All Forum Posts by: Adrian DeGraff

@Daniel B. Popcorn and a lawn chair.

(edit: then again I'm not thrilled with my neighbors atm for similar reasons, so I might be a bit biased)

Hi there @Elsa Woods

Welcome to the forums. Have you checked out the beginner's guide to REI? As a newbie, I have to vouch for it three times over. It really is an excellent square one when it comes to investing.

I'd say this warrants a consultation with your real estate attorney. I'd tell em exactly what I was thinking step by step. It's a chunk of change, but it beats the remote possibility of prison and/or financial ruin.

@Mark Gruetzmacher Why not? If you've identified the market that you want to operate in, and mobile homes are the only thing around at your price range, and you have no phobia against them (far as I can tell) then I'd say "make the best with what you got".

I agree with Sydney, it doesn't have to be a permanent thing. Just enough to get you out of the 50-60K investment range.

@Antonio G. Welcome to BiggerPockets!

Few things:

1.) I would never pay 10K to learn anything (edit: outside of a college education), including REI.

Why?

Because the internet exists. There are always people out there who are willing to answer any and all questions that you may have without paying one red cent.

There are worthwhile investments in your education. A 10K powerpoint presentation isn't it.

2.) If you want to learn from the ground up, read this from start to finish.

http://www.biggerpockets.com/real-estate-investing

3.) Listen to these (at least the relevant ones)

http://www.biggerpockets.com/renewsblog/category/podcast/

And ask questions whenever you have them. I'm new myself, but I'd like to help you where I can. That search box at the top right corner will probably be more helpful though lol.

Illinois: $1100

Connecticut: $700

And the issue with using LendingClub would depend on the lender right? And if it's been seasoned for a month or more, who'd object?

AFAIK, my DTI would be fine (I'd still be under my prequal amount)

On expenses, I'm using the following numbers

10% Vacancy

10% Capital Expenses (each backed by a 3K cushion to start)

10% Property Mgmt (though I might initially try do this myself)

Taxes - Illinois at $100/mth | Connecticut at $33/mth

HOA: only Illinois which is about $150/mth

Insurance: $60 each

After all that, I was still around 50% for both (Illinois - 47% and Connecticut - 54%). I just didn't post the entire thing up front to save space until someone asked.

Seconded.

Looking forward to seeing you around Wallace!

Oh yeah lol, the monopoly thing is just to obfuscate until I have contracts in place.

So taking the feedback that I got from the first thread, I adjusted my price range down to something I could afford without much financing on the down payment.

With that in mind, I found two more properties. (I'll skip the details unless people actually want/need to know)

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Illinois Avenue: Mostly young, established professionals or brand new families. About a B+ to A- neighborhood.

3 br/2.5ba

Price: 75,000

CoC vs 50%: 23%

Cap Rate: 8.3%

Allin: ~$12000

ARV: 90,000

Built in early 2000's

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Connecticut Avenue: Next door to the university, crime isn't an issue in the surrounding area but can be if you go too far out. Mostly college kids

3 br/1.5ba

Price: $40,000

CoC vs 50%: 16%

Cap Rate: 12.3%

AllIn: ~$11000

ARV: 55,000

Built in late 1950's

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I can afford one with no problem, but ideally, I'd like to add both by using P2P financing through lending club. I'd ask for 15K, buy both, do some minor repairs, appraise it for full value, cash out after awhile, pay lending club back, and repeat the process with the 10K left.

TLDR: But does that sound feasible? Am I going for too much as a first timer?

Actually, you're right. I stand corrected. Every FM lender I could find jacks the minimum up to 20% for multifamily properties.