Agent in Training, Seeking personal investment advice

**Doodah** · 03-19-2009, 09:10 PM

Hello everyone,

This is my first post, and I have a few questions.

My names Joe, I am 27 married with a 18mo old son,
I am currently taking online classes to become an agent (3rd day) in California, I currently live in Texas. but will soon be moving back to Bakersfield California,

With the job market for my current field a job looks distant and at the urging of a personal friend and very succesful Realtor and former "power broker" I am entering the field of Real Estate, and he is attepting to bring me on to his current company.

My wife and I are interested in possibly picking up a rough foreclosure and rehabbing it, We will most likely occupy the home while in construction, We are currently looking at homes and duplexes in Bakersfield Ca and surrounding farming towns.

Our current financial situation is 25K in savings, and 50k in 6mo CD (out in sept), I am currently unemployed in texas and have been since January after moving here for a job and being laid off and we are looking at older homes in the 35-50k range, that need minor to moderate work. The area we are looking has a high renter population and low rental availiblity.

We are still on the fence as to wheather to immediatly attempt to re-list the home when completed or to rent it and go from there with another home, Our short term goals are to get either enough flips or enough renters to let me attend college full time, while also working as an agent, and my wife stay at home (lofty goals I know) and of course our long term goals are financial independance,

I have moderate handyman skills and know what I can and cannot do, and what I will need a contractor for. but this is still a scary prospect,

So other than any advice you can squeeze from what I have provided, a few questions I have are.

Is this feesible?

Will a lender assume a loan on a fixer that we will rent?

Can we get a loan easier if I put say 70% down.

Am I screwed because i am unemployed?

We both have good FICO's Mine 710, wifes 730, will this really help us.

How much could I feesibly try to borrow for say a 4 plex or duplex, with our situation, given the potential rental cash flow?

So there it is any advice would be welcome with open arms....

Thank you.....

**Vegasloanlady** · 03-29-2009, 03:30 AM

After reading your post, I must say that your goals would have worked about 3-2 years ago. Giving the current shut-down on a lot of loan programs for No doc loans, you will not be able to get financing for your new homes, even if it's a plain new one.

To make your case look worst is to consider a property in disrepair. The appraisal will note the condition of the property in his/her report and the lender will most likely turn down your loan.

You Have to negative going.

1. unemployed
2. subject property in need of repair

So you may have to go the hard money and that equals a high rate.

My advice to you is to consider other options because getting into property flipping requires a lot of money and can burn up your savings quickly.

**gjtrafl** · 04-12-2009, 06:33 PM

Even a bigger risk than the home purchase is your career change. Personally I think you should not buy anything but rather wait to see how this career change works for you. You may not even like it!! If you did manage to buy a home, you would be more locked in. Who knows... after a few months, your primary career may open back up with another job opportunity that you could act on if you were not tied down.

I think you need to give everything more time to develop and keep your options open.