Help With Next Choice for New Investment Property

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Help With Next Choice for New Investment Property

Jameson Waltz
Member since 2022 · 6 posts · 6 votes

Hello,

I am a little lost. I need to know my next step. I Bought a Condo two years ago, but because of my DTI, I couldn't buy anything else because of the two mortgages I have. I spoke with my friend who is a realtor, and another person who is a mortgage lender that deals more in investments, and his other team members, and it was pretty much agreed across the board, I need to sell the condo, because I only profit 135$/mo. That Condo will be off my hands June 1st. I should be roughly profiting I believe 90 to 100k. I live in Colorado and I am completely priced out here. I need to do something where I can start making some actual profit, and also have a lower hit on my DTI. I don't know where I should go, but I was thinking Ohio because I have been going there my whole life and I know the people, and I have family out there currently. Can anyone offer some next steps. I want to make sure my next move is the right one.

-Jameson Waltz

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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
3y
Quote from @Jameson Waltz:

Hello,

I am a little lost. I need to know my next step. I Bought a Condo two years ago, but because of my DTI, I couldn't buy anything else because of the two mortgages I have. I spoke with my friend who is a realtor, and another person who is a mortgage lender that deals more in investments, and his other team members, and it was pretty much agreed across the board, I need to sell the condo, because I only profit 135$/mo. That Condo will be off my hands June 1st. I should be roughly profiting I believe 90 to 100k. I live in Colorado and I am completely priced out here. I need to do something where I can start making some actual profit, and also have a lower hit on my DTI. I don't know where I should go, but I was thinking Ohio because I have been going there my whole life and I know the people, and I have family out there currently. Can anyone offer some next steps. I want to make sure my next move is the right one.

-Jameson Waltz


It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.

As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.
[email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
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  • Dominic Pizzi
    Lender · Freehold, NJ · Member since 2022 · 236 posts · 85 votes
    3y

    Jameson, 

    I think using a DSCR lender in a desirable investment area would suit you better than a DTI lender. Reason being is that a DSCR lender does not take into account DTI when judging the property, only the property itself gets judged.

    Send me a PM if you need additional info!

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    3y
    Quote from @Jameson Waltz:

    Hello,

    I am a little lost. I need to know my next step. I Bought a Condo two years ago, but because of my DTI, I couldn't buy anything else because of the two mortgages I have. I spoke with my friend who is a realtor, and another person who is a mortgage lender that deals more in investments, and his other team members, and it was pretty much agreed across the board, I need to sell the condo, because I only profit 135$/mo. That Condo will be off my hands June 1st. I should be roughly profiting I believe 90 to 100k. I live in Colorado and I am completely priced out here. I need to do something where I can start making some actual profit, and also have a lower hit on my DTI. I don't know where I should go, but I was thinking Ohio because I have been going there my whole life and I know the people, and I have family out there currently. Can anyone offer some next steps. I want to make sure my next move is the right one.

    -Jameson Waltz


    It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.

    As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.
    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    2Reply
  • Brayden Hrycko
    Lender · Allentown, PA · Member since 2023 · 207 posts · 38 votes
    3y

    Hello @Jameson Waltz,

    DSCR would be great alternative for you to not worry about the dti where it just looks at the properties performance and your credit score. I would start interviewing realtors in the areas you're considering to give you a better idea on where you want to be.

    Also, how hands on do you want to be? Maybe do some research on short term to mid term markets and take advantage of that? Maybe a mulit-family is an option as well? You have to really dig into your goals and these specific markets to see what works and if they align to your style of investing. 

    0Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    3y
    Quote from @Jameson Waltz:

    Hello,

    I am a little lost. I need to know my next step. I Bought a Condo two years ago, but because of my DTI, I couldn't buy anything else because of the two mortgages I have. I spoke with my friend who is a realtor, and another person who is a mortgage lender that deals more in investments, and his other team members, and it was pretty much agreed across the board, I need to sell the condo, because I only profit 135$/mo. That Condo will be off my hands June 1st. I should be roughly profiting I believe 90 to 100k. I live in Colorado and I am completely priced out here. I need to do something where I can start making some actual profit, and also have a lower hit on my DTI. I don't know where I should go, but I was thinking Ohio because I have been going there my whole life and I know the people, and I have family out there currently. Can anyone offer some next steps. I want to make sure my next move is the right one.

