All Forum Posts by: Chinyere Orie

Would you recommend using hard money for my first investment?  I'm looking to buy a residential rental property (either owner occupied or not) and I'm weighing my options b/t conventional financing or hard money.  What do you think?

If you have the time and the money, I would do it.  Like you said, it's not necessary, but it certainly is helpful.

First off, thanks for your service! In regard to your question, honestly, the market is so hot right now, it's hard for buyers to get under contract. If you're going after properties on the MLS rather than off-market deals, you'll likely be in multiple offer situations. I live in Maryland, not too far from you and here, I have buyers with all types of financing (cash, FHA, VA loans, etc) going up against at least 7 other offers on average. I don't think your agent is really doing anything wrong; it just could be that the sellers are getting better offers. Your agent should try to find out what the winning bids were on the homes that you put offers on so that you have an idea of what you're up against. I would also consider off market/FSBO properties. Also, are you able to go month to month on your lease?

Maybe partner with someone who brings cash to the table but doesn't want to do any of the heavy lifting

You won't be able to raise rents until the current leases expire.  When you buy a home w/ tenants, normally, you buy it subject to the current leases in place.  So you won't be able to change the lease terms until the end of the lease term

Congrats on your success!  Wishing you even more success this year!

 Maybe, but even with more repairs, you still may get a better return on your investment than if you go with a new property.  It all depends on the area your investing in and what the numbers look like.  Good luck!

I live in Baltimore and most small multifamily buildings (less than 5 units) are that old but offer great returns, so it makes sense to buy them Just be diligent and save up more for you CapEx and you should be good. Good luck!

My goal is to save up 6 month rental reserves for each property (not expenses/mortgage, but rental income).  To me, that's the level amount I would need to feel comfortable.

Yeah for a multifamily.  Otherwise, you're exposing yourself to a tremendous amount of liability.  Also, I would imagine there's a clause in the lease regarding outdoor maintenance such as landscaping and snow removal.