All Forum Posts by: Michael Magno

Hi Cam, Realtor and Investor in the Cleveland market.  Welcome to BP.  Depending on your strategy and expectations, deal can be found all over the greater NE Ohio Market (Cleveland, Akron, Canton, et al). 

@Gary Dezoysa

Ah that’s good to know. You can get much more favorable terms that what you using in your analysis.

I am an agent and investor in Ohio. I've got lenders offering 20% down products, with 30 year terms, and rates in the 4's depending on DTI, credit, etc.

Originally posted by @Gary Dezoysa:

I'm running the numbers on an 80k example house in an Ohio market. 20% down works with a 4% rate at 30 year amortization. Switching to 7% at 25 years the numbers go bad. 

Here's an example: 80k house, $800 rent, 54k mortgage, 6.8% rate, 25 year term. COCR 1% and DSCR of 1.06 means the financing converts it to a non-opportunity:

Am I missing something guys? I haven't even included points into the above. Seems impossible to make commercial loans work on SFRs even in cash flow markets. Yet others post here that they're making it happen. My guess is:

1. They're coming with maybe 50% down

2. Or they get deals deeply under market

Gary- Is this a house? A duplex?  Some type of commercial property?   

Welcome to BP! Good luck with your RE Career and Investments! 

Hi Daniel, Welcome to BP!  As a former hospitality worker myself, FOH for many years, I can tell you from experience, making the jump into Real Estate full time was the best decision I ever made, as long as you have a great support system at home, which I am sure you do.  Your work ethic will help you shine in the real estate business. 

Hey Erik Welcome to BP.  I am an agent and investor in the Akron and Cleveland markets (and anything in between).  If you make it over to Akron, we should connect!  

Hi Kevin, welcome to BP, I know your frustration, as an agent and investor myself.  However, given today's landscape you may want to change up your strategy a bit.  Going after a property the day it goes on the market is tough.  You might want to strategize with your agent to look for properties that have been on the market a "while".  In my market when someone doesn't want to pay asking price, I tell simply we need to wait until properties have been on the market for 21 days or better yet, a property that has been under contract, and then came back on the market for one reason or another.  

Off market deals are a good way to source properties as well, but they can be difficult because many wholesale deals need cash only, fast closings, small due diligence periods, and can be tough to navigate.  

Good luck with your search.  You will find a property! 

 Hi David welcome to Bigger Pockets! I am an Ohio native, however I am in SW Florida myself this week working on the purchase of my first vacation rental! This is a great place to network and meet like minded folks.  

Hi LeeRoy, welcome to BP! Taking classes?  Are you getting your license?  If you are, good for you! Great people and resources here! 

Hi Scott, Welcome to Bigger Pockets! It's a great resource for your investment journey!