    -Jameson Waltz

    I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just a few weeks ago, I helped a client close on a deal getting them 20% cash on cash return. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!


    [email protected]614-300-7535
    Jimmy Lieu, Red 1 Realty4.9121 Reviews
    WebsiteView Page
    1Reply
  • Jameson Waltz
    OP
    Member since 2022 · 6 posts · 6 votes
    3y
    Quote from @Brayden Hrycko:

    Hello @Jameson Waltz,

    DSCR would be great alternative for you to not worry about the dti where it just looks at the properties performance and your credit score. I would start interviewing realtors in the areas you're considering to give you a better idea on where you want to be.

    Also, how hands on do you want to be? Maybe do some research on short term to mid term markets and take advantage of that? Maybe a mulit-family is an option as well? You have to really dig into your goals and these specific markets to see what works and if they align to your style of investing. 


    I have definitely thought about DSCR Loans. I met with someone last year, and only thing holding me back was my credit score at the time, so trying to build that back up! Thank you for the reminder of that option.

    -Jameson

    0Reply
  • Jameson Waltz
    OP
    Member since 2022 · 6 posts · 6 votes
    3y
    Quote from @Remington Lyman:
    Quote from @Jameson Waltz:

    Hello,

    I am a little lost. I need to know my next step. I Bought a Condo two years ago, but because of my DTI, I couldn't buy anything else because of the two mortgages I have. I spoke with my friend who is a realtor, and another person who is a mortgage lender that deals more in investments, and his other team members, and it was pretty much agreed across the board, I need to sell the condo, because I only profit 135$/mo. That Condo will be off my hands June 1st. I should be roughly profiting I believe 90 to 100k. I live in Colorado and I am completely priced out here. I need to do something where I can start making some actual profit, and also have a lower hit on my DTI. I don't know where I should go, but I was thinking Ohio because I have been going there my whole life and I know the people, and I have family out there currently. Can anyone offer some next steps. I want to make sure my next move is the right one.

    -Jameson Waltz


    It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.

    As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

     Out here in CO I basically had everything but a contractor. Had a Realtor, Manager, and Lender. The condo was so new though, I didn't have to worry bout repairs... at all. But having those four in another state is a great group. Thank you. I think that takes away my other concern, because if I have those four, someone can handle repairs and concerns while I live here in CO and I can pay for it living here.

    0Reply
  • Harrison Chow
    Real Estate Agent · Columbus, OH · Member since 2019 · 292 posts · 364 votes
    3y
    Quote from @Jameson Waltz:

    Hello,

    I am a little lost. I need to know my next step. I Bought a Condo two years ago, but because of my DTI, I couldn't buy anything else because of the two mortgages I have. I spoke with my friend who is a realtor, and another person who is a mortgage lender that deals more in investments, and his other team members, and it was pretty much agreed across the board, I need to sell the condo, because I only profit 135$/mo. That Condo will be off my hands June 1st. I should be roughly profiting I believe 90 to 100k. I live in Colorado and I am completely priced out here. I need to do something where I can start making some actual profit, and also have a lower hit on my DTI. I don't know where I should go, but I was thinking Ohio because I have been going there my whole life and I know the people, and I have family out there currently. Can anyone offer some next steps. I want to make sure my next move is the right one.

    -Jameson Waltz


    Hi Jameson! When considering OOS investing, make sure you are investing with a reputable team and develop your Core 4 - realtor, property manager, contractor, and lender. BP is a great place to start! I highly recommend starting a conversation with a few and select who you are most comfortable with and whose goals and values align with yours the most.

    As for markets, look for those with strong economic fundamentals, such as job growth, population growth, and low unemployment rates. This can help ensure that there is a high demand for rental properties in the area. I'm glad to hear you're considering Ohio! I personally focus my investments in Columbus, which has seen a significant increase in property values and is expected to continue this trend in the future. This is due in large part to major corporations like Intel, Honda, Nationwide Children's Hospital, and Wexner Medical Center investing heavily in the region and creating numerous job opportunities. Additionally, Ohio has favorable landlord-tenant laws that provide landlords with more rights and protections.

    If you're interested, please let me know how I can assist you further. My team and I also have a good infrastructure in place for out of state investors (i.e. connections to contractors, property management companies, lenders etc.) I would be delighted to discuss this topic with you in greater detail!

