The FHA Loan + House Hack Investment Property | Best Deal Ever Show | Ep. 6
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- Опубліковано 11 жов 2024
- New real estate investors, listen up and listen good! If you're looking to start investing in real estate, then you need to know about house hacking.
In today's episode, Ken Corsini interviews real estate investor Ola Dantis, to hear about his best deal ever. This deal is amazing because of how simple and repeatable it is for any real estate investor.
Ola purchased a duplex in Baltimore with his wife and using the powerful FHA Loan for a low down payment, fixed up the property while house hacking and in 18 months amassed $80k in equity while generating nearly $2600 in passive income!
This is a strategy for all real estate investors to consider!
This is the Best Deal Ever Show.
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Jump to 6:29 to hear the deal.
I'm so glad you shared his story! My fiance and I are currently in the middle of renovating our first investment property, which is a house hack with almost the exact same numbers as his best deal ever. We bought it with 3% down, locking in a 3.5% interest rate & its basically a lipstick reno... only needing paint and flooring essentially. We are currently living in the top and about to put a renter in the bottom. When we eventually move out, we will be able to get about $1500 for the top and $1100 for the bottom/ month. Renovating a property while working full time jobs can be stressful and we've been kinda down about it lately because we just keep running into problem after problem. Hearing this very experienced RE investor talk about his best deal ever, which is very similar to ours brought my mood and motivation back up! Thanks for sharing!
Good on you glad Jasmin!
Has it been successful?
@@mikesmith7579 yes! We have an awesome renter in the basement and slowlyyyy working on renovating the top while living in it. My fiancé is very handy and I come up with the design ideas/ decorating. We really enjoy it!
@@jasminthorpe6448 how do you handle the utilitys?
When he said interest rates are at an all time low…I had to look at the posting date. 😂
I’m house hacking in Brooklyn! This is my first property but looking to move in full force next year.
Good luck Regina. I'm sure you will do great!
i’m in brooklyn looking to do the same thing
Regina Clarke I’m in Queens. Want to house hack also. Where in Brooklyn is your property and how much was the purchase price?
What were all the costs u paid at closing?
Sorry for the delay. Closing costs for me would be significantly different because I originally purchased the property in 2014. My house has significantly Increased in value as well as all of Brooklyn. Veterans can also roll in closing cost into their loans.
Consider looking into first time buyer programs if you aren’t a veteran. There are a ton. Look for a deal or fixer upper maybe (for the right price). I feel like prices moved way faster than development and some neighborhoods were forced up by agents. Do very, very serious research on the neighborhood. I looked for years before I had the income. Once I was ready, I knew what was a deal and what wasn’t.
This is awesome! I hope to use 203k to house hack in Baltimore very soon. Great product
Do it Chinnonso! Good luck... Let me know if you need any help or advice
@@oladantis Thank you Ola! I''ll be sure to reach out to sure. If you don't know what is your best contact information?
@@IgboChinn Instagram my name and you can reach via there.
In a few years I'm going to buy my first property here in Helsinki, from there I will house hack and one day, let me tell you, I'm going to be a fucking millionaire. I'm going to make it and put in the work so I one day will become the successful businessman I have decided to be! Love pb and keep up the good work!!
Have you bought a house yet?
Why doesn’t everyone do this or think this way? Honest question
because it's work! it ain't easy. it requires $$$ + energy.
That is definitely an interesting question. In life, you don't know what you don't know!
Not everyone wants to deal with tenants, some people want to own a house so they don’t have to share a building with people they don’t know.
Many reasons. They may not know about it, or they don't know to how much of an extent you can pull it off to (like instead of renting out a small bedroom you pull the reverse where you yourself move into the small bedroom and rent out the rest of the house), or they are not willing to be uncomfortable for a few years, or they don't know how tax deductions for real estate work, or they are misinformed by their friends and family, or they don't have the money to invest, etc etc etc. Many reasons man.
Edit: Also REHAB. People don't know how to estimate rehab costs, or they don't know how to fix things themselves, or they overspend on top quality stuff, etc.
Because majority of people have a poverty mindset
This was a great and simple interview. I’m in the process of doing a VA IRRRL to reduce my interest rate and then I’ll rent it out once my new home is built. I plan to do this with my second home in the next four years or so.
"someone is paying us to live here," great way of putting, many people don't have their landlord on site.
It sucks because the only multi family houses that are available in my region are in the hood and I dont want to live in the hood I have a family
Brilliant! Thank you so much for sharing.
wow so happy to hear this i live in baltimore and im planning on doing this
What if someone doesn’t have $40-$50K for a rehab, but just $30K in cash to work with to try and accomplish the same Duplex house hack?
You can do it! I only had about $15,000 when I jumped in. It's all about finding the right deal & possibly partnership!
You take a loan for 100k buy a house for 70k use the remainder of the loan for rehab
Utilize the 203k loan mortgage. 3.5% down and reno cost is wrapped into mortgage. 30K is more than enough. Best of luck
Jasmin Boone How did you do it? Was it a duplex house hack? $15,000 isn’t much if you have to rehab 2 units. Plus a downpayment and potential closing costs.
I THINK you missed something big here. If you’ve lived in the property for at least 2 years you can sell and NOT pay capital gains tax. So when you said he should refi and 1031, I believe he doesn’t have to worry about taxes. Someone correct me if I’m wrong
Alberto Acevedo been five months since you asked and no one answered. you are correct. it’s 2 out 5 years rule which means you must live there 2 of 5 years and doesn’t have to be consecutive years. although no tax he may end up making more holding in the long run?
so each app I've tried doesn't look good after I remove one half of rental income due to me wanting to live on one side of a duplex. How do I account for that? Or will a lender take that into consideration? I wouldn't plan on living there forever so eventually monthly income would increase.
I'm doing it in Ohio!! BP has been a great resource👍
Such a good story - thanks for sharing!
Can you do a cash out refi on a 203k loan or if you did an fha and separate bank loan for the rehab? Someone please answer!!
Great Interview Ola. Keep Winning Man
Great info, thanks so much for sharing. Question, would u recommend purchasing a property w fha loan if it cash flows negatively the first year (since you’re living in it) but then cash flows positively once you move out and fully rent it? Deal I’m analyzing would be 42% ROI once fully rented. Advice is appreciated!
Hey I know this old but I think the dude in the interview did that. I think he said “the rent paid for MOST of the rent”.
Thank you!!
💪Crushing it !
Hey what an amazing deal! I’m on my way to perform a similar deal but i wonder why you do not call this a BRRRR-house hack- deal? Is it because it’s the same bank that refinance the property?
I guess it's because he haven't refinanced it and repeated the process. But he COULD, and he SHOULD with this all time low interest rates!
WOW !!!
Curious what happens to the loan once he moved out. Is the loan still in his personal name? How does that work if not living there anymore?
It's still getting paid , what exactly do you mean? FHA requires the borrower to live there for one year thats all
@@user27278 hey so are there two ways to get to the 3.5% DP? 1. Credit score above 580-620 or 2. Living in it a year? Thanks
@@IndieBassJA26 both
Vote Trump. Rent Control will hurt the people.
I think there are bigger problems in the world
great stuff but terrible video