All Forum Posts by: Josh Dillingham

I agree with @Caleb Heimsoth. I have been on the buyer end of things for an FHA loan and it almost fell apart because of repairs that had to be made to meet FHA standards which wouldn't have been an issue if it was conventional loan. If you have to offers that are the same I would definitely go conventional.

 Are you saying the house didn't appraise for more than your purchase price? Did you put any renovations into it? Your repair cost is listed at zero. If you are asking when will this house appreciate and allow you to get a higher appraisal that is an impossible question to answer.

It sounds like if you do get an offer accepted you will have Zero cash reserves. That is risky. Do you have other sources of savings you can pull from in case of an emergency? 401k, IRA, stocks etc?

I would say don't get ahead of yourself. If you want to wholesale then find some deals and find a couple investors that will buy them from you. If your deals are good finding investors will be easy. Worry about the LLC, website etc. If you are still interested and have actually made some money 6 months from now.

1.) You will get lease agreements

2.) Contact local banks. I doubt you will find anything with less than a 20% down payment. 25-30% is more likely

3.) You don't need an LLC to make an offer.

@Kevin Means What you described was the same position I was in 2 1/2 years ago.  I decided I wanted to invest in real estate, learned everything I could, worked up the courage to view a triplex that was 2/3 occupied, felt like I was way in over my head even though all the numbers seemed to work...Then...I made an offer.  2 1/2 year later The cash-flow and the fact that my tenants pay all my living expenses has allowed my to buy a single family rental which I was able to fix up, force appreciation and do a cash-out refi, which gave me the down payment I needed for a 5 unit apartment building which I am closing on next month. 

Trust me when I say that you will NEVER feel like you know what you are doing on that first deal. but at some point you have to jump.  run the numbers, then rerun the numbers, if everything tells you it works, make the offer, and don't look back.

@John Miller no one will be able to give you accurate advice without knowing where you are and having knowledge of that market. if you were in the U.S. I would say buy a small multi-family property 2-4 units. Live in one unit then rent the other units out. in the U.S. you could do this with a FHA loan with a 3.5% down payment because the building would be owner occupied and you would only have to live in the property for 1 year, then you could move out if you wanted. But I don't know if your country has anything similar.

@Joshua D. based on those numbers it looks like it can work. one concern: even with saving 10% for cap ex that will only be $1400 per year, which could get eaten up quickly if you need a new roof, plumbing, electric, etc.  just because the house is 1/10th the cost doesn't mean the repairs will be 1/10th as expensive.  It's crazy that you are getting $1150 in rents for a $7,000 all in property but good for you.  Personally I wouldn't do this deal because $340 of monthly cash flow isn't enough for me to have to worry about owning two more units.  I like to get at least $200 per door.  But at the price you are paying you don't have much to loose and if all goes well you'll have an excellent return on your investment.

I haven't invested in Cincy yet but it is a market I will definitely look into when I am ready to expand to larger multi-families in the next few years. Right now I am still getting my feet wet with small multi-families locally here in Southern Vermont (closing on a 5 unit building next month to bring my total to 9 units), but when I am ready to move onto something bigger I will have to look outside my local area because there aren't many large apartment buildings in this area. With all the news swirling about MLS in the last 6 months I have been keeping and eye on Loop Net for the two neighborhoods they had been talking about for their new stadium, Oakley and West End. They have settled on the West End now and from what I hear Don Graber will be in town on Tuesday for a "Major Announcement."

what do you mean by "motivated seller leads"  do you mean you have address you got from a list that you are going to mail or have these sellers actually responded to your mailing? You should target your mailings so they aren't going to neighborhoods you aren't interested in.  Google maps street view is a nice quick option to get a general idea of the street the property is on.