What do you think? Is it worth using an FHA loan?

@enochchejieh4432

4 жыл бұрын

Hey Chandler If you could invest in real estate in any other country apart from america where would it be and why?

@InvestwithRavi

4 жыл бұрын

@@enochchejieh4432 Where-ever the numbers would work. I think you should look for: Income to grow 30% in past 20 years, Home values to have increased 40% in past 20 years, and population growth of 20% in past 20 years .... with that said then run your Cash on cash, and cap rate and does it meet min 1% rule ... Other than those fundamentals i mentioned - invest any country you can legally invest in and want to live in ;)

@Vid_Master

4 жыл бұрын

One time I farted so loudly that my neighbors called the police

@muntatharalwatan2082

4 жыл бұрын

URGENT PLEASE READ AND COMMENT About the rental cal app I did my own calculation and the app is way off I put 125k for purchase price 25 % down 30 years to pay off 8 % vacancy 8% maintenance 4 % interest rate The out come was not operating income 12,188.16 which is right And cash flow is 6,817 But debt service is 5,370.92 That's where I'm concerned because doesnt that mean my mortgage payment every month 447.50 and not to mention the 8 % vacancy and 8 % maintenance so it leaves less then 447.50 for the mortgage payment which is way off in the real world I used 125k as a purchase price to give my self an example when I realized what I just explained I'm sure because my friend just baught a house for that price and his mortgage is 900 a month So when I do my own calculations if I have 900 mortgage payment on 125k house with 8 % vacancy and 8 % maintenance and 25% down 30 years to pay off 4 % interest rate I would be left of with a negative return on investment If I'm doing something wrong please let me no I would highly appreciate it thank you

@jalabi99

4 жыл бұрын

It's definitely worth using the FHA or the VA loans to buy your first investment property especially if you can get a fourplex. It's what I tell all my friends to look into doing. If you can get first time homebuyers assistance or down payment assistance it's even better.

This is a great way for investors to get started if they live in an area where they can buy a multifamily property using an FHA loan. One thing to note is the FHA loan limits increase as the number of units increases (up to $1,472,550 for 4 units). This allows someone in an expensive market like the Bay Area to buy a fourplex for up to $1,525,958 with only $53,408 down!

@ChandlerDavidSmith

4 жыл бұрын

Great info

@tcs9998

4 жыл бұрын

Do you make any cash flow with a 4 flex in SF area with 53K down? I am curious

@seanlovesrealestate

4 жыл бұрын

@@tcs9998 It depends on where you buy it and how much you can charge for the rent. In San Jose, each unit can rent for $2,500 - $3,500/ month. Your mortgage (without the PMI) is going to be around $7,000/ month, total PITI will be around $8,500/month. Not gonna lie, you're probably NOT going to be a cash flowing king from one fourplex, but this strategy allows you to acquire a property in the Bay Area and potentially live in it for zero to low costs! The whole time, you're getting your mortgage paid down and your property is appreciating. It's a pretty legit strategy for someone who wants to own property in the Bay Area.

@Real.Estate.Report

4 жыл бұрын

Doesn't need to be a multifamily... you can buy a SFR with an FHA loan and rent it out later as well. Or bring in roommates to help offset the mortgage. I know not as ideal as a fourplex, but necessary a approach in some markets.

@seanlovesrealestate

4 жыл бұрын

@@Real.Estate.Report Yes! But there are two advantages to purchasing a fourplex with an FHA loan. The first is that the loan limit increases as the number of units increases. The second is that you can use 75% of the rents to help you qualify for the loan (helping you lower your DTI). It's very unlikely that a lender will consider house hacking rents towards your income when you're purchasing the property.

I bought my first house for $179,000 with an FHA loan, and put about $9,000 down in total, including closing costs. Yes I think it is worth using an FHA loan! I sold that house 5 years later and walked away with over $100,000! No exageration!

@rockyt.7251

4 жыл бұрын

Scott, what was the process like? You contacted FHA? Spoke to someone there? What was your credit score? I’m interested, but don’t know the steps... Thanks for your time!

@roxannescott6956

4 жыл бұрын

👏👏👏👏

@MCrelationz

4 жыл бұрын

Answer Ali back Scott don't just disappear on us

My brother did this to buy his house. He got an FHA loan, and his broker even kicked in part of her intended commission as the down payment. He has a mid 700 credit score and got a good interest rate.

