4 houses for 160k in Ohio

[Brian Sanchez]

Last night I went to my first meet up group with Temecula Valley Real Estate Investors. The night was very informative and the presenters and guest speakers appeared to be very educated and have been in the industry for 30+ years. At the end of the night a deal was presented by the guest speaker in collaboration with the Hard money Lender. The guest speaker/investor said he has exclusive rights to some properties in Akron, Ohio. The properties are tenant occupied and managed by property management. Current rent is 500-700 or more a month. The deal was the HML would provide up to 75% and buyer funds the 25%. The total cost for one property was 45k. Or you can get 4 homes for 160k. The total p.i.t.i. Is roughly 1k/month. Ultimately a cash flow of 2000/month. The term is 7 years, after which the home is owned free and clear. The Homes are in great college neighborhood.

Everything sounds great and I did not feel pressured or that he was trying to sell me. He provided the info and discussed how traditional ways of finding deals is difficult and requires a lot of time. The deal was being presented to us because of his relationship with the HML and he wants to help give back to those looking fir a start.

I am weary as this would be our first deal and I would need to put a 40k DP which I would have to use an unsecured loan to fund. I have been looking to invest it out of state real estate and i have researched Ohio because the cash flow for the minimal cost of homes is very favorable.

What are some concerns or questions I could or should be looking at?