All Forum Posts by: Daniel Jarzynski

@Allan Smith compas range from 63,000 to 76,000. A house across the street (also 2 bed, 1 bath), in much worse condition, sold for 65,000 in April.

You're right about adding a property manager to my numbers. Even though I'll be managing this one myself, I'm sure I'll need one eventually. Thanks!

While looking for a quadplex to purchase with my VA loan, I found a SFH that feels like it may be a good opportunity. I was set on buying a multi-family property so I could house hack, but the price point of this SFH would actually allow me to use conventional financing, and continue looking for a multi-family with the VA (primary residence) loan. This will be my first investment property, so I'm trying to get as many opinions as possible. Is the CoCROI return good enough? Is the low price/low return worth the effort? Anything I'm missing in my numbers? Any tips, advice, etc. Thank you all in advance for any input!

Brief Description of the property: 2 bed, 1 bath, built in 1923 (updated electrical and plumbing). This house is basically a failed flip, and the owners seem desperate to sell, probably to pacy back loans. It was sold for $25,000 4 months ago and completely rehabbed: new metal roof, new appliances, new cabinets, new counter tops, new flooring, new carpet, fresh paint. It was originally listed for $82,500 3 weeks ago. The price already dropped twice, to $73,900. After viewing the property, today, the listing agent reached out to my realtor to inform her that the owners are willing to accept an offer $10,000 below asking price. We never discussed the price with the listing agent and/or owner, so their desperation makes me think they'll go even lower I''m thinking we can submit an offer for $60,500). Now the bad stuff. It's in an C neighborhood, and located about 75 yards away from non-profit organization which gives food to the homeless, and has 4-6 people living on the corner at all times. I'm worried this might scare away renters, and possibly buyers when I choose to sell. The neighborhood has also had an annual appreciation rate of 2.4% since 2000.

Numbers:

Purchase Price: $60,500 (12,100 down + ~2,000 closing costs)

Monthly Rent: $750

Mortgage: $231 @4%

Taxes: $58 

Insurance: Unknown - I will have to wait till Monday to start getting quotes. I used $60 to run my numbers for now

Vacancy: 10% - will most likely be lower as turnovers in the city are very quick

Maintenance and CapEx: $150 (10% + 10%) - this house has brand new appliances, new roof, and the owners had the water heater and HVAC inspected with no issues.

Rent - Expenses = $176/mo

CoCROI = 15%

Does anyone have some insights on the Johnson City, TN market? More specifically, the best neighborhoods to invest in, and which ones to avoid. Also, if you have any recommendations for realtors, contractors, loan offices, etc. please let me know!

I moved here in March, and plan on buying property starting Feb 2021 (I didn't file taxes in 2018, so I have to wait till next year to have 2 years worth of returns). I plan on using a VA loan to buy a multi-family property in Feb, conventional (20% down) loan for a second property shortly after, and an FHA loan early 2022 (to take advantage of the lower interest).

I am looking to buy my first investment property in early 2021, a multi-family home which will also be my primary residence. I am eligible for the VA loan, and will have about $50,000 saved, so I have the option of either 0% down or the traditional 20%. There are a lot of requirements that come with the VA loan: the property has to be in good condition, and require minimal repairs; no manufactured homes; foreclosures and bank owned homes don't qualify; it has to be a primary residence for >12 months; and many more.

Does anyone here have any experience using the VA loan? More specifically, using it for a multi-family property. What was your experience, and would you recommend I limit my search to properties that meet the loan requirement criteria, or pass on the 0% down opportunity?

I will be buying property in eastern TN, where multi-family properties cost $120,000-$200,000. Financing with 20% down would still leave me enough money to make minor repairs, and I have a $35,000 credit limit if I buy a higher end property, and/or one that requires extensive rehab.

Thank you in advance for any help, I look forward to becoming a part of the BP community as I begin my journey to becoming a real estate investor!