All Forum Posts by: Arthur Clark

Hello all,

I would like to hear what you would do in this situation. Currently I am looking to purchase my first rental/owner occup duplex by end of year. Since this is my first I am not sure if I am over analyzing. My realtor Mike Love of Keller Williams has been great but it is my final decision to make.

Using @Brandon Turner four square property analysis method I am considering a duplex that rents for $600 per month currently. I have attached a copy of the worksheet. Page 2 is the numbers I am using to evaluate which includes $1200 monthly income ($600 from the tenant + $600 from myself).

Units are metered separately and rents in this area range from $575 to about $650.

Would you consider this an okay starter property? Are there other analysis/calculators I could try before making an offer?

I welcome any input.

Thank you in advance!

Hi @Sharon S. I am from and currently live in Akron. I am familiar with the different areas throughout the city. Send me a message to let me know how I can help! Thanks 

In the near future I will be using an FHA loan with a low down payment to purchase my first investment. I used the cash flow formula found on BP but it seems that the cash flow is small if not negative. What type of earning should I expect in the Akron area. Please see the example below. Let me know if you would make any adjustments to the way that I am calculating this.

I calculate a few of these daily  for practice. 

Highland square area. 

Loan amount $110,400

Gross rent: $1350 including $675 from a tenant and $675 from me. 

minus 

Mortgage $841 PITI

Repairs $100 ($50 per unit)

Cap Ex $100 ($50 per unit)

Vacancy $65 (roughly 5% of the rent)

_______________________________________

$1106 in expenses 

$1350 - $1106 = $244 cash flow

I just finished reading a book by Todd Fleming. The book is called “If you can’t wholesale after this”. Great book. He also has a website thekingdomrealestate.com that may have a course.

Craig Garrow Dennis M. I have been looking at comps. He will be underwater or close to it after repairs are made. I am going to ask him to pay a lump sum of the mortgage and land contract the remainder to me. When all done the home with be worth around 30k. In your opinion does this seem like too much leg work for a small deal or is this a great opportunity to learn a lot on my first deal?

Craig Garrow Craig thanks for the feedback. Did you do a long term land contract or do you plan to refinance later?

Has anyone acquired a rental property through the use of a land contract? If so please share your feedback on the experience. Situation: Local motivated seller is in need of relief from his monthly obligation for a sfr investment property. The home is in need of some repair and would not qualify for a mortgage in its current condition. Also I am working towards qualifying for a first time home buyer program that I will use to obtain a multi family property so I can not take out a mortgage for this particular property. Any feedback on creative ways to buy and hold this property would be appreciated. Thanks

Hi BiggerPockets I will be investing in the Akron, Oh area. I have a question for those that do business in this particular market. As you search for potential deals do you target any particular area or zip code? This could be for buy and hold SFR or fix and flip. Any and all input will be appreciated. Thank you

FHA allows you to go up to 4 units as long as you live in one of the units. The lender you are working with may feel that like 4 units are risky. Send me a PM I have a lender that will do it.