All Forum Posts by: Emanuel Ohunwu

@Jingwen Dunford How long have you been in the mobile home park business? I think read in one of your replies that you bought one in Georgia with owner financing?

@John Morgan I met with one of their reps in Ft.Worth. I'm so glad I didn't do business with them. They gave me bad vibes!

I'm a real estate investor in DFW. I met with a representative from new western in Ft.Worth last fall. Something just didn't feel right so I said not interested.

Bank of America has a program to help with downpayment and closing cost. Its called America's Home Grant program. I think they'll also do 3 percent down. Obviously it depends on your credit history to qualify.

@John Morgan I'm also an investor in DFW. You're right it's super competitive. Losts of people from California buying up property.

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $200,000
Cash invested: $5,300

Purchased a duplex from another investor in Ft.Worth, TX. The duplex already has tenants living in one section of the duplex. The tenants pay $950 a month. I pay myself 1k a month in rent to stay in the other side. I only have to pay $600 technically, because the tenants pay $950. I just choose to pay myself market rate to live in my side as a way to save for another home if that makes sense. My mortgage is $1,550 a month.

What made you interested in investing in this type of deal?

The location of the duplex! It's close to a major highway in Ft.Worth. Its also close to shopping, schools, hospitals and DFW airport.

How did you find this deal and how did you negotiate it?

The deal was found on the MLS. There was some deferred maintenance. All the home needed is foundation repair ($2000) and new flooring in one side of the duplex ($3000). I was able to negotiate 7k towards closing cost. Additionally,I got $950 rent from the seller and the $850 security deposit at closing. So my closing cost out of pocket was $5,300. Rent and security deposit are being saved.

How did you finance this deal?

I used an fha loan.

How did you add value to the deal?

New flooring, appliances, and landscaping on the other side of the duplex. The other duplex doesn't need any work at this time.

What was the outcome?

I live in the other side of the duplex. This is the side I'm renovating. I plan on renting it out next yr for 1200 a month. This is $200 above the current market rent. I hope to be able to get that much with the renovations I'm doing.

Lessons learned? Challenges?

It was a hassle dealing with the seller. The seller tried to break FHA guidelines by selling the home less than 3 months after purchasing. I knew he was selling after such a short hold time, but I didn't know it could cause problems with an FHA loan. The lender caught the problem during the title search. So I had to restart the process for an FHA loan. Another application and new appraisal was needed. I was able to get a credit from the lender for the 2nd appraisal.

Make sure you factor in property taxes if you're going to invest in Texas. Also if you decide to invest in south Texas factor in insurance, because we get hurricane's out here.

On 10/31 I purchased my first duplex using an FHA loan. I started the home buying process in August of this year. I had pre approval from my lender, high credit score and down payment ready. The seller bought the home in July and was reselling weeks after purchasing. I knew this before I bought the property and didn't think much of it. I just figured they had second thoughts about the purchase or found something else they wanted to buy. So I get the home under contract in early August did my due diligence only to find out from the lender that the seller was breaking FHA guidelines by selling the home so soon after purchase. Seller has to hold the home for up to 3 months before selling. Long story short everything had to be repeated. A whole new loan application and appraisal. The 1st appraisal came in above selling price. The 2nd appraisal came in 5k under selling price😒. Luckily, I had negotiated 7000 towards closing so we ended up splitting the difference and my portion came out of the 7k. I went through so much adversity in getting the propert

y. Closing date was pushed back several times. I had to live in a hotel for 5 days while I waited to here if I was approved for closing by the underwriter and getting repairs done so I could move in. I did inherit some tenants that are only paying 50 dollars below market value for their side of the duplex. So in closing never give up! Just keep pushing forward.

@Maurice Blackledge

I used to live in Indiana and Illinois. I now live in Texas. I've been playing with the idea of buying rental properties in the midwest. Some of the smaller towns seem to have lower priced homes like the home you bought in Kokomo,IN. Did you physically look at the home or did you have your realtor do a video walkthrough of the house?

Have you thought about using an FHA loan? Interest rate should be better and FHA loans only require 3.5% down. One of the caveats is that you have to occupy the home. Works well if your buying a duplex.