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Old 01-13-2020, 10:21 PM   #1 (permalink)
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I wanna buy 5 houses

On my long drive home tonight I was talking to my girl about my plan to buy houses at the same time she will be in the nursing program.

I figured I could ask a dumb question here about this and get a few responses.

Firstly: how many can I finance at one time?

Obviously this is just theory but realistically how many properties can I buy at one time. Say I get one, and before that one is paid off, I get another.

The reason Iím looking at it like this is because lots of houses here in ca are 5-6 hundred thousand each. Houses in the Midwest are like 100k.
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Old 01-13-2020, 10:29 PM   #2 (permalink)
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I always buy as many as I have money for. I usually end up owning Park Place and Boardwalk for the win.
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Old 01-13-2020, 10:32 PM   #3 (permalink)
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Going to depend on a lot of things, credit score and income being two of the biggies. Cost of homes and how much cash you have are going to be a couple others.
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Old 01-13-2020, 10:36 PM   #4 (permalink)
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Iíve wondered close to the same thing. My property that my house is on can be split and two houses or four duplexes could be built. Iíve wondered if I could leverage building two houses. That could open up the possibility of living in one and renting the other, living in one, selling the other to hopefully pay for both, or selling both and using the profit to start building my forever dream.
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Old 01-13-2020, 10:43 PM   #5 (permalink)
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Depending on your time frame, if you buy right and create equity in the initial property or two, you may be able to tap in to the equity to help buy others. That and start with a big pile of money and be prepared to pay for folks to live in your properties while you figure out how to remove them before they destroy the property or you go broke paying their way.

Or maybe a rich uncle could buy them for you (good luck with that plan)?

Seriously, wish you the best. Some folks do quite well with this.
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Old 01-13-2020, 10:55 PM   #6 (permalink)
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Down payment is cheep on owner occupied!!!!
Itís gonna go up considerably as the houses add up...... investment properties!!!!!!
Banks wanna get that $$$ before you do!!!!!!


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Old 01-13-2020, 11:15 PM   #7 (permalink)
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Going to depend on a lot of things, credit score and income being two of the biggies. Cost of homes and how much cash you have are going to be a couple others.
These are the first few hurdles I can see. Iím wondering what else will be waiting after I get there.

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Iíve wondered close to the same thing. My property that my house is on can be split and two houses or four duplexes could be built. Iíve wondered if I could leverage building two houses. That could open up the possibility of living in one and renting the other, living in one, selling the other to hopefully pay for both, or selling both and using the profit to start building my forever dream.
Thereís propertyís in Sacramento where a client of mine bought. They are all ready zoned for two dwellings and the rent is 16-1800. Could be x2. I think the propertyís will gain value and be a good investment and pay for them self. Thatís not the Only place Iíve looked at.


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Depending on your time frame, if you buy right and create equity in the initial property or two, you may be able to tap in to the equity to help buy others. That and start with a big pile of money and be prepared to pay for folks to live in your properties while you figure out how to remove them before they destroy the property or you go broke paying their way.

Or maybe a rich uncle could buy them for you (good luck with that plan)?

Seriously, wish you the best. Some folks do quite well with this.
I happen to have some well off uncles but Iím on my own. This is a 20 year plan. I hope Iím looking at it from all angles. Thank you with some luck maybe I will be one of those folks
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Old 01-13-2020, 11:16 PM   #8 (permalink)
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Talk to your bank. I'm sure I could finance 5 shitholes, so I'm sure you could too.
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Old 01-13-2020, 11:17 PM   #9 (permalink)
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Down payment is cheep on owner occupied!!!!
Itís gonna go up considerably as the houses add up...... investment properties!!!!!!
Banks wanna get that $$$ before you do!!!!!!


