All Forum Posts by: Sofia Komrskova

Sounds like a great idea. Start with the 3.5% FHA and then do the 5% conventional every year afterwards. When applying for loans, do not list your wife as the co borrower and vice versa. This will negatively affect both your DTIs and stack your conventional loan limit(10 per person). Only other advice I have is to try to find a quad, not a duplex, in the nicest neighborhoods you can afford. A quad will cash flow much better than a duplex and that makes it less risky in my opinion. To further improve cash flow, look into doing MTR(travel nursing) or if possible STR(more risky). I would personally put as little down as possible, but if you make a substantial income and your goal is to start paying them off after a decade you can put down more.

I agree with the others. That is a very fair price from your contractor for all that work, and you are well within your right to deduct from the security deposit. Just document the current condition before the cleanup process and follow any other local law or procedure that is in your municipality. 

I would not hire a property manager. Get a leasing agent for placing tenants and a good handyman for repair requests. Then just handle it yourself with some basic software(Stessa, e.g). Also North Providence is a great area, so you should have no problem finding quality tenants. You should not get a PM until you have scaled to a level that requires it. If you go too soon you'll never learn how to manage your own property. Good luck. 

 Sure Zach!

Do not buy a single family house with FHA. Buy a multi and use the rent to subsidize your housing payment. If you buy the single now your DTI will be negatively affected for future properties. You are handicapping yourself by doing the single family first.

Do you absolutely have to live in New York? If you are serious about scaling up a cash flowing portfolio you honestly need to move to a state that has that kind of inventory. Think somewhere in the Midwest or certain markets in the south. If you can't leave NY, I really wouldn't try to do a BRRR from that far away unless you have someone you trust who is local. Look into Connecticut, Rhode Island or smaller markets upstate.

Need more details. How is the condition of the roof, mechanicals, walls, foundation and exterior? Is it just an interior rehab? 

 Gotcha. Yeah stick with insurance then lol. Maybe you should liquidate a portion of your portfolio just in case. I'm not sure by how much your rates are increasing but I have friends in NOLA who have seen a 2x increase per year. It's getting insane down in that part of the country. 

Understood. Just a heads up LTR folks are pretty brutal on furniture. In my experience it won't be looking too pretty after a year. I do mid term rentals during my STR dead season(3 month period) and the furniture gets beat up. Maybe you could just throw it in a garage or storage area. Not sure if that is physically or financially feasible to you. Either way, I feel like with furnished spaces STR or MTR is the way to go. Totally understandable that you may have time to commit to it, as it is extremely hands own. Good luck either way!

If they don't meet your standards don't rent to them. All it takes is one non-payment or messy eviction to set you back months and even years in cash flow. It's better to wait for the right candidate. If you still feel like you want to do it at least go visit their current rental to see what it looks like.