Hey man, if you could do a video about the different advantages and disadvantages of buying different property type. Example Single family homes, Duplexes and Apartments
I would like to know more about Creative Financing. I did get your course. I decided to pass on that Triplex. It was to much work to do for my first investment property.
Hey Chandler! I love your CDS calculator. I just ran numbers for my first property and it works amazing❤️. If you can, could you please make a video on how you bought 99 properties in just 7+ years? Really appreciate it. Keep posting such good content.💪👍🏻
Just throwing this out there but for the Cash on Cash Return area on your app. It would be cool if it could be Green when it’s in a good “range” and Red when it’s in a bad range. That way we can quickly know what is a good deal and not. I know it ranges by area and such but still maybe good to have that range
Found your channel when I sold someone pest control, knocking on the doors, and told them I want to buy my first rental property. They're like,"You gotta watch this guy cause he did the same thing". These videos are perfect!
I think I’m 15 videos in at this point. I will say, the information is amazingly detailed and the app idea is the first I’ve seen and is different! Keep up the great work!
I wish we could get down payments that low in Canada, lowest I could find was 10% down, which still wasn't to bad. Closing on my first property in two weeks at 20 years old. I managed to find a fourplex for a really good deal! Very excited to finally get started after researching for the past few years
love your content. I've been investing in real estate since 2013 in a college town. I had no mentors, and made a ton of mistakes along the way; that being said I was successful on my own. Your content has enriched my confidence and knowledge to capitalize on my successes.My early success wasn't with ought its hardships. I currently own 10 doors, income is 7926- cash flow is 3,215. I have too many "project properties" that don't produce anything, and wont with ought a cost prohibitive amount of funds. I paid cash for 6 properties over the years, 3 of which produce income (soon to be 4, another story for another time) and 1 that is mortgaged. I am sitting on roughly 475,000 in equity that I could pull down. In recent, I an hopeful for a 19 unit complex. wish me luck!
I’ve learned to finish a property Reno and have it rent ready within 4-6 months of purchase. Don’t let something sit. It drains cash flow and sits and weathers faster than if someone was living there. If you own 3 properties that cash flow go to the bank and get a loan. They will give 75% of appraised value. Then take that money and renovate what you have left. If you own some that are cost prohibitive to repair they were bad purchases and you should sell them, or find someone who will rent and do the Reno work themselves. Give them a break on rent and they will increase the value of your property. But if you have 10 doors and only 3 are producing rent I’d step back and reevaluate what I’m purchasing and why, and sell them or figure out a way to get them producing income.
How long do you recommend the time period to pay off our mortgage , 30 years ? Is it too long , what if we try to pay off mortgage of our first rental property within 5 years ? Then within that time the property will be ours right ? Or I’m I wrong ? Will it kill my cash flow over the years ?
This video was when the rate was historically low. My question is that is it a good idea to buy a single home or condo rental property putting 20% down?
Great vid. I'm a little late, lol. Just purchased a live-in/buy& hold SF, using no money down VA, and all closing costs covered. I'm sitting at 2.75% and $500 under my anticipated monthly budget. Next is to figure out how to get my next one, after putting tenants in there in 12 mos.
@@douglascarpenter5433 sorry for the late response. Yes, you agree to live in, but there is no specified time. however, it is shunned upon by veterans to use the va for investment purposes. therefore, in order to preserve the integrity of the benefit, it's recommended to stay in at least 1 year (unwritten recommendation)
@@douglascarpenter5433 as for reuse, as long as you have enough benefits from the previous purchase, you can have several homes. if it's capped at 36k for guaranteed entitlement, then as long as you don't go over that, you are good. that, or you will have to use out of pocket funding.
Thank you for the amazing content! 1) what strategy do you primarily use to find deals? Or do you just lowball a bunch of MLS properites? 2) did you ever BRRRR any of your 99 units? Or did you stick with the exact same strategy for all 99 units (20-25% down, conventional loan, save up, repeat)?
Hey I’m 22 I’m looking to invest in Real estate but stuck between taken a home loan out for my first house and later take a equity loan on it or should I take a personal loan out and buy two or three cheaper smaller homes first ! Which one should I do ?
