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Updated almost 2 years ago on . Most recent reply
Dialing in first property
Hello BP, excited to finally be dialing in my first property. I am looking at Euclid, OH, and have found 4-5 properties that I think work really well for me. I have to go the DSCR route for financing so I have to submit one property to them. I have a few questions if anyone can answer. This is my first investment, so many things are still confusing despite reading books and researching.
- properties I'm looking at are about 100K, CF/month is averaging about 250-350 after running the numbers very conservatively
- CoCROI are about 10-15% and ROI, including equity and such, is about 20-30%. Feeling confident about these properties.
1. If I submit the property to DSCR loan but the property turns down an offer, do I have to reapply for a new one for a different property and get a new preapproval, or let my lender know and they just update it?
2. After showing interest in the property, how much of a window do I have before I have to sign the contract? I need to get a contractor, inspector, etc and will want to have them lined up before signing to ensure I am fully aware of the estimates and can negotiate.
3. I am an investor from CA but can only get my feet in the water in this general area because of funds, so I am looking for a reliable and competent PM in the area that someone may have experience with and able to reference!
Any other guidance is welcome, Thank you all!
Most Popular Reply
The contractor is something I would recommend finding a recommendation for from either an agent, another investor, or a PMC. You can have them picked before offering. As for what you mean with relation to the "window" of signing the contract, I'm not 100% what you're asking for here but I can provide an idea that might help. When a property comes on market here in Cleveland, a great deal will be pending in like 1-3 days, a good deal will be off market in like 2-5 days, and even a mediocre deal can still go pending in less than a week in some cases. You have to be ready to act fast.