All Forum Posts by: Christopher Nerio

Hi @Roger Lin, I was referred to you and your group by a helpful member here on BP. Looks like I missed this past meeting. Can you please give me information on the next meetup? Thanks.

Hi @Jesse T. thanks for your response. Yes, I am trying to network with investors in the area. How much do you think is a good amount of cash to start with for a down payment? I know it depends on the property but I have heard mixed median housing costs for our area so was curious to know what you think is a good starting point. Thanks @Stacy E. for your help as well. What I was thinking was that I would use about $15K from the equity in my house, renovate key areas in the house (a lot of the work I can do myself) and then sell it for $385K (that is about the average the comps in my neighborhood are selling for). My goal would be to net a minimum $50K. Then I would use the money I made to purchase another home as a primary residence, using about $20k for a down payment on whatever I can afford comfortably and rent the basement out again. Finally, I would use the rest of the money left over to buy an investment property. My other train of thought is to keep the house, continue to pay down the loan, take out a HELOC and purchase a property using that money. I like to use cash is my major reason for thinking about selling the house but ideally I would like to keep the house because it is in a great area. I know @Russell Brazil mentioned in his interview on BP that he liked debt. Debt makes me uncomfortable, but I know it's because I haven't learned to think about it the same way Russell does yet. Thanks again everyone.

Ok, thanks @Russell Brazil. I just finished listening to the BP Podcast, Episode 192 and heard you share some great information. It gave me hope in finding investment deals in our area. I am persistent so I know it will happen eventually. Anyway, do you think it is smart to try to get a conventional loan, even if my interest rate would go up substantially? I ask because I could then use an FHA for a second property, is my thought process. Would you happen to know any realtor in my area (Leesburg, Ashburn, Sterling, Loudoun County) that I could contact? I would like to learn my market as best as I can. What meetup do you attend in the area, I am currently seeking a group to get connected to? I am going to an event with Northern Va RENC next week.

Hey Russell Brazil thanks for responding. I will contact Upen soon. That's what I was thinking too. My house has about 20% equity and i actually doubt it to be honest. I bought the house as is in April 2015, but believe I bought the house too high in my opinion for investment purposes. This is before I knew about BP and other resources. I read 1 book and had an opportunity to buy and rent immediately so I took the chance. So now I'm thinking of selling or just trying to make the best out of the situation. That's why I was thinking of selling the house. Use the little equity to renovate, sell (bought for $305k, sell for about $385k.)

Hey BP, is there anyone that currently invests or sells realty in Leesburg, Va or Loudoun County that could help me with a few questions I have? I am looking to get advice on what to do with my primary residence which I bought through an FHA loan with a 3.375% interest rate. Currently, I rent the basement and would like to invest in real estate in 6 mo. to a year. I have equity in my house so was thinking of either taking out a HELOC to set my self up or use the equity to update my house and sell it and use the money to buy another home and investment property. Interest rates have gone up now but was still thinking about refinancing in order to get into a conventional loan to able to use an FHA to buy an investment property. My home is in the 20176 area of Leesburg. If anyone can help me, it would be greatly appreciated. It would be awesome if someone in Leesburg had time to speak to me personally. I'll buy lunch, coffee, breakfast, or fix something for investor advice. Thanks.

Awesome, thanks @Miguel Rubio, I will check them out  

Hi BP family, I am wanting to attend a meetup, seminar, or networking event in the Northern Va. area to learn how others in my area are investing. I see that Northern Virginia RENC has an event next month that I will attend. However, I see that to become a member I must pay. From others experience is it necessary to pay to gain the connections and knowledge? I don't mind paying for knowledge or connections, just want to make sure it's worth the investment. Will a free meetup or other type of event that I don't know about yet accomplish the same thing? What are suggestions for groups or meetups to get connected with for someone starting out? I live in Loudoun County. Thanks.

Hey, thanks for your response @Marcus Auerbach. Leesburg is great but pricey. Apparently, this investor says she makes the house practically brand new, including roof, HVAC, etc. depending on the condition of each aspect of the house (max $25K). I did use the calculator but only looked at the cash-on-cash return. However, what you told me is what I am thinking. Just to make sure I understand, you are saying that although the property would cash flow, the cash flow will take a while to build wealth, in addition to the cost of expenses, such as the ones you mentioned. Also, the property will not be worth the money I put in since it will be a renovated house next to a run down property or bad neighborhood, which I did see that the county's assessment of the property is way lower than the money I would invest into the house (don't know if that really matters, maybe that's a good thing?). Lastly, you are saying that it will not appreciate in value, which is a big concern of mine. Am I understanding correctly? I do plan on buying the property cash but was going to use a loan for the renovation. I would be interested in the property package you have mentioned or any properties in my price range for that matter but wouldn't it be a similar situation as what I'm talking about? While I've been listening to podcasts and reading forums I've heard many people speak about Milwaukee. Thanks again.

Hi BP family, I am new to investing in RE and I have recently made a connection with an investor in Youngstown, Ohio. She said she owns 10 rentals and has been investing, strictly, in the 44507 and 44502 zip code area of Youngstown for 4 years. The prices of the SFHs is what really intrigues me. From what I've researched and what she told me, it is a low income area and has about a 13.5% vacancy rate. The lady makes her money through her rentals, managing rentals, and renovating the properties. So I buy the house, her company renovates it, then manages it. I live in Northern Va. She said that with about $45K ($5-10K for property, $5-10K for material, $15-25K for labor), which covers any major repair or replacement, I would have good cash flow. However, from what she told me, the rents are between $400-650/mo. According to my calculations it seems that my max investment that I would like would be $25k total to receive the monthly income I would like. The other concern I have is that she said that she doesn't do yearly lease agreements. Her tenants are all on a month-to-month cycle, which she said is normal in the area because with the area being low income, sometimes you get a bad tenant that you want to be able to evict them fast. However, she did say that because it's low-income many times the government pays their rent and that she tries to do a good screening of the tenants before hand (credit check and background check). Anyway, has anyone had success in Youngstown, OH? I hear it's kind of like Detroit? Should my max investment be less or more than $25k? What is the average rental rate there? Are the costs of labor and material accurate? Is it an area, that if the economy took a turn for the worst, that my rental would still be cash flowing? Any advice would be great. Thanks BP family.

Hello, my name is Chris and I'm new to BP. I live in Loudoun County. My goal is to buy and hold properties. I currently own 1 property that I rent out the basement. After writing down my goals and trying to figure out my strategy, I realize my strategy may be tough to do in the area I live (DC/MD/VA). I would like to buy SFHs that are between $10-50k with a 15-20% cash on cash return and plan on using a HELOC to finance the property. Also, I wonder if condos may be smarter since it would be less cost in maintenance and repairs, although I am aware about condo and HOA fees? Is the difference in property type dependent on the market or area? With the financial criteria I have, it seems logical for me to invest out-of-state. However, I do not even know where to begin to look. Again, ideally I would like my rental to be close by in order for me to manage my first one by myself but I barely find any homes under $100-200K. If there is anyone that is from my area and can give me some advice or even meet up (breakfast, lunch,or coffee on me) to discuss how they invest in this area that would be great too. In addition, if there are any people who invest out-of-state and are willing to share some knowledge with me on how to begin, that would be greatly appreciated. I'm looking forward to getting everyone's insight and advice, everyone on BP seems so helpful. The forums are great too. It would be awesome to make new connections online or in person. Thanks.

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