All Forum Posts by: Eric Jelen

I know the "The Millionaire Real Estate Investor" is one of the most popular books on REI. I just finished the book last week and it seemed to have different ideology than the majority of investors on the forum and other books I have read. The authors put a lot of emphasis on keeping track of your net worth. This seems to counter to the idea that cash flow is king. There were many stories of millionaire real estate investors at the end of the book who prefer to have paid off properties rather than accumulating as many properties as possible. What is your opinion on net worth?

Thanks for everyone's fast replies.  It's reassuring hearing from people that are actually managing properties.  It's hard to know exactly what to expect before managing any properties, but It's something I really want to do and didn't want to postpone it until after school.

I want to start investing by buying a residential multi-family and living in one of the units.  I also would like to take advantage of my company's tuition reimbursement program and get my masters in engineering management. I know this can vary greatly, but I was curious how many hours it takes a month or week to manage 1 unit? Do you think it is doable to work a full time job, go to school part time, and manage a property? I don't know how passive managing a property really is.

I got an email today from my lender saying I would probably need a commercial loan.  I'm going to ask around and see if I get the same answer.  Thanks.

I'm just starting out and have been searching for residential multi-family properties.  I'm planning on living in one of the units and renting out the others.  I have come across some properties that have two homes on a single lot.  One in particular has to two 4bdr houses that are on a single lot (listing doesn't say how many baths).  My agent explained that I should check with my lender to see if I could even get a loan for this kind of property before we schedule a showing because there won't be many comps.  My lender got back to me and told me that I wouldn't be able to get a loan for this kind of property.  I was curious if anyone had experience with these kinds of properties?  I have a hard time believing they can't figure out how to appraise the property?

Originally posted by @Nathan Astrup:

I'm a realtor working out of central and west side. What questions do you have in particular? I would suggest using a conventional loan. Bring 1.5% more down and you drop the mortgage insurance (PMI) and that rate will stick with the property even after you move out.

I thought I would have to put down 20% to not have to pay PMI? If I do buy a home using an FHA loan, I didn't think the rate would change right when I move out.

I am new to REI and I'm looking to buy my first house. My plan was to buy a residential multifamily home using an FHA loan and living in one of the units. As someone just starting out, how should I search for realtors to give me some guidance? I am relatively new to the Ohio area. Are attending REIA meetings the only way or are there sites that list and review realtors in certain areas. If someone suggests a realtor, how do I know I can trust them? Are there certain questions I should ask for screening or just go with my gut feeling that they have my best interests in mind?

Thanks for the warm welcome. I thought I would get hit with PMI for any down payment under 20%? Is it smarter to put more down to shorten the time I would have to pay PMI? My ideology with putting less down would be a greater ROI and more money in case any unexpected expenses arise.

My goal is to find a multifamily home where the rent would cover PMI, insurance, property taxes, and the mortgage. I would be responsible for the maintenance and if I had a vacancy I would be able to cover everything with my job.

I have a lot of research to do on different markets, maintenance costs, land lord responsibilities. There seems to be a few areas around Cleveland which have multifamily homes and prices seem low. Since I am new to the area, I am hoping to learn more about different markets at my local REIA.

Hi, my name is Eric.  I graduated from school about two years ago and I'm currently an engineer for a glass manufacturing company in Cleveland, Ohio.  

Since graduation, my interest in personal finance and investing has grown. I am debt free, created a safety fund, and have been contributing to my company's 401K and my own Roth IRA. My next goal is to start investing in real estate.

I have been listening to the biggerpockets podcast to and from work, and reading as many real estate books as I can get my hands on. I plan to start going to my local REIA.

After my initial research, residential multifamily homes seems like a good place to start investing. I am leaning toward using an FHA loan to fund the property and live in one of the units.

I have a lot more research to do about choosing a property, being a landlord, and building a team that I can rely on.