All Forum Posts by: David Haynes

@Matsa Sundara What an inspiring story! Thanks for sharing! I’m investing in the Philly area as well. I love hearing these success stories. And as always, the story’s not over. Keep it going strong!

Hand out business cards to contractors. Most of them will know who is investing in the area. They're also motivated to spread your name so that they can get more work.

@Robert Stamper That is true. Back in 2009, Fannie Mae raised its limit from 4 to 10 as a result of the Great Recession in order to encourage investment. They do have higher standards for underwriting anything above 4. From what I understand, you need the following:

-25% down payment

-6 months of PITI reserves for each property

-Stellar mortgage payment history

-Proof of financial soundness (i.e. no bankruptcies, solid tax records, P&L statements)

-Excellent credit rating

Here's the info straight from Fannie Mae's site

@Alex Critcher The Kaplan online course was perfect. The flow was clear and the material was in depth. If you use them, I recommend buying the exam prep course. It gives you a thorough review of all the national and state laws and regulations. Pay close attention to the state part as you prepare. This is usually the more difficult of the two.

Once you pass the Kaplan exams, of course, you'll need to sign up for the state and national exam through PSI. PSI is a third-party test proctor that the state of PA uses.

@Od Ntuk I know for a fact that Philly AirBnB is doing well. One of my partners just outside of Philly is fully booked and making decent cashflow. He is getting a lot of long-term stays.

Real estate investment is a long-term approach to financial freedom. The first step would be to build up enough cash for a sizable downpayment on your first rental property. You would also want to choose your strategy. BiggerPockets can teach you a lot about the different strategies that you can take. It sounds like you would like the BRRRR strategy. It's a risky but rewarding approach involving finding a distressed property, renovating, renting out, and refinancing at a more acceptable interest rate once the bank appraises your property at an acceptable value. Scaling this approach takes a lot of thought and planning.

I'm in Philadelphia, investing in real estate myself. If I can be of any help, just let me know. I and my partners are pretty dang good at finding the best properties for this strategy.

But yes, the first step is to build up that cash. Cash is king!