All Forum Posts by: Tim Puffer

@Walter Key@Patrick Liska

@Christopher Brainard

Tenants pay all utilities. It is all separately metered.

I only factored in 5% for property management as I wanted to at least have some accounted for. I plan to manage this myself. 

I plan to offer lower to account for repairs - new flooring, paint, and appliances in both units. 

Has anyone had any experience in dealing with Fannie Mae in offering on a property?

Ok guys. I'm looking at this duplex that is a homepath property to owner occupy for the first year. Each unit is a 2/1, approx. 1,000 sq ft, has separate full basements and 1 car garage, built in 1976. Each unit needs new paint, flooring, kitchen hardware, appliances. Furnaces are a bit older. Roof is in good shape. Some windows are older, but serviceable at the moment.

Loan would be 5% down at 5% interest rate(won't be that high, but using to be safe)

This is all calculated for when it is fully tenant occupied - 

List price $112,000

Monthly rent - $1,600 (can probably get more, but want to be somewhat conservative)

Cashflow would be right around $200 per month.

What do you guys think?!

@Daria B. If your agent is quoting the quad the same as an SFR they are doing it wrong. They are different exposures and will likely get caught in underwriting when you have an inspection by the insurance company.

Absolutely make sure you are properly protected! Don't try to save a few hundred per year and in turn take away better coverage. Additionally, you should have an umbrella whether or not you own 1 or 50 properties. They are dirt cheap, as low as $200 PER YEAR! 

I could go into more detail guys, just let me know.

(by the way - I have 5 years in the insurance industry as an agent and underwriter for homes, umbrellas, and currently apartment buildings - So please ask away with questions!)

Up to 4 units is considered for personal loans - 5 or more units has to go commercial. You can use up 75% of the rent income of the units you are not occupying as "your" income in consideration of the loan amount you are approved for.

Read this blog by @Brandon Turner - 

https://www.biggerpockets.com/renewsblog/2013/11/02/hack-housing-get-paid-live-free/

@Andre Cano

What type of loan are you in the middle of getting approved for?

With FHA you can use up to 75% of the income of the other units toward your income. This will increase the amount you will get approved for. You can go up to a 4 unit. I'm in the middle of this route right now. I would shoot for the max and go with a 4 unit - yes you will have PMI, but you will be getting a very low interest loan - assuming your credit is decent.

@Michael Shires

If you want to quit your job in 6 years you will want passive income coming in. So buy and hold would be the best option. With getting loaned money from a private investor they are not going to want to wait too long to get their return back. If you buy a small apartment building you would want to look for something that has some expandability going into the deal i.e. Has room for you to increase rents to market, or forced appreciation via upgrading the building in some way. This way you can look to re-finance the building and pay your investor back and the cost for upgrading the building.

@Account Closed

Are you doing a flip on the home or will it be sitting vacant for a while?

@Ed Upton

Post questions in the forums - you will get a ton of answers, and maybe a good laugh.

Listen to the podcasts  - They have killer content in them! 

I think from doing those things you can get a feel for everything and it may even help you decide what type of investing you want to do.

Oh boy... Let's give everyone an opportunity to throw their money at something they don't understand... I see a bunch of phony crowdfunding platforms popping up and taking a lot of money and never actually delivering on what is promised. Wait! We already have that with the gurus!