All Forum Posts by: Daniel Clem

I'm looking for my first multi family property to start some cash flow. I have approximately 3,000 for down payment and was intending on going for an FHA loan. Most of the properties I've found so far that are worth considering are zoned commercial and therefore no go for FHA.

Does anyone here have a 3 to 4 unit property they would be willing to part with in the Southern Indiana or western Cincinnati areas? I am also interested in possibly a land contract as that would eliminate the 4 unit limitation that FHA imposes.

Any offers and ideas are much appreciated.

Thank you and God Bless. 

Just an update, I have not closed on a property yet. The one mentioned had an accpted offer put in literally days before I would make mine and was a solid one so I consider that one lost. Probably for the better as in learning more about renting. It was farther from town than ideal and would be farther for most to drive to work and hence slightly more difficult to keep rented. As well as I am finding that most all the multi family properties I'm finding are zoned commercial including that one and therefore will not qualify for a FHA loan.

So I'm continuing the search and looking into other options for financing. Interested in the concept of seller buyer contract sales but still only have a out 5,000 for down payment so that may not be an option. 

Any input would be greatly appreciated.  Needing a multifamily that will net at least 400-500 cash flow after all expenses in order to help save up for the next down payment on the second property 6 months to 1 year later. 

Thank you all, and God Bless.

I am collecting all my materials up for applying for my first FHA loan, ( only second loan period for that matter and first of greater than $9k) And he is requesting 2 months of bank statements. Which is fine. But must I leave my Routing and Account Numbers showing? Just makes me a bit uncomfortable.

Sorry if this is an extremely newbie question. But I've always tried to lean on the side of caution.

Thank you and God Bless

Yup, I will be a live in landlord. Its one of the stipulations that the credit union gave for the FHA loan I'm quoted for. Semi-Taxes are listed by the realtor to be around $712 / 6mo equalling out to be 120 or so a month. As I make improvements over time, will that increase much? Hopefully at a lower rate as my ability to increase rent say once a year or between tenants depending on improvements.

Not "in love" with it,. But a great benefit to this one is that there is a very large attached warehouse (not garage) that will work very well for storage of materials for this property as well as other properties I hope to find in the coming years.

Thank you both very much. I found the site through the podcast, and really enjoyed it, thank you.

I will try to stay active here, and not only when I need help, hahaha. 

God bless you and your businesses.

I am working with an agent by the name of Steve Woolum, simply because his site is how i found this particular property. But he seems all smiles, no down sides, all is looking up everything is great. Which that alone makes me want to get as many opinions as possible, compare options an information before making a decision. As my first purchase of this size, I don't want to make a huge costly mistake that would poison my endeavours from the start.

One thing I noted when searching this property on different sites is that it looks like it dropped $10,000 back in March 2015. So perhaps that means they will be less willing to give on the current price. The closer to $60,000 the better. The small town it is located in is another example of the small communities that are dwindling away in terms of stores and small business. The old man that owns it, apparently also owns half the modest sized town and his heirs just are not real estate people. I will try to enquire deeper as to why it has not sold yet, but will wait until after tax time as those papers will aid the bank's approval. I don't want to seem like a "Hungry Buyer".

The small town aspect does not scare me as that is the kind of community I prefer to live in and know many others that are the same.

As a side note when trying to find tenants, what are the best advertising methods? I know papers are common, but I also found a couple websites specifically for apartments and rentals.

Thank you all and God bless

I am currently looking at my first purchase prospect, though still keeping options open to others. It is a 4 unit in a small town. So low crime rate. Viewed it Wednesday, it seems pretty much ready to rent, other than new locks for personal security reasons. Currently winterized so will check all pipes and wiring ect before any deal is locked in. But all cabinets and counters tops are good, appliances included except washer and dryer for the 2 units setup for them. So seems to be all but turn key. Asking 79,000 the 2 units with 1 BR 1 BTH are rated at 450, the 2 units with 2 BR 1 BTH are rated at 550. As part of the FHA loan i will be living in one, I plan to be in a 2 BR as I will be getting married in 1-2 years while living there. If I do make an offer, I plan to start low, say 58k? Or is that too low?

It has been on the market for 3 years I believe, and the owner's niece is selling for him as he is 94 years old and she is settling his assets. So she has not had any tenants in house as she does not want to be a landlord.

What should I look out for, as well as what improvements should I look into to help attract good tenants?

Thank you for any help, and God Bless all of your business endeavo

Hello everyone,

I have a request for advice on a property but will first introduce myself. If the property advice should be made a separate topic please tell me.

My name is Daniel, and I am 27 years old. I have zero first hand experience in real estate, but have a few friends that do rentals currently, but don't focus enough on them to really make it a serious business and cash flow. So I do talk with them about their experiences, but am trying to learn from their mistakes to avoid repeating them. I have contemplated going into rentals but being unemployed since 2010, living with parents doing odd jobs and part time different places to get by and still save cash. I am currently full time employed at essentially a factory for 7 months now, at $10 an hour, and from word around the place, won't go above $15. That made me become more motivated to get into rentals now that FHA loans will be possible. I have found a credit union that has unofficially agreed based on my income, credit, ect, to lend to me at 3% down and about 4.1 percent interest. Just need to do the paperwork.

So praying to be able to find the right path and grow in the areas personally and financially to make this a serious form of cash flow, perhaps one day be full time.

Thank you and God Bless all your businesses and endeavors.