All Forum Posts by: Account Closed

To bring everyone up to par, here is where I stand. I have recently graduated college and accepted a job in my field of study (Residential Property Management).  I have been interested in several different properties and wanted to consult with BP'ers before I begin looking at finance options. 

I have no student debt, car payments, or any other debt except for rent on my current apartment. 750+ credit score. Properties I am looking at are between $50,000 - $80,000. I am able to put up to $20,000 down but would like to put less if possible. I'm hoping to be able to put down 20% of the purchase price. 

Also, if I chose to purchase a turn-key property will I be able to apply 75% of the rent amount towards my DTI ratio?

I guess my main concern is how difficult finding financing will be due to the fact I have less than two years of work experience with the new job and being fresh out of college I feel some lenders will not take me seriously.

Thanks in advance!

@Dmitriy Fomichenko

I'm not 100% sure what kind of account it is off the top of my head. I need to ask him next time we meet. I do know it is NOT any type of IRA account. Judging by your description of the education account it is not that either. I was unaware of this account until recently so I am still learning more about it and weighing my options. Last time I talked to adviser the brief description he gave me was the account is now in my name and the money is currently invested in "XYZ" mutual fund. I mentioned to him that I may want to sell off the funds and use the cash for real estate in the future. He said this would not be problem and that I would just have to pay the capital gain taxes whenever I transferred the money to my personal account. I don't know if this help at all. In the meantime, I will figure the actual account type.

Thanks for the responses. I am hoping to find out a few options before we meet next so I can do some research on my options rather than walking in to his office blindly. 

I hope this is the correct forum to post this question. 

I currently have a mutual fund account with around 25k that I would like to use towards the purchase on an investment property. Long story short, my parents set this account up for me when I was born and they have added to it my entire life. Now that I have graduated college, the account and money has been turned over to me. As of now, the only option I know of is to sell the funds, withdraw the money, and then pay taxes on all of that money. Then use what is left towards the purchase of a property.

I was wondering if anyone on BP knew of any other options that would have some tax advantages? I plan on talking more with my financial adviser but thought I would do a little research beforehand. 

Thank you to everyone who has offered to help. I'm continuing talks with the owner to gather more information. When I get a little closer to making an actual deal I will reach out to you guys.

I must say, this is my first real post on BP regarding an actual purchase. I am humbled by the willingness of everyone to offer their advice and expertise. It's great to know I have somewhere I can fall back on to ask questions, especially being new to single-family rental properties.

I appreciate all the info guys! I guess I'll bring up another question why I have some of the local guys on here. Who do you use for real estate agents? As I stated earlier this will be my first purchase so I would like someone who has worked with investors and is knowledgeable. The owner of the home is a Indiana broker but I have heard it is better to have a separate buyer and seller agent...can someone confirm this?

I have an agent who I have worked with a little bit on past properties I was interested in but he is very slow and I feel like he is more worried about his commission than me.

I will be purchasing cash so I hope that will make the process easier.

Shawn,

Rent has been confirmed for the past year. However, I am going to be receiving the past few years to see how they compare to current lease term. Market research tells me this is slightly high so I may use this as a negotiating point.

This will be my first buy and hold so I am nervous and excited at the same time. I'm trying to get all my ducks in a row and make sure I have accounted for everything. 

I appreciate the help, and as always I am open to advice.

Thanks for the replies. The house is right by 46th and Guilford to be exact. @ryan mullin, yes you are right with the high property taxes. I was in the process of figuring out what made them so high but your explanation makes sense.

 @Shawn Holsapple , numbers are as follow and have been verified. I have 5% management fee because I self-manage but have one maintenance person I use which is included in the 5%.

Purchase Price:60K

Rent $1,050.00

Annualized rental income $12,600.00

less

Vacancy $1,260.00 10%

RE Taxes $1,620.00

Insurance $782.00

Management $630.00 5%

Maintenance $1,260.00 10%

Utilities/HOA $-

Reserves $630.00 5%

Operating Expenses $6,182.00 55%

Net Operating Income $6,418.00

Quick question for any local Indianapolis investors.

I am looking at a long term buy and hold property I have found off-market. The property is located near 46th and College ave. Can anyone give me some info on this area? I know it is close to Butler University, the fairgrounds, and also still fairly close to Broad Ripple. The house is in excellent condition with major rehab done in 2009. I am confident in the house but would love some advice on the area from people who have  experience in the area.

Thanks in advance!

I appreciate the comments guys! Just thought it was an Interesting topic and wanted hear others' thoughts. 

Hello everyone. First off I will start by saying this is my first post on BP, although I have been a frequent visitor on the site. My brother and I are both into flying drones and using them for aerial photography and video. With our HD cameras and editing software we are able create very clear images and videos. My question for you guys is has anyone thought about taking pictures or videos of their properties for marketing or selling purposes? I have seen large retail stores and office buildings use this but wondered if it was something that interested other owners? Any input is welcome, thanks.

Also, I wasn't sure what forum topic to put this under.