@ChandlerDavidSmith

4 жыл бұрын

Sweet!!

@Real.Estate.Report

4 жыл бұрын

That's awesome!

@muntatharalwatan2082

4 жыл бұрын

URGENT ABOUT THE CAL APP U MADE I did my own calculation and the app is way off I put 125k for purchase price 25 % down 30 years to pay off 8 % vacancy 8% maintenance 4 % interest rate The out come was not operating income 12,188.16 which is right And cash flow is 6,817 But debt service is 5,370.92 That's where I'm concerned because doesnt that mean my mortgage payment every month 447.50 and not to mention the 8 % vacancy and 8 % maintenance so it leaves less then 447.50 for the mortgage payment which is way off in the real world I used 125k as a purchase price to give my self an example when I realized what I just explained I'm sure because my friend just baught a house for that price and his mortgage is 900 a month So when I do my own calculations if I have 900 mortgage payment on 125k house with 8 % vacancy and 8 % maintenance and 25% down 30 years to pay off 4 % interest rate I would be left of with a negative return on investment If I'm doing something wrong please let me no I would highly appreciate it thank you

@greaterishe7197

2 жыл бұрын

Good news!

Please do a video on how to deal with tenants who think they call the shots and are difficult. I saw your eviction video which was helpful, but not exactly my situation. Just tenants who complain and argue over things which don't need to be argued about. I am a 21 year old landlord and they seem to think they can take advantage of me, due to my young age. I am doing my responsibilities and due diligence as the landlord and nothing seems to be good enough for them. They have gotten all reasonable requests sufficed, I answer in a timely response, etc. I hear from these tenants every week about some kind of petty complaint for a freshly remodeled and nice home. I guess the one thing I can take from this is people can look great on paper with amazing background checks and credit scores but you never know who you are dealing with.

@SydneyScream

3 жыл бұрын

Get a management company hun

@jeremyconrad9183

3 жыл бұрын

his video would be 30 seconds long 25 of it being his intro and outro and 5 other seconds that say "get a management company"

@eloycubero5961

2 жыл бұрын

Gotta grow some balls and put yo foot down

House hacking is how I got started a couple years ago. It's incredible for reducing your net housing costs. Now I'm preparing to close on my first stand alone rental property with the cash I've been able to save!

@TheLynLyn57

3 жыл бұрын

Thank you for the motivation!

@JackDuffley

3 жыл бұрын

@@TheLynLyn57 right on! Aiming for rental number 2 by the end of the summer :D

@offlong

3 жыл бұрын

@@JackDuffley did u bought under ur name or llc?

@JackDuffley

3 жыл бұрын

@@offlong my house-hack is in my name (since you get the best financing terms as an owner-occupant), and my rental was bought directly under an LLC.

@offlong

3 жыл бұрын

@@JackDuffley ok thx

No lie, this is the only channel I have ever turned on notifications for. This channel is incredible!

I used to think real estate investing was very scary but I am slowly figuring it out. Thanks for the info.

Hey Chandler. In at least one of your previous videos, you mentioned that even if someone plans on using an FHA loan to get started, he/she should still make sure that there is at least a 15% cash on cash return rate as if 25% was put down. You didn't talk about this in this video, but is that still necessary (even with this property), and if so, why?

Great vlog 👍🏼👏🙌🏼🔥thanks Chandler!! This is a proven low overhead tactic into becoming a first time investor/landlord👍🏼This is exactly how I started, and I have no regrets at doing it exactly as you modeled for your viewers ❤️👏💵outstanding presentation and thank you so much for your CDS calculator 💣it’s the bomb !!

Thank you Chandler, you are a great teacher.

Holy. Your channel is growing. Congrats

I’m about halfway through chandler’s course and it is pure gold. Everyone who follows him on KZread should consider it.

What are your thoughts on renting out a co-op assuming the co-op board allows it?

This is my favorite video yet from you!

THANK YOU FOR THE VIDEO!!!

Thanks for the video Chandler! I will be looking to purchase my first property in the next 6 months using an FHA loan. Also a great way to get my feet wet with investment properties.

Are you suggesting having the six months reserve money before even starting this? That would require more than the $5,000. Or are you saying to accumulate and save that up after you've acquired the home?

I follow your brother for his Webflow tutorials, and now that I'm looking for help with investment properties I'm glad I found your channel! Excited to get started.

