All Forum Posts by: Brianne Leichliter

I suggest purchasing this BP book.  It's valuable to learn the different strategies.

https://store.biggerpockets.co...

The little to no money down strategy is based on using other people's money (OPM).  

$15,000 with no job currently doesn't sound like a solid strategy to invest right now.  You probably don't want to deplete your cash at this point just in case.

Partnering with a RE investor where you can offer something of value to learn the trade is ideal if you have available time.

I bought two of my properties with $0 down in the past year.  It's doable, but requires networking, offering something of value to the other person.  In my case, I found a private investor willing to put 100% of the purchase price and closing costs down for 1-year with interest only payments and a balloon payment.  My strategy is to refinance before the 1-year.

You need to have solid numbers though to make sure you can still cash flow.

I agree on reaching out to the utility companies directly.  Trust me when I say that "average" from one property to another in the same area is not typically a smart move.  There are a lot of factors that impact utility costs.

Reaching out to the utility companies and asking for the average over the last 12 months will give you a figure to use for your analysis.  If the property is vacant, those numbers won't be accurate and you'll need to do something else.

I've never had any issues with utility companies providing me the information on the property.

I use Cozy.co for my background and credit checks.  I also use it for my property management software because it's free.  Background and credit checks are $24.99 each or $39.99 if you do them together and the tenant pays directly so you don't have to collect any money.

Tenants pay their own electricity. Landlord pays for gas/electric for ththe heating system and pays water.

I'll add closing costs, but my main concern is cash flow. Those wont impact the monthly cashflow.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

Need some feedback on this one. I'm making a couple assumptions here.

I don't normally deal with commercial mortgages, but this one is a 5 unit. The rates I'm getting from my broker are 4.375%-4.5% for a 5/1 ARM.

I factored in the property management at 10%, but I'm planning on self managing.  The down payment would be financed by a private investor. 

Initial thoughts?  Does this look like a good deal at first glance?  I know terms of the private loan for the down payment could change this significantly, but hypothetically, if I had the cash, would this appear to be a good deal?  What should I change?

Note about the property - there is still room to raise rents.  2 of the 5 units have not been renovated.  It's not something I would do immediately as it is 100% occupied.

I am also looking for some great contractors that service the Cincinnati and surrounding areas!

I'm looking at a duplex that currently has separate furnaces, both being boilers with radiant heat (radiators, not ceiling, floor or baseboard).

The second story unit can easily be converted from a 1BR to a 3BR to maximize the property, but I would have to add heat to areas that are currently not heated in the attic.

I am thinking instead of dealing with radiators, that I should convert to electric baseboard heat. Seems like it would save me on maintenance with bleeding the radiators and potential leaks.

Either way I have an added cost to heat the extra units, but do you think it is wise to do a full conversion to the upstairs unit to electric baseboard?

@Yonah Weiss

I have a Bachelor's Degree in Financial Accounting and a MBA in Global Management.

@Tyler Erickson

Interesting info. I'm looking into a 5 unit and can immediately raise the rents on the property with the intent to eventually cash out refi.

From the lender I'm currently working with, they are telling me that the appraisal may not change for several years. The plan to increase NOI was to increase the property value. Is this the case or does the lender not really understand the commercial appraisal process?

@Eddie LeGrand-Sawyer

Can you provide more detail on this program? Or where can we go to get more info?

Thanks!