If you’re waiting on an equity loan for your first house you’ll be waiting decades before you have real money to use. Why not buy a duplex, triplex, 4-plex and live in one unit, use FHA to buy the property (very low down payment required) and let the other tenants pay your mortgage?
@@jetbluee4457 you use the income from rent to buy another property. Put some away each month for taxes, insurance and maintenance / repairs. Take the rest and put it in another account with the intention of saving up to buy another property. Use banks money to help you. Then you need 20% down plus whatever you spend on rehab. I have no idea where you live or the price of housing, but I’ll use a deal I’m looking at as an example. Large building with 7 units - 4 residential and 3 commercial. A loan of $350,000 would be about $1,500 a month payment. It should bring in $7,000 a month in rent. Let’s say insurance and property taxes take up 1 month rent, which is high. The positive cash flow should be $59,000 + a year. More than enough for a down payment on another property in 1 year, or pay this one off in 4 then refinance and take the money to pay cash for another building. That’s what you do with what you buy. Banks will loan 75% of appraised value and its tax free. Just run the #’s you make money when you buy. Buy cheap, do work yourself to save money, make it nice, charge premium rent. Save and reinvest. And leverage the banks money.
If I'm looking at a Duplex/Triplex do I enter the rent from the 1or 2 units I'm renting or do I also include the "rent" I'd be paying in the 2nd or 3rd unit I'm living in? I know the ideal situation would be to "house hack" and live in the 2nd or 3rd unit while my renter pays the entire mortgage but since I'd be living there for 6 months to a year and then moving out and renting the additional unit, should I go ahead and use that additional rent in my calculation for purchase?
I have been running numbers on properties with 3.5% down and of course-the Cash on cash always comes up good. But you are saying this is bad? What if you were only planning on doing 3.5% down and owner occupy for 1 year? Love the channel watch every day.
Quick question: If am thinking of buying a 4-plex and I am putting less than 20% down, do they count the potential rental income from the other units in the DTI calculation in order to qualify for a mortgage?
For the insurance, are you putting in the Yearly insurance cost or Monthly? Because it says Yearly costs above it, but the numbers seem weird when you put in the Monthly cost.
What about the next property? Due to how my tax was prepared, my deductions counted against me and was denied a loan because it made my income look low.
I'm a veteran, my idea is to buy a MF, preferably a fourplex, on an FHA loan. That only requires that I live on site for a year. After the year I can use my veterans loan for another fourplex, I'll have to live there for two years. I should have enough cashflow after that to start doing 25% down.
Thank you buddy for the information. I have 3 questions. Would you advise someone wanting to get into rentals to take the state certification to become a realtor? Secondary do you have a lawyer write up rental agreement policy to protect yourself? And finally, based on a percentage how much more do insurance companies charge for rental property versus primary residence. I really respect your opinion, trying to search these matters on the ole interweb can be very confusing and ambiguous. Thank you Sir! Jason from Indiana (Land of huge housing shortages and skyrocketing rental costs! )
Thank you so much for this. So my question is if I put down 12 % instead of 25 %. for purchase of 200,000 for a duplex and the cash on cash return is 30.72 %. Is that still a good deal?
Chandller thanks for sharing app. One question if you can clarify, cash flow should-be no higher that 15%? Less you put down , less cash flow monthly? I already untilized FHA, low down payment , low cash return? Key don’t pay retail for property? 25% down, market drops wouldn’t property be upside down?
Thank u this is so useful. However can u do a video about the basic principles and technical terms related to real estate? It’s because I am so new to this and I’m a b confused of the message because of some technical words
Don’t forget that most people can also qualify for down payment assistance grants, requiring you to only pay 0.5% down payment and the grant pays for the other 3%. It’s never been easier to get into real estate than right now!!
You can inspect something before you make an offer. Take the inspector with you to view the property the first time. If you want it inspected after you make an offer, make the acceptable inspection a contingency on the purchase, in writing
Hi Chandler, are you a fan of foreclosures? Is it better to invest in a duplex or single family home from a for sale by owner or would you recommend foreclosures?
Hi Chandler! Love your channel! Thank you so much. This is my situation: I own my house outright in NY. I have about $750K in 3 banks in investments and I'm ready to start buying rental properties. My credit score is about 750. What type of property should I focus on buying first? Thanks again!