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Vacation homes is the loophole I read about. Call it a vacation home and the down and apr are much better.
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Old 01-14-2020, 12:02 AM   #10 (permalink)
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I bought 8 houses in 11 years and flipped them all in 14yrs. It takes moxy (moxie) and diligence. You think you got what it takes? Pre-qual and cashola. You got that? What you need to do is go all in. No half assed attempts to do it will float you. No other expenditures for some time. Cancel your dreams and finance this goal or you're fucked. Even lost a nice, very large home to a firestorm that demolished the whole thing into dust. $275k in profit alone... poof*


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Old 01-14-2020, 12:12 AM   #11 (permalink)
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I bought 8 houses in 11 years and flipped them all in 14yrs. It takes moxy (moxie) and diligence. You think you got what it takes? Pre-qual and cashola. You got that? What you need to do is go all in. No half assed attempts to do it will float you. No other expenditures for some time. Cancel your dreams and finance this goal or you're fucked. Even lost a nice, very large home to a firestorm that demolished the whole thing into dust. $275k in profit alone... poof*


Got moxy?
How many of those homes were actually water coolers?
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Old 01-14-2020, 12:15 AM   #12 (permalink)
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Got a few clients that do this. They're shitty clients cause all their money goes to real estate.

One couple tries to buy 1 per year. Live in it, renovate what needs work, rent it and buy another they move into. I think they have 3 or 4.

Obvious buying them right is a big part of making the numbers work. They do a lot if work themselves to add value on the cheap and get good rents from fixing shit up.

But they spend every weekend working on shit and don't have much to show for it yet. Once they get a few paid off, that will obviously change.

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Old 01-14-2020, 06:13 AM   #13 (permalink)
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I always buy as many as I have money for. I usually end up owning Park Place and Boardwalk for the win.
I always win with the orange properties. Seldom buy Park Place and/or Boardwalk. When we play, people rarely land on either Park Place or Boardwalk
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Old 01-14-2020, 07:35 AM   #14 (permalink)
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I always buy as many as I have money for. I usually end up owning Park Place and Boardwalk for the win.
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I always win with the orange properties. Seldom buy Park Place and/or Boardwalk. When we play, people rarely land on either Park Place or Boardwalk
I'm a Monopoly slumlord. Mediterranean, Ball tics, Oriental, Vermont, Connecticut. House the fuck out of them all.
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Old 01-14-2020, 07:53 AM   #15 (permalink)
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Find multiple brokers to work with. Each broker has different loan products for specific needs. One of mine even has private investors for hard to finance properties.

Pick up the phone and start calling. Meet a few over coffee. After speaking with 3-5, the story of your options will start to come together.
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Old 01-14-2020, 08:08 AM   #16 (permalink)
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I just realized you didn't mention selling them as I was typing what I was thinking about flipping them.

So assuming you are going to rent them out:

Depends on market.

If the rental market is stable and short on supply, you should be able to lean heavily on financing in some form. If you are short on cash, there are pools of direct investors you can tap into. My understanding is that is very expensive and you would like to finance out of that as soon as you have equity. I've never tried it, so don't have much legit 1st hand info. If you have 15 to 20% equity for 5 houses and enough working capital to be at 50% occupancy for the first 2 months, the bank or mortgage brokers will talk to you about it. Shop around and find one that fits what you want to do.

If the market is volatile or seasonal you may need to bump that occupancy out to 3 months.

If this is your knowledge base, I'd be very careful about jumping into 2.5 to 3 mil into debt.
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Old 01-14-2020, 08:19 AM   #17 (permalink)
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is rubirunner the new action fap?
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Old 01-14-2020, 08:20 AM   #18 (permalink)
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Vacation homes is the loophole I read about. Call it a vacation home and the down and apr are much better.
that'll only work for the first 1, maybe 2. and you'll still need 10-15% down.

If you have marginal/ decent credit, and 15-20% down there's plenty of options if you're willing to settle for higher interest rates.


If it were me, I would be very cautious about the Location/ market that you select/consider purchase any investment property within in the present day.

