All Forum Posts by: Jahan Habib

Please add me as well. [email protected]

Thank you for the response. Fortunately, I am all set with the financing for now. However, I'll definitely keep you in mind in the future.

@Walter Roby jr Great advice! Sounds like I need to do some research. Yes, my parents are already checked out.

I am not sure if this the correct forum to start this discussion, so please feel free to move it as needed.

I am looking for some advice regarding a 2 family property that my parents have owned for more than 15 years in a small, rural town in Pennsylvania. The property values are not that high in the area and the property is definitely in a state of disrepair, as no one had lived there for more than 15 years. My parents and I realize that we are not going be there/have use for the property so I have contacted real estate agents to sell the property.

Before we sign a listing agreement with an agent, I wanted to check in with the forum to see if there are any other creative ideas/thoughts, people might have?

Some relevant details:

Located in a small, rural community

2 family, side by side units

Low cost/high rent (2% rule applies) area

Potential risks include: limited tenant base, tenant issues

My inclination is to sell and move on, as it will take significant time/capital to get it back in good, rentable condition. On the one hand, the cash flow is certainly there. On the other hand, the location is out of my focus territory (Southern New England) and the payoff period will be long. My parents don’t really care and want to get rid of the hassle associated with the property.

What are your thoughts?

Just a quick update to this thread. I am open to cross-collateralization as well.

In addition, if I need to pare it down to 1 deal, then I'd like to get the 10 Unit. Lower cost however same DSCR.

@Jameson Drew

@John Hill

@Kris Bashenow

@Jimmy Griffin

Thank you all for your response and for the key insights. I truly appreciate them.

A brief update, I am putting the Indiana investments on hold for now. I am seeing some deals in New England that are looking compelling plus I have been stretched thin with non-real estate items.

I will definitely revisit this thread and reach out to you once I am ready to invest in IN again.

I am very interested in 2 separate buildings (10 Units + 4 Units) that are listed for sale by two separate owners in the same town. The total combined price $885,000. I would like to purchase them both using a HELOC from my primary residence to fund the 20%-25% down payment. I imagine that I would need to take out a commercial mortgage. Some key details:

Location: Massachusetts

Total Units; 14 - Fully Rented

Total Cost: $885,000

Down Payment: $177,000

NOI (Combined): $126,000

DSCR: 2.20x (Projected)

I would be purchasing this under an LLC. The cashflow is very compelling, however I wanted to see if this type of mortgage financing can be arranged? I have a W2 job, other cash flowing properties as well.

Are there any lenders willing to make this happen?

Thank you for your insights. I am definitely open to Muncie along with other communities in Central Indiana. I am trying to assess which communities might be a good long term investment with solid cash flow. I am also looking to scale rather quickly with respect to units as I would like to make sure that I can acquire units at a rapid pace.

We should connect as I would certainly like to see other opportunities in the region.

Thank you for the response Ryan. I am getting the general sense that the town is not doing well. I think the high returns are definitely linked to the risk involved.

Thank you so much for the additional insights, Clint. I am definitely going to plan a trip out to IN. Right now the inventory seems to be fairly low for multis (5+ units) in places like Lafayette, Kokomo and Anderson. I'd love to be able to buy mult units rather 1-4 units to build a portfolio.

I'm looking at Ohio for the same reasons as well.