Found you through Jack interview from Graham Stephan... you and G are really helping allay a lot of concerns I have regarding investment properties! Appreciate all the explanations and insight!
@@frankenfaq4706 easily the most value course I’ve ever purchase. This dude is a absolute gold mine of information and it’s worth 100x the price he offers for his course no doubt in my mind.
Issue im running into is that the area i'm in is crazy expensive. 2-4 unit properties are few and far between and are close to or over a million in cost, from the ones I've seen. 1br condos are 300k+. Is there any different advice on high priced areas? Or am I just out of luck and will have to look in a different area
Dude love the effort and transparency of your video! I’m brand new to this invest in but I just bought my second investment property. The only thing is I cannot find any properties that are within the 1% rule in California Riverside county. Is California typically? harder am I looking in the wrong places?
Mortgage Insurance or PMI says on for the life of the FHA loan unless you refinance out of that loan, so if you are going to buy and hold for more than 10 years or then you should do a conventional loan. This is because conventional loans only keep PMI until you have 20-25% paid into property, which without excess payments that will happen at the 10 year mark.
You will have to pay more then just your loan because of the PMI or mortgage insurance but if the numbers work it’s so worth it to get into real estate now than waiting until you can afford a larger down
Ramsey has good advice for the avg person who has no financial knowledge and can’t control credit card spending etc. it’s terrible advice for investors and people who are great with money and are ok with smart debt
Hey Chandler. Can you explain more further why I plug in the 25% down payment? But if I'm doing an owner occupied loan I should still put down just 3 1/2%? Right?
Hello chandler, i just subscribed right now and thank you for all the great information and breakdown. I'm planning on going into my first rental. I just have one question. How is it done and why you mention about having the seller to cover the closing cost? Is that something normal to ask or is it just by being a first rental? Thank you.
Most mortgage lenders require you list the property as your primary residence for a period of time. Well here in California that is. Therefore, youre not allowed to rent out the property and start making money. And so for that time being, youre 100% responsible for the mortgage payment instead of having a tenant make payment for you.
Hi Chandler, I have a question. I own a home with mortgage on it and have lived in it for 3 years. Now I want to buy another house and make that my primary home and move into it and rent out the 1st one. How do I explain this to the bank? bank considers my 1st home as primary residence which is correct and if they lend me money for my 2nd home they might lend it as the investment property (investment loan which has higher interest rate). Although I plan to move into it and make it my primary residence after closing. please help.
Form an llc. Sell your house to the llc and rent it out. Transfer the loan or refinance and get a better rate. Buy another property for you to live in.
Amazing video bud , liked it . Keep creating more amazing content . I see you told , to buy properties which are ready to go rather than focusing on properties , which needs renovation . I’m a lil confused about the brr strategy , is it a good method to follow for my first rental property ?
Hi there! Informative video as always Chandler! I am looking to get my first rental property this year. I need to raise capital for a down payment (I live in Romania and my salary doesn’t permit me to save enough in a short period of time), I want to structure my LLC somehow in a way that my investors get a decent and safe deal in an investment, and I get a decent cash flow. Have you done this before or were all of your down payments your own money? How should I do with the closing costs? I know you propose to make the seller pay for them but if I’m already lowballing them I find it difficult to try and convince them on this… I have some reserves in stocks and some savings but ideally i don’t want to touch those.
Cash on cash return is good, I understand that, but perhaps me being a beginner I don’t see the bigger picture, my end goal is have enough rental properties where I generate monthly cash flow to sustain my lifestyle
What happens when u buy a property in your name then you quit claim into an LLC then your bank then tries to call the loan because you put it into an llc
Just subscribed. from Twin Falls ID hoping to build my empire here. #research phase. have an interesting start i own my home and im a veteran so hopefully va loan aka 0 down, for a 4 plex move into a unit and rent out my house. first time off the bat i will be renting out my house and 3 units. just need more info first.
