All Forum Posts by: Dave Poeppelmeier

That's a good idea for the House Hack, but I can tell you FHA offers are very difficult to get accepted right now, at least in Toledo. The DSCR loan is a great tool because it's looking at the income potential of the property, not just your personal finances. Now, you're going to pay for that in much higher rates that you'll get in FHA or even Conventional loans, but if you're willing to bite the bullet on that to get started, then it's a great tool to use. Best of luck to you!

This is tricky. We purchased a house with international students once, and they were trying to change people living in the house all the time. Eventually they didn't like me enforcing the lease, and they all just moved out. I also had another international student who was really nice, paid rent on time, but he texted me last week saying he had to go back to his home country in 2 weeks even though he signed a lease for next year. But, you can't discriminate against International Students and violate Fair Housing Laws. 

I agree with the personal meeting, it's the best thing you can do to vet them. Otherwise, that would be a good questions for a Real Estate Attorney in your area. 

 Hey Nick, Toledo is a good market to get started out in since our purchase prices in general are a lot lower than most areas of the US. $40k can get you started with conventional financing on a $80-100k SF house in a C class neighborhood and give you money for any rehab that needs done as well. One of the biggest things new investors don't account for is having reserves after you purchase and renovate (if you have to) a property. I may or may not have found this out the hard way. Just know that until you get up to 6-7 properties, the house will not likely "stand on their own". You'll likely be writing a personal check here and there to replace a roof, a furnace that suddenly dies, a tenant does something really stupid, etc. 

With that being said, as Snoop Dogg's dad sagely advised, "Snoop Doggy Dog, you need a jobby job!" You're not going to get approved for any kind of loan without employment, and they typically want 2 months of pay stubs. I also know what it's like to work a job you hate and just want to get into Real Estate, but Real Estate is a Marathon, not a sprint. It's great that you want to learn about investing and you're willing to take the time to do that, but banks don't care. So, I would suggest get another job and just keep listening to books, podcasts, etc. Let me know if you have any other questions. 

@Chris Wharton is my go-to, he's in Columbus but can lend all over Ohio. I deal with sub-100k properties all the time and his team has been fantastic. 

@Kevin Cullen great to hear that you want to get your Son set up like this. You're absolutely on the right track with the house hacking idea, I wish that idea was mainstream when I was younger! Here in Toledo, the inventory is tight right now, but if you're willing to put in the sweat equity, you can still find something that will work for you guys. I'm an Investor as well, let me know if you have any questions. 

 We all know the enigma of @Michael P. here in Toledo. Anyway, yes I would be happy to help if you want to PM me the address. Toledo is a very neighborhood-centric town and values can change quickly when you cross a street or other natural land barrier. 

You need to get local financing. I'm sure $60k is a parking spot in Santa Cruz, but it's Tuesday here in Toledo. Regardless of where you invest in Ohio or any other market, the local lenders will be accustomed to these lower purchase prices because, well, that's just the way it is here. Local financing also lessens the "California Buyer" effect, where listing agent for owner occupied homes will tell their client to not trust your offer, because it comes with an unknown bank in CA. Unfortunately, stereotypes exist for a reason, and too many times big money from CA/NY/etc comes into our market, makes a big offer, and then tries to get the price down with the inspection. Or, if they're using an unknown Private Equity firm, the financing changes and they pull the plug on the entire deal. 

If you are working with a Realtor/PM, they will have lenders they recommend and have worked with before to help you out. Regarding cash/hard money, yes that's doable, but then you're paying closing costs twice, so make sure the numbers work of course. But, cash is always king. Don't expect a perfect BRRRR in this lending market, but if you can likely get some money back out, especially if you're buying the $60k house, putting $15k into it, and the ARV is now $75-80k. Best of luck to you!

In Toledo, OH, you can regularly find C class neighborhoods with SFH that hit 1.2-1.4% with a little bit of rehab and 1% turnkey, and MF over 1%. Prices are very affordable, but I never expect appreciation to outpace inflation, so it truly is a Cash Flow town.

I simply have a website and use Zillow. People reach out and ask if they could just stay for a semester instead of the whole year. 

I would say if you wanted to have one or two houses in your portfolio available for MTR in a Student Housing Portfolio, that could possibly work. But, I wouldn't have that be your only focus in a College market. I get 1 or 2 requests every year for housing for only a semester (fall or spring), but not enough to seriously consider it.