All Forum Posts by: Andrew Rickli

Hi all, 

I am looking at two properties to do an owner-occupied duplex. I need help deciding which house will be the better buy. I am a commerical banker but this is my first investment purchase. 

I am using an in house mortgage that we have, 97% LTV, no PMI, 4% fixed for 30 or 3.5% 7/1 ARM.

House #1--listed for roughly $169k (3 bed, 1.5 bath on each side). 

House #2--listed for roughly $150k (3 bed, 1.5 on each side). 

House #1 is a brick house in a quiet neighborhood in MD (next to a round-about), with 4 on street parking spaces, and room in the back, only grade is out front. Its currently vacant on both sides. It was previously used to house mentally challenged individuals in the county when it was owned by the agency. The realtor said that the PGI is min. $1,000/month for each unit or $24k/year. 

House #2 is a panel sided house that is renovated, in a downtown market of WV (lower income area), with only 2 street spaces, and a full yard in the back. It is currently rented on one side for $925/month for 2 years by the owners warehouse manager. The tenant has been there for 10 years. 

House #1 taxes/year roughly $3k

House #2 taxes/year roughly $1.5k

House #1 has a nicer neighborhood, better tenant pool potential, and higher rent potential to go along with a higher chance of appreciation. 

House #2 is in a lesser neighborhood, lower income tenant potential, with lower chance of appreciation BUT the tenants currently there have been there for 10 years. I can get this one and have tenants in there on day #1. 

What do you think is the best play? I know I haven't broken out expenses yet, but wanted to get a feel based on these factors. 

Thanks all!!

@Robert Fountain I am looking at buying a duplex on the north end of town, in a nicer area. 97% LTV, owner occupied no PMI. 3 BR/ 1.5 BA on each side. Realtor said it could rent for $1000/month in that part of town. Does this seam like a legitimate rental rate for the north end? It's conveniently located at a round-about (street parking for 4 cars plus an area in the back that was once a garage converted to a shed).

Eastern Panhandle of WV is growing as it's so close to MD, VA, DC, and Baltimore. It's pennies on the dollar too with prices and taxes.

What I do is call the local police department and give them the address of the property. They have knowledge of any event that has happened at that address or anything close to the property you are looking to acquire. It's free, and the officers love helping someone out. Who knows the neighborhoods and the people better than the police department?

Awesome deal Chris Paxson . I'm in Morgantown now as a Commercial Banker but am coming back to the Panhandle in February to start building a portfolio there. We should all get together!

Dakoda Spencer nice to hear your story. Keyser needs some nice rentals with Potomac State being there. Nice to see another WV member. I'm in Morgantown currently!

Vamsi K. No I found these online. I did not have these made.

Mindy Jensen the advantage would be only putting down 5% as it would be considered my "primary residence"

Thanks @Brett Snodgrass I appreciate it!

Originally posted by @Bill Kenny:

Hi @Andrew Rickli, Let chat sometime soon. I would like to find the best solution to re finance my properties I have purchased with private money, maybe you could help..

 Bill for sure can. Let me know.