Even when people say is an FHA, PMI etc... you can do a refi to conventional loan after a year if you want to rid of that fha deal. Excellent info brother I aprecciate your value time to share us all your knowledge. 👍

Sweet! I just downloaded the app. I live in California, everything is do expensive here do I’m going to test this here!

This is great inform! Thanks Chandler!

@ChandlerDavidSmith

4 жыл бұрын

Thank you for watching!

One of your best videos! 🎉🙏🤙

Man this is such a great information for someone who wants ti get in real estate but doesn't know much about it, I gotta search more about the FHA in the area of San Diego, but really great man, thanks, keep it up👌👌👌

@Real.Estate.Report

4 жыл бұрын

I agree! If you have no experience, this is a great place to start. I bought my first home with an FHA loan 9 years ago and I've been in and out of over a dozen since then.

@ChandlerDavidSmith

4 жыл бұрын

Thanks so much!

What are respectable numbers for a single family home? Duplexes in my area are hard to come by.

Don't they require you to open escrow and put 3-6 months of reserves in it if you do FHA? So your real upfront costs are: down payment(3.5%) + Upfront PMI(1.75%) + Escrow 3-6 months(Home insurance, PMI, taxes). Even without closing costs, this would run you way more than 5K upfront, no?

Hello Chandler, I really enjoy your videos and the advices you give your subscribers. However, I hope you make a video about DTI and how no matter how much you have saved up, it will ultimately be up to your DTI that will determine how much or if you will even get a mortgage. Please make a video on this explaining not only DTI but how to lower it so someone can get a loan. Thanks

@pyrochickhop8339

Жыл бұрын

remember that another option is called owner-financing or lease option. Some owners paid off their house long ago and would be willing to carry the mortgage. The interest rate will usually be higher, but sometimes they will negotiate a low down payment or be flexible in other ways. STILL, if you don't have control over your finances, your spending will always be on stuff that loses value instead of building wealth.

Great App. Just ran the numbers on my first investment, a 4k sq ft duplex. (Closed 2 weeks ago). Cash on Cash of %110 and 157% return.

Chandler. I live in California. How does it work for a property in california? And is the risk worth it to purchase out of state?

How much do you pay a management company for your portfolio or do you manage it yourself?

I went FHA on my last 4 plex, so worth it, making over 50% return on $15,000 invested.

Thank you for this valuable information. I’m still not understanding where the $2608 cash on cash came from after the rents you have to pay..

Can a Canadian citizen with a us llc get a five percent down with fha loan? Also loans with fennie or freddie as well?

My area (Phoenix) doesnt really have Duplexs. Thoughts on doing this same thing with a 2 bedroom apartment near University and renting out the other room then moving out and renting out both?

@jalabi99

4 жыл бұрын

That would work.

Can u use my retirement money as down payment for an FHA loan

Hi if I’m looking to purchase a property is this going to have to be my primary home ? Can I get an investment property with 5 % down ?

@Real.Estate.Report

4 жыл бұрын

No you can't with a conventional or FHA loan. Maybe with a hard money loan or a private equity loan.

What is the process of getting tenants into a property. What paperwork will I need in order for the tenant to agree on terms? What sorts of paperwork will I need if I want to manage it myself for the first year?

Hi Chandler. I currently own my house, which I got from my mother. Can I still get a FHA loan on another ouse? Which is the better deal owner occupied or FHA? I prefer to rent out my current home. How does one REALLY cut a deal with zero closing costs? Thanks!

@zeusgod2k148

2 жыл бұрын

Yes you can get an FHA loan but can only have one at a time unless you pay it off afterwards you can get another but your not consider a first time buyer so do your research before getting another loan

“If it’s a month or two, you totally suck” lol I agree, two months is unacceptable.

@ChandlerDavidSmith

4 жыл бұрын

Hahaha yeah...

@michaels9612

4 жыл бұрын

I’ve always worried about vacancies and I’ve only speculated home purchasing as of right now...

@moonbentley7412

2 жыл бұрын

@@michaels9612 have u bought a home yet?

@michaels9612

2 жыл бұрын

@@moonbentley7412 October 2020 yeah

When you say clash return you are talking about the total cash you get returned in 30 yeara after the loan ends right?

Chandler if it's a duplex why is there a "cheaper" unit? I thought you could double the rents?

Hey dude, could you make a video specifically talking about the VA loan ?