    2Reply
  • Sam McCormackBusiness Member
    Real Estate Agent · Cincinnati, OH/NKY · Member since 2021 · 1k+ posts · 833 votes
    3y

    @Jameson Waltz

    Hi Jameson, good on you for learning how to go through a tough situation like that. In terms of a market to invest in, OH is a great place to start looking! Columbus, Cincinnati, Cleveland, etc. 

    They each offer their own special hint to REI. Cleveland, cash flow. Columbus, more appreciation potential. Cincinnati, is a mix, and can sway depending on where you invest.

    I am in Cincinnati if you are ever looking into Cincinnati. Prices are lower here but so much potential. Let me know if you are interested! 

    [email protected]859-443-4952
    Sam McCormack Realtor
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    2Reply
  • Brady Baker
    Real Estate Agent · Overland Park, KS · Member since 2020 · 3 posts · 3 votes
    3y

    Hey Jameson, it looks like you've got a lot of good feedback from the comments above. I've heard lots of good things about the Ohio Market, and the big investors I've been working with have been looking at Ohio as a place for them to expand to, so it's probably a good option. 

    I am in the Kansas City Market and my clients took the winter off from buying here, but have indicated they are wanting to start back up here towards the end of the summer. We've seen lot's of good returns here and it's been a growing market for years. Definitely lower prices here on both the Kansas and Missouri side. I have contacts from search to occupied services if you would like to check out KC!

    2Reply
  • Ben RhodinBusiness Member
    Realtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
    3y

    Hey @Jameson Waltz! I know it's probably too late, but I'm not sure I agree with your Realtor's and Lender's assumptions on your current property. The Rental income should offset your DTI unless you were showing a loss on your tax returns for it. I typically am not a fan of selling properties, unless a new opportunity makes sense. But knowing the Denver market, would your condo make a good candidate for an MTR? I am not sure where it is located, but if it is in the Denver Metro, that would be a good way to increase your cash flow by a couple of hundred bucks at least, which will outperform most things in the Midwest, and the condo will continue to appreciate, which is where you build wealth.

    Either way, I would recommend buying a new primary here in Denver that you could house hack, instead of exploring out-of-state opportunities. The main reason is, that by minimizing your housing expense you'll be putting a ton of capital in your pocket that isn't taxed, instead of trying to generate more income. The second reason is, that you'll be able to put 3-5% down on this property, making your capital go further instead of having to put 20% down. and finally, because the Denver market will continue to appreciate. Then if you still have capital left over you can explore buying an out-of-state investment using a DSCR loan.

    [email protected]
    0Reply
  • Jameson Waltz
    OP
    Member since 2022 · 6 posts · 6 votes
    3y
    Quote from @Ben Rhodin:

    Hey @Jameson Waltz! I know it's probably too late, but I'm not sure I agree with your Realtor's and Lender's assumptions on your current property. The Rental income should offset your DTI unless you were showing a loss on your tax returns for it. I typically am not a fan of selling properties, unless a new opportunity makes sense. But knowing the Denver market, would your condo make a good candidate for an MTR? I am not sure where it is located, but if it is in the Denver Metro, that would be a good way to increase your cash flow by a couple of hundred bucks at least, which will outperform most things in the Midwest, and the condo will continue to appreciate, which is where you build wealth.

    Either way, I would recommend buying a new primary here in Denver that you could house hack, instead of exploring out-of-state opportunities. The main reason is, that by minimizing your housing expense you'll be putting a ton of capital in your pocket that isn't taxed, instead of trying to generate more income. The second reason is, that you'll be able to put 3-5% down on this property, making your capital go further instead of having to put 20% down. and finally, because the Denver market will continue to appreciate. Then if you still have capital left over you can explore buying an out-of-state investment using a DSCR loan.


     The condo is in C-springs, itll  be off my hands june 1st. I have moved 3 times in basically 8 years. Spent 5 years at the first home in Littleton, made money off that, lived in Aurora for one year and hated it, made money off that because the market is dumb, and now in Highlands Ranch, love where I live. I don't want to be anywhere near Denver unfortunately haha. I just can play in this new market thats turning into California. I only profited 135$ a month off the first investment. So Looking to be able to buy my next place with little to no mortgage. I am looking into things like traveling nurse residency type things, air bnb type options or even long term family rentals. i would love to have a duplex personally, but someone told me I have to live in one half of the duplex for me to do that, and I can't rent out both livable spaces.

