All Forum Posts by: Dave DeMarco

Try PenFed Credit Union. Give them a call and tell them your situation, they may do loans under 50k.

I invest in this price point. I also have been looking in Alabama. It is very possible to make money in this class of property but you MUST do your due diligence regarding the neighborhoods and the rental market. Find locals who know the city and neighborhoods you are interested in and work with them. If you can't,  don't bother. Stay out of war zones - you will make a ton of money and then give it all back. Ask me how I know...

Make sure it's at least a C-class neighborhood and be open to section 8 vouchers. Make ABSOLUTELY SURE you have a worthy property management company behind you. It's not going to be easy because the PM business is a very tough one, but a good one is worth their weight in gold. If you can't find one - don't bother and move on to a different market or area.  I have not pulled the trigger in Alabama because I have not been able to meet these basics as of yet.

The Cleveland/Akron market offers these properties also. Lot's of neighborhoods that people think are horrible that offer nice opportunity. 

Good luck and keep us posted!

Good to hear James. Sorry this happened to you. 

@James Wise

I understand the dilemma James. I would be (just me) formulating a "worst-case" plan if I were you. In the current climate, plus the power of the internet, these things can get out of hand quickly regardless of the fact that this is not your intent or doing.

@James Wise

Wow James, congrats on single-handedly re-segregating Cleveland! You evil bastard! :)

It is VERY interesting and really no surprise at all that his map matches so closely.  James you cannot let this stand (IMO). Any plan to defend yourself against this demonization or are you going to let it go?

Handy article about interviewing a PM from the blogs.

https://www.biggerpockets.com/renewsblog/2015/10/09/questions-ask-property-management/

@Account Closed Cleveland Property Management

@Matt Gilroy

I invest OOS. I’ve been looking to get property closer to home which led me to Fayetteville. I haven’t pulled the trigger mainly because of the flooding issues. Too many other similar markets without the risk IMO. I do not carry flood insurance in Pittsboro where my primary residence is. 

@Matt Gilroy 

Careful in Fayetteville. Most of it was under water 2 weeks ago because of the hurricanes (yes multiple) and it's prone to flooding. Flood insurance will be an absolute MUST whether the home shows up on a flood map or not. Be prepared to renovate every time a storm comes through which will cost you time and money. 

Not saying the area is a bad investment, just know what you are getting into and build it into your numbers. 

@Account Closed

5.25% interest only, 80% NOO LTV and I think the fees were between $400-$500. Great bank, call them.