@armyfazer1410

3 жыл бұрын

It's the same principles but with zero down and no PMI!

Hey Chandler! been watching a few of your videos the last few days and i definitely want to invest in real estate in any way i can. right now i am renting and need to buy my first home to live in. I would like to start out with a duplex and live in one side. that being said, most of the videos i been seeing there properties are like 150k or around that. i live in south florida where realestate is waaaay more even in the ghetto. i am a full time single dad with low income and cannot get approved for anything higher than 150k. is there any pointers you can give me about being approved for the highest mortgage possible on a low income (about 35k/y)

Please explain more about how you use LLCs.

should you do a 30 yr FHA or 15 FHA???

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.

Thanks Chandler, You are the king!!! Since I got to know about Rogan Colbert from your channel I have been earning huge wow!!

@leduong5459

3 жыл бұрын

I rather invest money and make profit within a period of time than just save money in the bank

@derekrodney2932

3 жыл бұрын

Men like Mr rogan colbert are rare. I pray God Blesses him for his good works in helping people earn from the foreign exchange market

@laurenmoore8718

3 жыл бұрын

Expert guidance is very important and highly recommended while trading forex, you need someone to guide your steps so you don't make newbie mistakes

@marielalunny9773

3 жыл бұрын

How can I reach out to Mr Rogan Colbert I'm really interested and I want to earn huge too

@nirankovit3608

3 жыл бұрын

@@marielalunny9773 Roganfelixcolbert @ g m a i l . c o m

I already own a personal residence I have equity in my home. What's the best way for someone like me to get started in Real Estate? Can I use a FHA loan ?

Are apartment building prices going down as homes are around most of the country ?

When I run my numbers, I don’t even break even unless I put 30% down, would an interest only loan be the best way to go?

sooo we gotta move near Chandler because in Wilmington, NC i cant even buy a 2/2 house less then 170k... unless its ghetto area wheres shooting all over

Bought a property for $180K and spent $150K on renovations on a two family house with a property tax of $6K annually. House is paid off and renting out 2nd floor for $1500/month and parents living downstairs for free but expect to rent downstairs also for $1500 in about 5 to 7 years. If i can sell the house for $475K, would it be better to sell or keep as a rental? Also should I buy rental properties as a LLC, Sole, or Corp?

do you have to live in your fha loan house ?!

Hey can you make a video on strategies for advertising your rental property

Can the FHA loan be applied if I'm buying an apartment?

Chandler, what do you think of the USDA loan?

@ChandlerDavidSmith

4 жыл бұрын

I think any loan can be good if it works with your numbers but I think that one will be tough to make the numbers work

You're a god bro, Thank you for the information

I live in LA everything is sky high here surrounded by vultures . Any advice ?

Chandler, what are your thoughts on investing in an area like the Bay Area or Los Angeles?

@seanlovesrealestate

4 жыл бұрын

There's a very active community of investors here in the Bay Area and in Los Angeles. Most SFRs here can't be financed with an FHA loan due to the high purchase prices, but people can still buy condos or townhomes and use the house hacking strategy to drastically reduce their cost of living.

@ChandlerDavidSmith

4 жыл бұрын

As long as the numbers makes sense, invest wherever you can! I lived in LA for a little while and love the Bay Area...I’m biased to both because they’re sick places 👍

@JayWuOfficial

4 жыл бұрын

@@davidboeger6766 You're absolutely right, David. The non-financial encumbrance of having a roommate can be bearing lol. Personally I've been looking into condos since they are "slightly" more affordable. The 2bd/2ba ones can be enticing especially if the both of you are working professionals.

@seanlovesrealestate

4 жыл бұрын

@@davidboeger6766 Hey, it's nice to meet with another investor based in the Bay Area! Feel free to connect if you want to chat more about real estate! There are many options for first-time homebuyers now. At the end of the day, you need to look at what you're comfortable with. I house hacked my first purchase and rented out all of the rooms to my friends. There are also some people who prefer to rent where they live and only purchase properties as investments to rent out. It all depends on what you're interested in :)

Where did you buy that property I mean in which state ?

Lots of great information in this video, what are options for people that already have an existing home they don’t plan to move out of for an fha loan?

