx $20,000 in price for wasted sqft and less maintenance for me. 

I install vinyl plank allure flooring instead of carpet. It looks and holds up great. 

you sound like you have done enough. I'm a buy and hold investor and normally don't do that much. If you are worries then find a local mentor to review the deal.