All Forum Posts by: Timothy Lewis

@Marco Morkous this is a great idea as Russell and Gavin propose (having agents in different markets). The only item that hasn't come up on the legality question (I am not a lawyer) as posed by your post is the agency agreements you enter into with the agent. I would read them carefully regarding exclusivity and be sure you specify the areas you'll work with each agent. Of course, if you find some aren't working for you, you can cancel the agreement and enter into a contract with a new one.  

So 203K is the FHA product. During my search, I recall seeing options to do 3% down conventional loan, but the product may be on the backburner now. I want to say this was the likes of BOA in my area, but it may have been a mortgage broker. Also, that may not apply to rehab. I'd call a few local lenders and find out whether they have conventional rehab loans and how they compare to a 203k.

@Yazan Dabbagh Seems like you're checking all the boxes on what is permitted. Go for it! Also note, there are other acquisition + rehab products out there, some conventional. I used one on my primary residence and think you should explore those options in addition to 203K.

The only thing that comes to mind is that each of the homes may have different special assessments applied to it. Like @Matt Devincenzo suggested, a public utility project that only benefits a few homes could be assessed to the beneficiaries.

I appreciate the feedback. Thanks, @Raju V.

Hi @Raju V., do you actively participate in any local meetups? I attended a great one hosted by @Russell Brazil at the beginning of the month and plan for that to be a regular one for me. I live in Bowie and am curious if there is anything in our neck of the woods you'd recommend.

@Zayda Arzen I'm interested in what the more experienced investors would say, but I think it depends on whether all the tenants are on one lease or if each tenant has their own lease. In the latter scenario, I would imagine you would be able to run all you typical screening due diligence including the income/rent ratio.

I think in any scenario you would want to communicate criteria for to the new tenant. It would make sense to me that this individual would also need to fill out your rental application.

Just of a few thoughts. Excited to hear how this goes.

Good luck!

@Quentin Mitchell I would also add consistent. I believe successful investors practice their craft regularly allowing them to gain more experience, confidence, and opportunities as a result.

@Koo Sharifi, I'm sure that's a very popular strategy here. Look up the BRRRR method---buy, rehab, rent, refinance, repeat. The rehab and refinance parts suggest the property needs work, which may not be your strategy. The biggest downside is that your return on investment will be lower due to the lack of leverage. A big plus with your approach is you lower your risk of losing the property. I would caution that you should be sure to have reserves in either scenario.

@Cherie Durand, absolutely look at other homes to compare the listed price. Generally, look at sales within the last 3 months. You typically want to find properties that are similar enough. Try to keep your list of comparables to a small radius depending on the area your evaluating (the more dense, the smaller the area).