All Forum Posts by: Amber Titus

Hello! I am actively looking to purchase my first investment property and multi-family homes interest me the most. I just uncovered a local opportunity that I'd like to run by you. We are in the process of selling our primary residence in Indiana. We need to stay in the area for another year for our son to graduate, so would like to purchase an investment property we can stay in until he graduates. I found a portfolio of 3 duplexes that were built in the late 90's, new a/c in 2017 and new roof in 2020. The properties appear to be very well taken care of. Am I able to get a conventional or FHA loan with there being a total of 6 doors with me living in one or is that considered commercial if I package it all together? Perhaps, to be creative, I take out 2 mortgages (1 with 2 duplexes and 1 with 1 duplex) to finance as a personal vs commercial loan. Thoughts?

Also, what is the best way to determine if the asking price is on point or if it's inflated?  Let me know if there is anything else I should consider.  I know these properties would be very easy to keep occupied as they are in a desireable area of town - bonus, it's a college town and next to a hospital that utilizes traveling nurses!

Thank you in advance for your thoughts, suggestions and advice!

Thank you all for your advice.  We have not been able to get into the property for a walk through because the current tenant is not being cooperative.  With that on top of the mold issue and not knowing the cause,  we have decided to walk away from this property.  We will be looking at other properties that will hopefully be more promising!

Thank you all for your advice.  We have not been able to get into the property for a walk through because the current tenant is not being cooperative.  With that on top of the mold issue and not knowing the cause,  we have decided to walk away from this property.  We will be looking at another property tomorrow that looks more promising!

@Justin Hoggatt thank you for your input.  I agree, it also looks like there was some kind of plumbing issue based on the ceiling tiles.  I should have a better idea about this property after I do the walkthrough.  I am not afraid to rehab, but it needs to make sense.  With that being said, I am looking for other properties as well.  I have learned through the forums and podcast that in order to be successful, you really do need to treat this like a business and not go into it with emotion.  Sometimes, I tend to over-analyze.  I just need to make a move and know that is the most important step in this journey.  I've been on the sidelines for years (mainly waiting on my husband to get on board) and am so excited that the time has finally come where we are ready to take this first step!  I will follow up after the walk through with what I learned and decided to do.  Hoping to look at it this weekend.

Thank you both for your feedback. When I spoke with the foundation repair company, they advised to look for the exact items you mentioned - gutters, downspouts, grading. If there is a foundation issue, they said it could be a simple fix that might cost a thousand or two or it could be a major fix $10,000-$15,000. I'm hoping to do a walkthrough by this weekend to help me determine if I want to move forward. With this being my first property, I want to get a good deal, but don't want to get in over my head either. If I can negotiate and discount the cost of the house by the estimated cost of repairs (on the high end) then I think it will still be a good deal, but I'm not 100% sure I used the calculator correctly to get my COC.

My next question is this: When using the BP calculator, do I use the numbers after repair to help me determine if it's a good deal? In other words, asking price is $37,500 with estimated repair costs of $22,000 (per wholesaler) and ARV to be $129,600. I would pay cash up front and do a cash out refi after repairs/appraisal. So do I use $90,720 (70% of projected ARV) as my loan amount in the calculator to base my numbers off of? If so, my numbers are off and I need to re-calculate. Here is a link to what I calculated: https://www.biggerpockets.com/... 

I BP! I'm actively looking to buy my first rental and found an off market deal I would like some advice on. The basement of this property has wood paneling covering the foundation and there is very evident signs of moisture and mold. I contacted a company that does foundation repair to see if they could go walk the property with me, but I'm afraid if I wait for them (1.5-2 weeks) the property might be gone. I am waiting for the wholesaler to get back with me as to when I can do a walkthrough. This property is in Indiana. I'm fairly sure this is a foundation issue causing the water/mold. The numbers seem to work (providing I calculated them right...just over 10% COC and cash flows over $230/mo.) See pictures below.....

What would you do?  Thoughts and advice??

Hi Gina!  I am in your market area as well and am looking to purchase my first investment property.  Fort Wayne has a lot of industry coming to the area.  Just last week Amazon announced they will be building a fulfillment center in Fort Wayne which will bring a lot of people to the area.  

I used to live in the Kalamazoo area.  Personally, I would look in Portage or some of the other surrounding communities that are very desireable such as Mattawan, Vicksburg, Lawton, Paw Paw or even some of the communities between Kalamazoo and Grand Rapids like Wayland, Dorr, Plainwell and Otsego.  I personally would be very selective investing within Kalamazoo city limits.  I do agree from my research that the Muskegon and Lansing areas are worth looking into as well.  

Do you live in the area?  Do you plan to self manage?  Best of luck!

Hi BP!  I just got off of a great webinar with Brandon and used the calculator to work through a deal I'm going to look at Saturday.  What do you think?  This will be my first rental property, so any and all feedback is appreciated!

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*This link comes directly from our calculators, based on information input by the member who posted.