Chandler I recently asked this on another video of yours I would really like to know your thoughts on this.. can you get a loan for a down payment of a bigger property or is that just crazy. I.E I want to jump to a bigger deal 100,000 liquid wanting to purchase in the 900k-1m market. So could I get a loan for 4-450 to make this happen with my current capital or bad idea would love to hear your thoughts! Thought I heard this idea from another big speaker.
Pay cash, get the property rented, then go to the bank and refinance at 75% of appraised value. You get your cash back plus some, then go buy more properties and do it all again.
What else would you like to know about buying your first rental property?
Hey Chandler, would love to see a video with the same title but for International investors that want to invest in USA (Im Mexican)
Hey man, if you could do a video about the different advantages and disadvantages of buying different property type. Example Single family homes, Duplexes and Apartments
I would like to know more about Creative Financing. I did get your course. I decided to pass on that Triplex. It was to much work to do for my first investment property.
How to find the killer deals? What price per sq ft and what makes a good deal? What fixes you can do for under $500 a piece?
If you quit claim it you can activate the due on sale clause which could be problematic.
Hey Chandler! I love your CDS calculator. I just ran numbers for my first property and it works amazing❤️. If you can, could you please make a video on how you bought 99 properties in just 7+ years? Really appreciate it. Keep posting such good content.💪👍🏻
Will do! Thank you!
Calculator was pretty accurate on a property I’ve already purchased that I plugged my actual numbers in. FREE calculator! How cool!! Thanks Chandler!
Just throwing this out there but for the Cash on Cash Return area on your app. It would be cool if it could be Green when it’s in a good “range” and Red when it’s in a bad range. That way we can quickly know what is a good deal and not. I know it ranges by area and such but still maybe good to have that range
That’s a great recommendation. Thanks for letting me know 👍
@@ChandlerDavidSmith when will be the update on the app?
Found your channel when I sold someone pest control, knocking on the doors, and told them I want to buy my first rental property. They're like,"You gotta watch this guy cause he did the same thing". These videos are perfect!
I think I’m 15 videos in at this point. I will say, the information is amazingly detailed and the app idea is the first I’ve seen and is different! Keep up the great work!
Thank you so much! Will do!
I wish we could get down payments that low in Canada, lowest I could find was 10% down, which still wasn't to bad. Closing on my first property in two weeks at 20 years old. I managed to find a fourplex for a really good deal! Very excited to finally get started after researching for the past few years
What all did they look for to qualify for the loan? (Income requirements)
What area?? It’s 5% down under 500k for single family or duplex.
Congrats!! Go get it!
Jeff Wybo are you the one who featured in Matt Mckeever’s channel?
@@dhandho6465 Im self employed so I had to show the last two years of earnings, all my expenses, and where the money for the down payment came from!
I love rich dad poor, dad, first time I saw it on the shelf. Just started reading it
Kevin Schmidt headway’s does that when a correction happens
Closing on First property currently.
love your content. I've been investing in real estate since 2013 in a college town. I had no mentors, and made a ton of mistakes along the way; that being said I was successful on my own. Your content has enriched my confidence and knowledge to capitalize on my successes.My early success wasn't with ought its hardships. I currently own 10 doors, income is 7926- cash flow is 3,215. I have too many "project properties" that don't produce anything, and wont with ought a cost prohibitive amount of funds. I paid cash for 6 properties over the years, 3 of which produce income (soon to be 4, another story for another time) and 1 that is mortgaged. I am sitting on roughly 475,000 in equity that I could pull down. In recent, I an hopeful for a 19 unit complex. wish me luck!
I’ve learned to finish a property Reno and have it rent ready within 4-6 months of purchase. Don’t let something sit. It drains cash flow and sits and weathers faster than if someone was living there. If you own 3 properties that cash flow go to the bank and get a loan. They will give 75% of appraised value. Then take that money and renovate what you have left. If you own some that are cost prohibitive to repair they were bad purchases and you should sell them, or find someone who will rent and do the Reno work themselves. Give them a break on rent and they will increase the value of your property. But if you have 10 doors and only 3 are producing rent I’d step back and reevaluate what I’m purchasing and why, and sell them or figure out a way to get them producing income.
How long do you recommend the time period to pay off our mortgage , 30 years ? Is it too long , what if we try to pay off mortgage of our first rental property within 5 years ? Then within that time the property will be ours right ? Or I’m I wrong ? Will it kill my cash flow over the years ?
