All Forum Posts by: Austin Steed

 Sweat equity and house hacking might be the best route to get into Real Estate investing. So you are on the right track! 

I would try and get a light cosmetic rehab with low rents. Rehab and then get current market rents. If you spend too much on the rehab this will dilute the benefit of being a low down payment loan. With little cash in a deal and a positive cash flow you can see great Cash on Cash returns. 

I started house hacking in 2019 in Columbus Oh and repeated it every year for the next few years. 

Yup agree with Remington here. Get both parties to sign PSA and will be much more likely they'll sign at the closing table as well

I have multiple duplexes that need this. What are the cost on submetering water in the Columbus OH area?

Sounds like a good BRRR to me.

With this scenario I would go construction loan that rolls into perm debt. Or go hard money and then refi with secondary market financing or a commercial loan with 25 - 30 year amortization. You can for sure someone with a longer AM then 15 years

 Fannie/freddy just changed conventional multi family owner occ's to just 5% down. I believe this is a better loan product for 3 reasons: 

- PMI will eventually fall off the loan. FHA mortgage insurance last the life of the loan.

- FHA loans have the self sufficiency test. On 3-4 units going FHA the rents will have to exceed the payment.

- You'll have a stronger offer to sellers with conventional financing.

You're off to the right start, try and get taxes in a good position then find the right deal! I started househacking in Columbus, OH 5 years ago

 Big advocate for Columbus, you can still cash flow and have strong chances for appreciation with a growing city. I've been investing here since 2019!

 The largest development I've done we didn't have to partner with the GC but the bank did underwrite them. Reviewed taxes, liquid funds this kind of thing. This was on an 11 unit property in Columbus and construction loan was 1.1M. 

I personally wouldn't partner with a GC, unless I knew someone very well and even then wouldn't be likely. I would recommend trying to build more relationships with bankers. More community banks that will do construction loans on a portfolio loan. Hard money lenders probably won't underwrite a GC too extensively or at all but you'll get beat up on points and rate. 

If going the build to rent route your ideal scenario would be to get a construction loan that rolls into perm financing once complete. Only one closing and no surprises if rates change again at all. 

Don't forget to add development fee with bank to your business. Will help your CoC returns.

Best of luck!

Feel free to add me to your buyers list for Ohio Franklin county! 

Columbus still has limited inventory so any deal that is solid you should be able to move quick. 

Welcome! Investing in Columbus has treated me well over the years.

My thought has always been to follow the larger developments and then ride the wave. To me Columbus as a whole will see growth and appreciation but if you can get in the right areas you can amplify that appreciation. 

I can PM you now a GC in Columbus OH