All Forum Posts by: Andrew Cheek

@Timur Salikov @Bud Gaffney I love the idea of leverage! I'm comfortable factoring in the HELOC cost to make sure it doesn't put the properties at negative CF. On the duplex if I have 45k in equity, MV/Debt 165/120 I think I could pull 12k?

Timur for due on sale, what does that mean exactly? I like the idea of LLC transfer for a few reasons. If I wrap them LLC, would a commercial lender use that "portfolio" as collateral for a commercial loan?

This is all so helpful and really motivates me to keep pushing. Can't thank you all enough for the support. @Jon Kelly I appreciate this feedback on goal setting. I'll get more specific I like the 1-3 year target. Visualize it make it happen. 

@Andy Crawford @Joseph Cornwell @Michael Craven Thank you all for the encouragement! I would love to connect with people here locally so I will be reaching out soon. It's a great idea to surround yourself with others who share the same goals and who also have more experience than me. My mentor just retired and bought a farm in IN so this will be very helpful haha.

Cincinnati has so much to offer looking forward to building more velocity as the portfolio scales. I look at it like an IRA. Diligent long term investing will increase YOY returns with time. Real estate can yes be slow in the beginning but there are so many ways to control the strategy just have to be smart and scale appropriately.

Hello Cincinnati BP! I did an owner occupy duplex deal in 2018. Fantastic learning experience and start to building up a rental portfolio. I just refi'd and did another owner occupy into a SFH in Norwood. Planning on seasoning and renting this out in a few years. But,

I want to get Property #3 within the next 12 months. I'm not sure which angle to take. I'm researching:

1. Hard money loan. Buy a low priced bldg with hair, fix and bring rents up to market, refi and pull cash. (I know some of these details but not all, I've never tried HML)

2. Do a conventional investment loan at I'm hoping, 15-20% down. But I'm not cash flush yet I would struggle with a down payment. 

I'm not afraid to put personal work in on some basic renovations and contract out the rest. Cost effectiveness is key on #3 I'm just stuck on how to scale effectively. My goal is to build up a 8-10 unit portfolio over the next 8 years or so if possible. That's the dream at least. Any thoughts are very much appreciated, cheers!

@Sitaram Koppaka Saylor Park is near Delhi and "deep westside". I have a realtor that has a few larger multi units out there. The area is a lot of older buildings B/C class. But like much of the westside, great cash flow as opposed to the more pricey east side. No hate I'm just a Westsider myself! I don't personally know the rent/own percentages for that zipcode a Realtor could pull that for you. Definitely worth a look depending on your goals. 

Investment Info:

Single-family residence buy & hold investment in Norwood.

Purchase price: $228,000
Cash invested: $2,000

Second property. Purchased this one owner occupy with plans on renting out after property has seasoned.

How did you find this deal and how did you negotiate it?

Had a great investment realtor working with me made all the difference.

How did you finance this deal?

VA Loan owner occupy

Im currently looking at 2-4 units with cap rates 10-12 C+ class. It's tough right now to find that deal and something that is not overpriced. Does anyone feel that the cinci market is still pretty hot? 

Andrew

@Caleb Jordan Hello,

I have one duplex and am considering researching HML for the purpose of BRRRR, maybe fix and flip, or buy an auction property, fix and rent. My basic understanding is that if the interest rate allows for the loan payment + mortgage payment to be less than your rent, your are technically in the money.

Underwriting seems tricky and I'm a bit unsure how to build my case to a lender. Could you offer any guidance? Thank you very much.

-Andrew

Thank you all for the tips this is why BP is great, the educated community. Thanks again, Andrew

@Bryan Hartlen That makes sense thank you Bryan. I'm still researching LLC's and different tax efficient strategies. I'm still in baby step mode but I'm hoping to learn how to write things off effectively before I get into more properties. Thanks again!

Some basic numbers for thought about COC return/velocity. If your goal is long term CF.

You could put 40k down on a turnkey 4-unit. Say if brings in 2400 per month. If it CF's (post mortgage pmt of course) at 10% that is about a 7.2% annual cash on cash return. This is just an example but this would be stable CF with no interest rate risk or early re-payment risk. Velocity can be tricky I'm still new myself but I think about it a lot!

-Andrew