This video was when the rate was historically low. My question is that is it a good idea to buy a single home or condo rental property putting 20% down?
Great vid. I'm a little late, lol. Just purchased a live-in/buy& hold SF, using no money down VA, and all closing costs covered. I'm sitting at 2.75% and $500 under my anticipated monthly budget. Next is to figure out how to get my next one, after putting tenants in there in 12 mos.
Love it! Go get it!
Dont u have to live in it for a year b4 u can use va again?
@@douglascarpenter5433 sorry for the late response. Yes, you agree to live in, but there is no specified time. however, it is shunned upon by veterans to use the va for investment purposes. therefore, in order to preserve the integrity of the benefit, it's recommended to stay in at least 1 year (unwritten recommendation)
@@douglascarpenter5433 as for reuse, as long as you have enough benefits from the previous purchase, you can have several homes. if it's capped at 36k for guaranteed entitlement, then as long as you don't go over that, you are good. that, or you will have to use out of pocket funding.
I am my realtor so this will be the future plans for sure
Would love to see an analysis of a property with a higher number that more realistic like 250k up to see what the ending numbers would be
The tremendous effort in presenting this process super quickly is appreciated, thanks Chan!
Everyone else: My company is giving me the day off so I’m checking out.
Chandler: Yeah, I am still going to pump out amazingly helpful content today.
Thanks my man!
Gotta work hard to make that money.
Great guide. I can’t stop watching these videos.
Thank you for the amazing content!
1) what strategy do you primarily use to find deals? Or do you just lowball a bunch of MLS properites?
2) did you ever BRRRR any of your 99 units? Or did you stick with the exact same strategy for all 99 units (20-25% down, conventional loan, save up, repeat)?
The value is definitely heavy here! When you referenced the quitclaim deed I was like yea this guy knows his stuff 💪🏽🏁
Thanks so much!
Hey I’m 22 I’m looking to invest in Real estate but stuck between taken a home loan out for my first house and later take a equity loan on it or should I take a personal loan out and buy two or three cheaper smaller homes first ! Which one should I do ?
If you’re waiting on an equity loan for your first house you’ll be waiting decades before you have real money to use. Why not buy a duplex, triplex, 4-plex and live in one unit, use FHA to buy the property (very low down payment required) and let the other tenants pay your mortgage?
@@bebin73 okay if I do that , then how do I get my second house and when
@@jetbluee4457 you use the income from rent to buy another property. Put some away each month for taxes, insurance and maintenance / repairs. Take the rest and put it in another account with the intention of saving up to buy another property. Use banks money to help you. Then you need 20% down plus whatever you spend on rehab. I have no idea where you live or the price of housing, but I’ll use a deal I’m looking at as an example. Large building with 7 units - 4 residential and 3 commercial. A loan of $350,000 would be about $1,500 a month payment. It should bring in $7,000 a month in rent. Let’s say insurance and property taxes take up 1 month rent, which is high. The positive cash flow should be $59,000 + a year. More than enough for a down payment on another property in 1 year, or pay this one off in 4 then refinance and take the money to pay cash for another building. That’s what you do with what you buy. Banks will loan 75% of appraised value and its tax free. Just run the #’s you make money when you buy. Buy cheap, do work yourself to save money, make it nice, charge premium rent. Save and reinvest. And leverage the banks money.
If I'm looking at a Duplex/Triplex do I enter the rent from the 1or 2 units I'm renting or do I also include the "rent" I'd be paying in the 2nd or 3rd unit I'm living in?
I know the ideal situation would be to "house hack" and live in the 2nd or 3rd unit while my renter pays the entire mortgage but since I'd be living there for 6 months to a year and then moving out and renting the additional unit, should I go ahead and use that additional rent in my calculation for purchase?
99 units at 29. God bless you
Have u been on the bigger pockets podcasts? Would love to hear u on there
I have been running numbers on properties with 3.5% down and of course-the Cash on cash always comes up good. But you are saying this is bad? What if you were only planning on doing 3.5% down and owner occupy for 1 year? Love the channel watch every day.