@lagarv261

2 жыл бұрын

Use a home equity line of credit to finance your second property

I'm 20 years old , I started trading stocks when I was 16 and thought if I had more assets o could set a better source of income the. Working , I'm trying to get into real estate but their a number of logistics that your video has hep with . In short ty for giving me a good financial education 👏👏

Just realized ins and tax expenses are annual. Rip running numbers. Might be helpful to include that in the app. Thought everything was monthly figures.

Is the cash flow yearly?

How about service charges to get a fha loan?

Thank youuuuuu

@ChandlerDavidSmith

4 жыл бұрын

👍👍

Is this assuming the property is turn key? The ROI will be much smaller once you account for rehab costs.

@jalabi99

4 жыл бұрын

@Scott Vaeth then you get an FHA 203K loan which includes funds for the rehab.

So where is does the mortgage payment go?

This guy is GOOD

@ChandlerDavidSmith

4 жыл бұрын

Thank you!! 😉

How you get that factor.? I mean the 1.0175

Depends on the market. If it is a hot market, sellers won’t even consider FHA loan. With 140k purchase price, commission is 4k tops, not enough for agents to help you with the closing coast.

GOOD VIDEO

@ChandlerDavidSmith

4 жыл бұрын

Thank you!

there's no way u can get a suppler like this in California unless it needs rehab or thoughts?

@Fearless533

4 жыл бұрын

Or New york lol we screwed.

Do I have to wait and get my credit score up I barely got a credit card 3 months ago ?

@rockyt.7251

4 жыл бұрын

John, if your credit score is not 700 or above, I think you’ll pay too much in interest rates on this stuff...

@johncolorado1061

4 жыл бұрын

@@rockyt.7251 good point but would someone else be able to take out the mortgage for me and then transfer it to me.

what if you want to flip with an fha loan?

What about if you are in California and houses are 700k.

This probably sounds stupid but I was wondering if I made enough money could I buy a rental house when I am under 18. It does sound dumb but it is posable to make that money under 18.

The current FHA upfront premium is 1.75 percent of the loan amount

i have 21 with 10k saved and no credit, can i do this?

Hello Chandler, have you invested in Puerto Rico? I know to buy a vacation home or airbnb type home is a bit different than main land. I am looking to investing in the island and any expertise you may have would be greatly appreciated.

So it's really that you need $5,000 plus six months of reserves plus inspection for this plan to work?

@ChandlerDavidSmith

4 жыл бұрын

At the end of the day, getting an inspection and having those six months of reserves is what makes me feel the most comfortable with investing. Not everyone does those things and they’re fine, but when problems arise, they’ll be in more trouble than I would be

Is the CDs calculator on Galaxy store

I wish the taxes in my state were that low! LOL!

Man now I feel like I should prepare to sale my house I bought last year

It’s hard here in Los Angeles :/

BOUGHT MY 4 plex at age 21 with FHA loan! Been making videos about it! Thanks Chandler your the man!

@moonbentley7412

2 жыл бұрын

Subbed

$312 for insurance on a $140k rental property!? Who’s your provider?

Didn't realize I would have to live in the property for at least one year to qualify for the loan. Better to go with a FSBO then.

140K USD what state are you in? Only thing you can buy at that price in southern California is a stationed mobile home at a trailer park.

Love your laugh! 😝

I am so confused, you are saying where to plug in the numbers

U lost me at extra expenses, what exactly did u multiply by .85?

@anon12three4

3 жыл бұрын

He means .0085 ....

Would be interesting to see a video on why making your own duplex from a single family may/may not be a good idea.

Just did this with a 150000 duplex only issue if trying to figure the rent

@deadcell1

2 жыл бұрын

If all I had was $5,000 I wouldn't be trying to buy a rental property. There are a lot of things that can go wrong and if you don't have the capital to cover you are screwed.

Wow only 5,000 for a down payment. That’s awesome, gotta get that credit score up

@Fighter4TheWeak

4 жыл бұрын

620

Why is there no mortgage?

This is impossible to find in massachusetts bro, the cheapest house around is like 280k

@elisscaliving5864

4 жыл бұрын

Invest in the hood

If you used a FHA on this property less than 6 months ago. why are you not living there?

@ChandlerDavidSmith

4 жыл бұрын

I didn’t, I bought this property with 25% down. In the video I was just saying that I bought it in the last six months at the deal that I bought it at. Not with the loan I was referring to

Man, 140k for a duplex, wish that was the case now haha

@Jigga57

2 жыл бұрын

It was never the case where I live at lol even for single family

What is the risk??? I'm sold