All Forum Posts by: Cassie Wright, Jr.

I'm aiming to purchase my first small multi-family in Ohio; probably in the $50k-$80k price range.

Is it better to pay "cash" and then refi, or seek a mortgage up front?

I say "cash" in quotes because it will come from my HELOC (primary residence). I'd like to have my money available (or 75% of it, at least) ASAP after my purchase.

I'm sure the answer to this question will include "it depends" ... I welcome any advice and clarifying questions!

Thanks!

-Cass

Hi @Scott M., thank you for your input. As I mentioned in my original post, I'm looking for the threshold at which a landlord can be totally hands-off (therefore, hiring a local property manager).

Thanks @Rodney T. I've gone through about 20 podcasts as well. And I agree 100%, nobody is going to care about the property more than myself. But I've also heard about being "totally hands off", and there's actually a book about it by Brian Burke. I haven't cracked it open yet, but maybe it has to do with REIT's.

I'm halfway through David Greene's book, Long-Distance Real Estate Investing, so perhaps the answer lies in the pages I have left. But I'd like to know some opinions from BP investors as well. What is your threshold for needing to visit an out-of-state property, vs. being totally hands-off and never visiting the property? What factors come into play when deciding whether or not an onsite visit is needed?

Thanks for your insights.

-Cass

@Caleb Brown what does the acronym PP stand for? I found ARV as "after repair value".

@Justin Lemaster thank you sir, appreciate your thoughts. In other words, "low hanging fruit". Makes sense.

@Joseph Bramante thanks for your input. To your point about multi-family vs Plex, perhaps you can share how that difference comes into play. I'm guessing it's financing a residential vs commercial property (which, I've heard, commercial is 5 or more units).

In this BP thread there are differing perspectives on whether a 4-unit is a multi-family. Let me know your thoughts.

@Brandon Sturgill thanks for your input; "phased improvements" is not even something I considered, and it's a great point. And thanks for sharing your experience with your own properties.

@Steven Foster Wilson I much appreciate you sharing your experience. I could use the same template and just replace the numbers.

Thank you sir!

@Darius Ogloza thanks for your input. There are numerous cases where rent is below market (even here in CA). For example, a landlord may elect to not raise the rent on a tenant because that tenant is a model tenant, and instead the landlord chooses the 'peace of mind' of that tenant vs possibly displacing that tenant and shooting for the higher ROI (I've seen this in my own family's dealings). Or maybe the property was passed down through generational wealth and the heirs didn't bother to raise the rent/maintain the property. I'm not sure if I'm dealing with either of these examples in my current transaction, but they DO exist. And that's where opportunity comes in for us investors when the landlord sells.

I've never dealt with leases so I was unaware about the simple solution that you and others presented; now I'm a little better informed. Thanks.