I tried the duplex but I had to do the FHA loan. Because I didn’t have 20%
Hi Chandler, do you have a video detailing on how to give an offer dependent to inspection?
Love information, detailed gives me ammunition to go out and buy now!
Quick question: If am thinking of buying a 4-plex and I am putting less than 20% down, do they count the potential rental income from the other units in the DTI calculation in order to qualify for a mortgage?
They would only count current rental income. Not “possible” future income
Starting my first semester of college in the fall and I can’t wait to get started on my career. great video man
For the insurance, are you putting in the Yearly insurance cost or Monthly? Because it says Yearly costs above it, but the numbers seem weird when you put in the Monthly cost.
What about the next property? Due to how my tax was prepared, my deductions counted against me and was denied a loan because it made my income look low.
You have to pay to play. Sit down with your loan officer and your accountant together and make sure you do things properly moving forward
Your gross income and net income are what the bank looks at. If you didn’t show enough income reduce expenses. Can you raise rent ?
I think the best way to invest right now at the moment it's btc but I'm not saying this is bad...
Yea I agree with you... Ever since I stated trading with my present expertise I have all reasons to say that btc is better way to invest
I Have being seein testimonies of this David Phillips of a person... I dunno cus i really want to trade but scared of being scammed this period
Plzz can I get his contact
This is gold, I'm saving up for my first investment next year. I'm taking notes
That’s niiiice
Btw I’m curious how old you are?
@@Christian-ws3xs I'm 18
Love it! Good luck!
I came here after watching the eviction video which was interesting but definitely subscribing and here to learn
Glad to hear it!
I'm a veteran, my idea is to buy a MF, preferably a fourplex, on an FHA loan. That only requires that I live on site for a year. After the year I can use my veterans loan for another fourplex, I'll have to live there for two years. I should have enough cashflow after that to start doing 25% down.
I focus more on the monthly cash flow , if that’s my focus , what do you recommend a higher or lower down payment ?
If I put 3.5 down can I air-b and b the property
If you put down 5% what should the cash on cash return be? 25% down is 15% coc.
Where can I find these properties with mote than a unit? duplex at last
Thank you buddy for the information. I have 3 questions.
Would you advise someone wanting to get into rentals to take the state certification to become a realtor?
Secondary do you have a lawyer write up rental agreement policy to protect yourself?
And finally, based on a percentage how much more do insurance companies charge for rental property versus primary residence.
I really respect your opinion, trying to search these matters on the ole interweb can be very confusing and ambiguous.
Thank you Sir! Jason from Indiana
(Land of huge housing shortages and skyrocketing rental costs! )
Thank you so much for this. So my question is if I put down 12 % instead of 25 %. for purchase of 200,000 for a duplex and the cash on cash return is 30.72 %. Is that still a good deal?
Plug in a 25% down and see if it’s above a 15% cash on cash return
Chandller thanks for sharing app. One question if you can clarify, cash flow should-be no higher that 15%? Less you put down , less cash flow monthly? I already untilized FHA, low down payment , low cash return? Key don’t pay retail for property? 25% down, market drops wouldn’t property be upside down?
Great content. You deserve 1 million subs.
Thank u this is so useful. However can u do a video about the basic principles and technical terms related to real estate? It’s because I am so new to this and I’m a b confused of the message because of some technical words
My area doesn't really have 4plex. Is it worth it to build my own?
I have an opportunity for a 4.9% cash on cash return ... but it’s turn key ready... it’s a preconstruction property. What do you think?
Don’t forget that most people can also qualify for down payment assistance grants, requiring you to only pay 0.5% down payment and the grant pays for the other 3%. It’s never been easier to get into real estate than right now!!
Love it!
Wait if it’s your rental property it means it’s your second home. I don’t think you can qualify for that for a house you are not living in
How do you qualify for the assistanceprogram?
I’m listening
@@ronaldo19832 not if you buy a duplex, triplex or 4-plex and live in one of the units
I’m actually tell newbies now is not the time to invest, but the time to educate yourself. Take Chandler’s course now!
Hi Chandler. Can i ask, what is your average purchase price for your 2-4 unit properties? Thanks!
I pay between 50k and 100k per unit
So you have to make an offer and have it accepted before you can do an inspection?