It's my belief that there is a bubble to burst/ correction to be seen at least in this area/ state. (for example; if the election goes poorly in november, the silver lining is the economy will likely tank and then i'll get off the sidelines and back into the Real estate market.)

And there's no way on earth i'd be playing in the ca market- half million dollar 3/2 30 yr old tract home nonsense. There's not a ton of room for those to appreciate in value ( particularly as a % of Investment at risk)
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Old 01-14-2020, 08:37 AM   #19 (permalink)
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You are going to wanna tune into the ďBigger PocketsĒ podcast and read their website and forum.
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Old 01-14-2020, 08:57 AM   #20 (permalink)
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Find multiple brokers to work with. Each broker has different loan products for specific needs. One of mine even has private investors for hard to finance properties.

Pick up the phone and start calling. Meet a few over coffee. After speaking with 3-5, the story of your options will start to come together.
So you are saying to just internet search local brokers and start cold calling from there? Or is the local part not really apply.
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Old 01-14-2020, 09:02 AM   #21 (permalink)
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Depending on your time frame, if you buy right and create equity in the initial property or two, you may be able to tap in to the equity to help buy others...

Seriously, wish you the best. Some folks do quite well with this.
Worked with a contractor who did this, he did pretty good for a while. He was using the equity to live (and pay me) though. The market was booming so he kept refinancing and buying..
The market tanked and he lost his house in Aptos and two here in Chico.

I'm looking into getting a rental here in town, but damn it foreclosed homes go for 200k.
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Old 01-14-2020, 09:38 AM   #22 (permalink)
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I think the only way to have 5 houses under one mortgage is if you bought 5 from the same owner at the same time. If not, then you would have 5 mortgages at first with an option to combine with an additional re-mortgage.
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Old 01-14-2020, 09:39 AM   #23 (permalink)
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No expert but from what I've gathered...there are a lot of factors....the biggest is how willing are you to lose everything? Leveraging yourself and properties is ballsy in this market as I feel its on the high side....not necessarily bubble,but very high and overvalued.

If you are doing the buy, live-in, rent strategy it will take awhile but it's the best way to go unless you have a fairly large pile of cash to start.
To minimize out of pocket cash you could buy owner occupied for 3-5% down. After a year you can look to do another this way. The lender will likely look at the existing home and give you income credit for potential rent to qualify your DTI....however they will only give you 75% of the yearly rental income(accounting for vacancies)

If your original mortgage was say $1500/month...rents for similar units are say $1600/month...the lender would likely add $14,400 to tour annual income as "rental income" for existing house. In this situation you will still have a slightly worse DTI because your mortgage isn't fully covered by the rent for pending purposes. With another 3-5% down in new place you may need to bump up the down to 5-10%.

Rinse & repeat....but realize repairs, damsge can get expensive...not to mention the market xould drop on rents, etc. You could got for a 2nd home on the new one...but then you won't gain any rental credit and your income wouldd have to be able to cover both mortgages out eight to get the lower rate.

If you are going to buy as an investment expect to put 25-30% dow. Up front....and pay a higher rate.
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Old 01-14-2020, 09:58 AM   #24 (permalink)
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You are going to wanna tune into the ďBigger PocketsĒ podcast and read their website and forum.
last ep Jun '18..

Bigger Cash Flow looks legit and current...
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Old 01-14-2020, 10:00 AM   #25 (permalink)
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Co-worker does it, has 4-5 homes already, and looking for another. Location is a big thing - lots of govt jobs here that aren't going anywhere (30+% of the workforce), so housing is stable. Tech makes up a good chunk of the rest. Foreign money is also coming to town because of taxes added in other big markets, so homes have gone up 20% in the last year, or so I've been told by people looking for their first home.

Change locales, and the story is completely different as is the risk.

If you are planning on fixing to rent, make sure it's worth it. She took a long time to renovate one of the units, and it would have made more financial sense to contract it out vs the lost rental income.
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