All Forum Posts by: Drake Cole

Spending on what your payment is really determines this deal at least for me. I have only been investing for 7 months, but the two things that I found was most important for my deal was to 1. Have enough capital to weather expenses and 2. Run your numbers for the worst possible senecio. I think you could get around $1000 a month in cashflow if worsts comes to worst with this particular deal with just a rough estimate. $125 a door is pretty good for my area but Im not sure about yours. Also I have found my best luck with finding renters from Facebook marketplace. And renting your units as fast as possible to minimize your vacancy expense is crucial. 

I am purchasing a commercial 3-plex in a smaller, rural town in Missouri. The rent was under half of what market is currently at purchase. After raising the rent, two of the current tenants decided to leave. Currently it is marketed at $1500 a unit and Market is at $1800 a unit. It is in a prime location right off of a main road. I have signs up, a Facebook market place post (which has gave me the best results by far for my residential units) and posts on Zillow, and Realtor.com. If there are any investors experienced in commercial units who know more, I am open to all insights and opinions. Thank you.

House hacking was my original plan. But after talking with the bank, I would not meet the debt to income ratio. So in house loans would give me less restrictions for me to be a little more creative. With using my home or annuity's as collateral, I can purchase the property with no money down and all four of the units would be able to be rented. With the loan on the home however, I would take out a HELOC and purchase the property outright, then take a loan out and on the HELOC to pay off it off. This would give me a lower interest rate and give me a longer term.

Hello, BP! I graduated High school only a couple of months ago. I have been wanting to become a real estate investor for the last four years (Since I was 14!). Which is around the time I discovered BiggerPockets. Since then I have read over 20 books, listened to over 200 podcast episodes and talked to a couple of local investors. I recently found a 4-plex for 359,000$ which I have been looking to buy. I have talked to the owner and told me he'd sell it for 335,000. 3 of the 4 units are rented currently. After all units are rented, it will bring in 3600 a month gross income. I estimate that the expenses should be around 900 a month (Not including the mortgage). I went to a local bank today and my only option is an in-house loan. I have a paid off house which I currently live in that would probably be worth around 400,000$ to 500,000$. I also have multiple annuities that would cover 100% of the purchase price. My father, who was also a real estate investor, left me this after his passing from cancer in 2017. This is my first post and I figured I would ask the BP community for their thoughts on which would be better. Your feedback would be great. Thank you BP.