You can inspect something before you make an offer. Take the inspector with you to view the property the first time. If you want it inspected after you make an offer, make the acceptable inspection a contingency on the purchase, in writing
Glad I came across your channel. I am 20 years old and have roughly $80K looking to become a real estate investor. Just needing some guidance
Hi Chandler, are you a fan of foreclosures? Is it better to invest in a duplex or single family home from a for sale by owner or would you recommend foreclosures?
Buy them all
Thanks SOOOOOOO MUCH CHANDLER!!!🔥
This is simply amazing😂👑
So glad you liked it!
Is it still worth buying your first property rn given how high prices are even if the rates are low?
When are you gonna do another sale. If it goes to $199 again I will buy :)
What is the best bank to buy rental property with 3% down payment?
Hi Chandler! Love your channel! Thank you so much. This is my situation: I own my house outright in NY. I have about $750K in 3 banks in investments and I'm ready to start buying rental properties. My credit score is about 750. What type of property should I focus on buying first? Thanks again!
Found you through Jack interview from Graham Stephan... you and G are really helping allay a lot of concerns I have regarding investment properties! Appreciate all the explanations and insight!
Where would you put the HOA fee into your calculator?
How can we avoid closing costs ?
so hyped for the course
Thank you! Excited to see what you think!
So what did you think.. lol
@@frankenfaq4706 easily the most value course I’ve ever purchase. This dude is a absolute gold mine of information and it’s worth 100x the price he offers for his course no doubt in my mind.
@@MoneyMike2002 him, Ben mullah, and meet kevin literally reshaped my brain in this industry
How do you convince the seller to cover closing cost?
This is very helpful!! Thanks Chandler. We are going to the bank tomorrow and do our first step.
Awesome! Excited for you!
Hey Chandler how did you come up with the 25% down payment for your 1st rental property?
Issue im running into is that the area i'm in is crazy expensive. 2-4 unit properties are few and far between and are close to or over a million in cost, from the ones I've seen. 1br condos are 300k+. Is there any different advice on high priced areas? Or am I just out of luck and will have to look in a different area
Dude love the effort and transparency of your video! I’m brand new to this invest in but I just bought my second investment property. The only thing is I cannot find any properties that are within the 1% rule in California Riverside county. Is California typically? harder am I looking in the wrong places?
A $100k house renting for $2k per month.. what city is this??
Utah🤣🤣
Quality vlog!!! Chandler is the 💣.....I killed the 👍🏼Button🙌🏼
Thoughts on using a FHA loan to buy your first rental property?
Mortgage Insurance or PMI says on for the life of the FHA loan unless you refinance out of that loan, so if you are going to buy and hold for more than 10 years or then you should do a conventional loan. This is because conventional loans only keep PMI until you have 20-25% paid into property, which without excess payments that will happen at the 10 year mark.
Send it! Love it if the numbers work!
You will have to pay more then just your loan because of the PMI or mortgage insurance but if the numbers work it’s so worth it to get into real estate now than waiting until you can afford a larger down
Wow Chandler! You got me thinking about diversifying out of the stock market. Thanks for the content!
Hey, Chandler how do you use contractor bids to show sellers? To be honest on repairs
You include repairs needed and repair estimate in the negotiations. Offer $x and show them why
Dave Ramsey would cringe knowing there’s so many loans being taken out 😅🤣
Haha I love it!
Chandler David Smith always great content man!
HAHA
Ramsey has good advice for the avg person who has no financial knowledge and can’t control credit card spending etc. it’s terrible advice for investors and people who are great with money and are ok with smart debt
What is going on during closing?
Where can I get your calculator?
Hey chandler! Thanks for the video. Quick question, how do you know how much a property can rent for?
Look at your area and other units of similar size/build and what they’re renting for!
Look in your area. There are also online calculators. I always ask premium rent amounts to attract a better quality of renters.
Hey Chandler. Can you explain more further why I plug in the 25% down payment? But if I'm doing an owner occupied loan I should still put down just 3 1/2%? Right?
If you use FHA the rate is low. If through a bank they want 10-20% down
Hello chandler, i just subscribed right now and thank you for all the great information and breakdown. I'm planning on going into my first rental. I just have one question. How is it done and why you mention about having the seller to cover the closing cost? Is that something normal to ask or is it just by being a first rental? Thank you.
