All Forum Posts by: Andrew Katz

I have done 2 house hacks. They have decent cash flow, but cash flow isn't super important important to me in my investing journey right now. I'd like to build up some equity, but I'm struggling to find value-add properties (and get offers accepted). I don't have enough money to buy all cash, and I don't have enough experience to partner with someone. What should my next steps be? Here are the options I thought up:

Option 1: Save up money for a few more years until I have enough to buy a place all cash from a wholesaler

Option 2: Aggressively pay down one of my mortgages (~$440k left at 6%) and cash out refinance in a few years to buy a place all cash
from a wholesaler

Option 3: Buy another house hack

All 3 of these will require me to put my value-all dreams on hold for a few years. Does anyone else have suggestions of other options I could pursue? I'd prefer to keep my investing local to Chicago right now.

@Kerli Casanova - House hacking is great!

Why didn't the deal go through? Was it on your side or was it on the seller's side?

I think it is easier to find a deal if you are house hacking since your deal doesn't need to be a home run; it just needs to be better then the alternative (paying rent).

The stipulation with conventional and FHA loans say you intend to occupy the the house for at least a year. Whether you occupy it or not, you won't be able to qualify for another loan for another year.

You might not end up living there for an entire year because if you move in and you don't like the house, you don't like the neighborhood, or you need to relocate for a job.

If you get the loan and never intended to live there for an entire year, then you are committing mortgage fraud. 

Thanks @Leslie Bole and @Chase Olson. I actually went to a REI meetup yesterday, and I was able to find a lender to help me out.

I'm looking to do a third house hack/BRRRR in the next 2 years. I plan to utilize some cash, margin loan, 401k loan, and a HELOC as a down payment.

My first house hack (now an out of state investment) has a Zestimate of $530K, and I have $266K left on the loan. Assuming I get an appraisal of $500K, I have ~$110k (75% of appraised value minus the loan) I could tap into for equity for a HELOC.

Question: What is the process for getting a HELOC?
Folks say use a local lender. Is that local to me? Or local to the property?
Do I get the appraisal? Or will the lender do that?

Hi Miles - it looks like you are looking for a local credit union or bank. Could you provide your city and state?

The current place you're renting is 40% below market, but will that be the case for the next 32 months? Your landlord could increase your rate at the next renewal, or your landlord could sell and the new landlord could renew at the market rate.

The sooner you begin house hacking the sooner you'll find out if real estate is the path for you. In addition, you'll have 16 months of land-lording experience as opposed to none if you wait 32 months.

How many doors do you have currently?

If you're at 0 doors, the money could be better spent on your first property. You can read all the book and receive all the mentorship, but nothing beats real experience.

@Tanner Sherman that’s good feedback. I have some rapport as I’ve talked with her in the past and she seems mostly motivated by money. I figured the value proposition here would be to buy the property without a realtor saving her commission.

~1 year ago, I bought my first property, an owner-occupied duplex through a conventional loan.

I share a driveway with the 4-plex next door, and I'd like to buy it [off market] through an owner-occupied FHA loan (i checked with a lender and this is possible).

I have the owner's email and phone number, and I've spoken to her in the past. How do I approach this? Do I just send an email that says:
Would you be interested in selling XZY property?

Since I'd be buying this property off-market without a realtor, I assume I'll need a lawyer. What types of lawyers handle these transactions?

What else should I look into?