All Forum Posts by: David Hayes

Welcome to BP @Bobby Jones! Lots of great people on here and resources.  Make sure to check out the podcast if you haven't already.  Cincinnati/Northern KY is a great place to be! 

@Tim G. thanks for the input, you are right Wyoming does have a mix.  It's pretty amazing the contrast when you go across the railroad tracks :) 

@Theo Hicks that Norwood property sounds pretty good, I think I do agree that $300k is too high.  It will probably maintain the value, but cash flow will not be good, probably not the best investment. 

@Ryan Greenwald - welcome to BP and to Ohio/Cincinnati! What brought you to Cincy? I enjoy the city and grew up in Ohio, midwest is great place to live and invest! 

@Theo Hicks it's an off-market property in Wyoming

@Bryan C. the only thought for potentially paying more for the property is if I could get 0% interest financing on a significant portion of the cost, that is like equivalent to purchasing it at a lower price with financing. 

I have what I consider an interesting scenario and I am curious to get some coaching/thoughts/feedback from fellow BP members:

I have a seller who wants to get out of her property (4 family in Cincinnati, Ohio), but ultimately wants more than it’s worth (in my opinion), but she has great equity so I offered her full price if she was willing to seller finance the remaining portion at 0% for up to 3 years so that I could easily refinance and get her paid off later. She agreed to this, but was concerned about transferring the property subject to existing mortgage because she went and asked the bank if she could do this – and they of course said no. I told her of course they would say no because it triggers the due on sale clause – but they don’t have to call the mortgage and my plan was to of course tell them I was taking ownership of the property and have full plans in place to continue to make it a performing asset and then would re-finance later to get them fully paid.

Here’s a couple more details of the property:

• Purchase price = $300,000 (I think it would appraise around $280k, although comps are hard in the area because not many multifamily)
• Downpayment from me = $10,000
• Remaining mortgage = $150,000 (monthly payments of $1360, $800+/month principle)
• Seller finance at 0% = $140,000 (balloon payment after 3yrs)
• Monthly rent = $2800/month ($700/unit) Easy to rent at that price, opportunity to increase to $750-$800, maybe even $850

Now – you might jump on this and say that maybe this isn’t a good rental at all based on these numbers since it’s about half of the 2% rule. I would agree in general, which is why I was just trying to figure out a creative financing/acquisition solution. The property is in what I would define as an A neighborhood, in general it should have very low vacancy and potential for continued improved rents, maybe even appreciation (although I wouldn’t count on it).

Any coaching for further educating the seller on subject-to financing? I am definitely not trying to convince her to sell it to me, I’ve been very open about the risks and exact procedure that would happen.

Any other creative ideas or thoughts on this?

welcome to BP @Kyle Warmouth! lots of great resources on here - check out the podcasts and education section if you have not done so already!  Cincinnati is a great place to live and invest! 

Welcome to BP and back to Cincinnati @Daniel Fague! I moved back to Cincinnati myself after being away in St. Louis for 5yrs. Great place to live and invest.  As I'm sure you're already finding out, lots of great people and resources here to get you started on your journey.  Best of luck!

Welcome to the BP community @Rebecca Bryant ! BP is a great resource, lots of good people on here and the podcasts are definitely a great place to start.  Make sure to check out all the education tools here too.  Cincinnati is a great place to invest as well, my first property was purchasing a foreclosure in Cincinnati to live in, fixing up then renting it out.  Has been a great investment for me and definitely a great way to get started. 

Welcome to BP @Ian Hoyt! I also migrated from the Columbus area to Cincinnati, but I'm still a Buckeye and love Columbus :)  Cincinnati is great too, do you have any areas that you're looking at in particular?  House hacking in particular is a great way to get started, many different creative ways to get the job done.