Most mortgage lenders require you list the property as your primary residence for a period of time. Well here in California that is. Therefore, youre not allowed to rent out the property and start making money. And so for that time being, youre 100% responsible for the mortgage payment instead of having a tenant make payment for you.
Buy a duplex, 3-plex or 4-plex. Live in one unit.
Hi David first watching your video my Question is how to invest in a property in other state
This guy is spectacular
Hi Chandler, I have a question.
I own a home with mortgage on it and have lived in it for 3 years. Now I want to buy another house and make that my primary home and move into it and rent out the 1st one.
How do I explain this to the bank? bank considers my 1st home as primary residence which is correct and if they lend me money for my 2nd home they might lend it as the investment property (investment loan which has higher interest rate). Although I plan to move into it and make it my primary residence after closing. please help.
Form an llc. Sell your house to the llc and rent it out. Transfer the loan or refinance and get a better rate. Buy another property for you to live in.
Amazing video bud , liked it . Keep creating more amazing content . I see you told , to buy properties which are ready to go rather than focusing on properties , which needs renovation . I’m a lil confused about the brr strategy , is it a good method to follow for my first rental property ?
What if it's a new construction would it still work ?
If the numbers work!!
Killer editing !!
Thanks man!
Love the videos man, hope I can connect with you through Aptive next year and sorry I couldnt make it to Texas this year
Hi there! Informative video as always Chandler!
I am looking to get my first rental property this year. I need to raise capital for a down payment (I live in Romania and my salary doesn’t permit me to save enough in a short period of time), I want to structure my LLC somehow in a way that my investors get a decent and safe deal in an investment, and I get a decent cash flow. Have you done this before or were all of your down payments your own money?
How should I do with the closing costs? I know you propose to make the seller pay for them but if I’m already lowballing them I find it difficult to try and convince them on this… I have some reserves in stocks and some savings but ideally i don’t want to touch those.
Cash on cash return is good, I understand that, but perhaps me being a beginner I don’t see the bigger picture, my end goal is have enough rental properties where I generate monthly cash flow to sustain my lifestyle
Hey Chandler, great video with awesome advice! I started making videos recently about short term rentals and could for sure use this information!
What about if you own a home thts your primary residence?
You can always move out. If you can’t move out then you’ll have to put 25% down
Dp you track your budget every day or week or spmething Chandler?
Try to
Chandler David Smith gotcha. How do you manage the ability to manage your money? Lol
What happens when u buy a property in your name then you quit claim into an LLC then your bank then tries to call the loan because you put it into an llc
Make sure you talk to your loan officer before you do it because most banks are okay with it
I’d form the llc first then buy a property
Your awesome thanks for sharing from New Zealand 👍😀
The 1% rule seems crazy all these houses around me are 30k or less and rent for $650 a month
Just subscribed. from Twin Falls ID hoping to build my empire here. #research phase. have an interesting start i own my home and im a veteran so hopefully va loan aka 0 down, for a 4 plex move into a unit and rent out my house. first time off the bat i will be renting out my house and 3 units. just need more info first.
Looking forward to July 10th man.
Chandler I recently asked this on another video of yours I would really like to know your thoughts on this.. can you get a loan for a down payment of a bigger property or is that just crazy. I.E I want to jump to a bigger deal 100,000 liquid wanting to purchase in the 900k-1m market. So could I get a loan for 4-450 to make this happen with my current capital or bad idea would love to hear your thoughts! Thought I heard this idea from another big speaker.
You don’t want two loans on a property
Can a house have a 3rd floor pool?
Great video
Hey chandler I’ve been wanting to start investing in real estate but just realized that I need to have a
When sitting on 500k in liquid capital. Would you recommend financing at the 3-5% down payment or going fully in for the 20-30?
Brandyn Richardson I would do 20% if you can do it. No PMI is more cash flow for you.
Pay cash, get the property rented, then go to the bank and refinance at 75% of appraised value. You get your cash back plus some, then go buy more properties and do it all again.
If you're sitting on 500k in liquid capital put down at least 25%