All Forum Posts by: Dave DeMarco

@Andrew Flora

PenFed Credit Union. Open an acct online for $5 or $10 to become a member and call the mortgage dept. I have 5 equity lines with them between me and my wife. They will limit the number you take out. Easy to work with, lend everywhere, responsive and in some cases a desktop appraisal.

@Ross Smith Try PenFed CU

@JoAne Baptiste @Arun V. @jason ngo @James Wise

PM's and email sent

@JoAne Baptiste No Pictures - the unit needs a total rehab. PM me for copy of estimate.

@James Wise  PM sent

@James Wise @Tom Ott @Megan McGinty

I have acquired this townhouse in a deal with another property and have decided to sell it. I don't have enough funds to renovate it and keep my reserves where they need to be while I scale up. The property needs $20k in renovations which I have an estimate for. It includes a new furnace and water heater. It is provided by my management company which manages several properties in this complex. I can provide the estimate to you. Renovation time is <2 months if you have them do it.

The property is in a C class neighborhood and less than a mile from the new Amazon fulfillment center in Warrensville Hts. The complex sits at the intersection of I271 and I480 with great access to the greater Cleveland area. Downtown in 15 minutes, airport in 10 minutes. The rents will range from $650 - $800+ depending on how you choose to rent it. Section 8 programs in Cuyahoga County will pay you on the upper range and there is high demand for 3 bedroom units. I would highly recommend that route.

I own 2  other units in this complex and the numbers breakdown as follows. (REAL numbers)

HOA - $125 They are responsible for the exterior and common areas. There are no special assessments.

Taxes - $650 pr/yr

Insurance runs me just under $600 pr/yr on my other units.

In Cleveland the owner is responsible for the water and sewer. It averages $35 pr/mo on my other units, figure $50.   

Management is in place with a quality company that has a realty arm that understands investor needs. Their cost is $75 or 10% or rent, whichever is higher. 

We all calculate Vacancy and Cap Ex differently so I will leave that to you.

It's a brick structure and I am working on getting pictures.

$7000 or best offer

PM me or give me a call with any questions.

Dave 

919-444-4863

@Andrew R. PenFed Credit Union

@Eric Saavedra Hi Eric - I wound up not needing to use this method and I'm glad I didn't. I just paid cash and the took out a HELOC. When you pay cash there is no seasoning requirement to do the HELOC. It also saved me A TON of money in closing costs. I refinanced with Penfed Credit Union immediately and had my money back in about 30 - 40 days. I bought another property immediately and repeated the process. I have offers out on 2 properties right now.

PenFed will cost a few hundred dollars in closing costs vs a few thousand. 80% LTV on NOO. They have a minimum loan amount of 10k and will let you do interest only payments. They also will do a desktop appraisal I'm many cases. If I would have done the loan the way I intended when I wrote this post I would not have been able to scale so quickly. The only downside with Penfed is they will limit the number of loans you can do with them 3 NOO plus your primary residence.

Feel free to PM me with any questions and happy investing!

@Matt B. I received mine in the mail a week or so ago. They should take effect at the start of 2019 but not positive. They can be disputed for the first few months of the year, after that you are stuck with them.

@Matt B. Watch your tax rates in the Cleveland burbs. They are sky high AND I just received a stupid high reassessment from the county for my rental property there. BE SURE to ask about adjustments to taxes when you look at any property.