    0Reply
  • Ben Einspahr
    House Hacking Specialist · Denver, CO · Member since 2016 · 411 posts · 396 votes
    3y

    @Jameson Waltz not quite clear if you are looking to buy a new primary to HH or new investment property. To answer you question about the duplex. If you are wanting to buy it as a primary, you will need to use an FHA loan. Convention loan is 15% down minimum even if it is your primary. Regarding renting out the duplex. Assuming the location you invest in does not allow nonowner occupied rentals less than 30 days (STR) you can still rent out as furnished MTR as @Ben Rhodin mentioned. 
    At a glance, sounds like you are more interested is cash flowing investment property so 100% of your mortgage is covered, plus some. If that is the case, I would consider Pueblo. Not as robust market as Denver and COS but your 90-100k can still do some damage.  I can follow up with a few recent case studies we have from recent investments
    Regarding the DSCR loan. I would consider that as a last resort loan.

    0Reply
  • Ben RhodinBusiness Member
    Realtor · Denver, CO · Member since 2020 · 338 posts · 331 votes
    3y
    Quote from @Jameson Waltz:
    Quote from @Ben Rhodin:

    Hey @Jameson Waltz! I know it's probably too late, but I'm not sure I agree with your Realtor's and Lender's assumptions on your current property. The Rental income should offset your DTI unless you were showing a loss on your tax returns for it. I typically am not a fan of selling properties, unless a new opportunity makes sense. But knowing the Denver market, would your condo make a good candidate for an MTR? I am not sure where it is located, but if it is in the Denver Metro, that would be a good way to increase your cash flow by a couple of hundred bucks at least, which will outperform most things in the Midwest, and the condo will continue to appreciate, which is where you build wealth.

    Either way, I would recommend buying a new primary here in Denver that you could house hack, instead of exploring out-of-state opportunities. The main reason is, that by minimizing your housing expense you'll be putting a ton of capital in your pocket that isn't taxed, instead of trying to generate more income. The second reason is, that you'll be able to put 3-5% down on this property, making your capital go further instead of having to put 20% down. and finally, because the Denver market will continue to appreciate. Then if you still have capital left over you can explore buying an out-of-state investment using a DSCR loan.


     The condo is in C-springs, itll  be off my hands june 1st. I have moved 3 times in basically 8 years. Spent 5 years at the first home in Littleton, made money off that, lived in Aurora for one year and hated it, made money off that because the market is dumb, and now in Highlands Ranch, love where I live. I don't want to be anywhere near Denver unfortunately haha. I just can play in this new market thats turning into California. I only profited 135$ a month off the first investment. So Looking to be able to buy my next place with little to no mortgage. I am looking into things like traveling nurse residency type things, air bnb type options or even long term family rentals. i would love to have a duplex personally, but someone told me I have to live in one half of the duplex for me to do that, and I can't rent out both livable spaces.


    Not sure what you are getting at with the duplex, if you are meaning in regards to Airbnb or Short term rentals, you would just need to be in a location that allows Non-Owner occupied STRs, or an area that does recognize the two units as a single residency. I would work on getting clear on your goals as far as an investment, as there are numerous ways to look at a "good deal". Sounds like you are looking for cash flow over everything, instead of COC return, appreciation, or even overall ROI. So I would get clear on what a deal looks like to you, and then go find the location and asset type that can achieve it. Work backward towards your goal.

    [email protected]
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  • Najma Osman
    Real Estate Agent · Columbus, OH · Member since 2023 · 161 posts · 217 votes
    3y

    Hi @Jameson Waltz, congrats on starting to grow your portfolio out of state! I think this is great, it pushes you to be more of an investor than a landlord. When considering OOS investing, look for markets with strong economic fundamentals, such as job growth, population growth, and low unemployment rates. This can help ensure that there is a demand for rental properties in the area. I personally invest in Columbus, Ohio and I think we have a great hybrid market for appreciation and cashflow with affordable price points. 


    When vetting homes that are out of state, make sure you work with a trusted agent who has experience in the local market. They can provide valuable insights about the property, its condition, and the local rental market. If you are considering Ohio, you have an advantage as you are already familiar with the area. Feel free to reach out if you have any questions!

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