All Forum Posts by: Erik Sherburne

Just a quick note to everyone on this thread.  There is a lot of amazing of advice in these series of posts.  Info that could fill a book or two.  Thanks to all who contributed.  I was struggling with some similar questions myself.

Ironically I was just going to post a question wondering the same things thanks everyone for your great answers.     I have an additional question for those with hard money lender experience:  how do the terms typically flush out?  I get that it will be at a higher interest rate (~10+%) but is there a balloon payment due at 6 months?  What if I pay it off sooner?  Pay the interest anyway?   Pay it off later and the interest continues?  I know that all of these questions obviously depend on what ever is set up with the person(s) lending the money so I just asking what is "typical".   Thanks in advance!!

Thanks everyone for your support!!

I found it on the MLS through my realtor. Listed at $84,900, after being on the market for 4 days I got an offer of $81,600 accepted (with $1600 toward closing costs). I'll put in ~$2000 to make it worth ~$90,000. Not a huge swing or something I will refinance right away but a good first step for me. Rent should be around $1195 (I found two properties on Craiglist the week prior) which is ~19% COC after taxes, HOA, assumed maintenance, etc.

Thanks for your interest! 

....and loving it!!!  We kept our first home as a rental and bought another house for our expanding family.   After about 9 months of learning, analysis and inspiration from the forums and podcasts (many of them I've listened to multiple times) we bought another property!   Technically this if our first purchase as an investment property.  I'm learning a lot but I'm excited.  

Quick summary: 

My criteria: I want to double my investment in five years (after tax cash + equity gain assuming no appreciation).   Ideally a low maintenance property as at this point in my life (two wonderful young girls, a day job, and an active composer/arranger of music) I don't have a lot of time but I do set aside focused time to build my real estate portfolio.   My plan use the cash flow and use it to buy other properties to supplement my current income and scale up to multi-families to create sustainable wealth for my amazing family.

We bought a condo (I know, I know, there are risks...).  Got in undervalued and applying the BRRR strategy adding value, then renting it.   19% COC return and it is very close to my home (as is our "kept" rental) which is also part of the plan.

Thank you to the Bigger Pockets community.  What I've heard and read has been incredibly valuable.

I read the forum posts. I've listened to all the podcasts and I get all of the cons for having a condo as an investment property. For me, real estate investing is a way to diversify income streams, increase net worth, but at this point in my life (with a wife and two young kids, a job, etc.) it isn't my number one priority. Recognizing that I see where condos have a lot of advantages. I'm looking for properties where I can double my investment within 5 years assuming no appreciation (cash flow + principal paid down). I've found that property where those numbers make sense conservatively, and even if I had to drop rent below market averages I would still get a ROI greater than if the money was in the stock market.

Part of my strategy is to have properties that set themselves apart from the rental market to mitigate the risk of vacancy when there are a lot of properties available to renters.  How do I  set a condo apart from the other same set up condos/apartments in the area?  In this case that area is Minneapolis/St. Paul

Full disclosure this next purchase would be my first specifc investment property purchase however we kept our previous home as a rental so I do have some experience as a property manager.

Thanks in advance for your time!

-Erik 

I'm new to this and looking to get an investment property.   I want it to be low maintenance which is why I'm considering a condo/townhome.   Where I struggle is determining the rent.   How should I compare/evaluate an existing apt complex (not my own) vs a condo I'm trying to rent?  Is a condo more "desirable" for the public vs renting an apt?   If a nearby apt complex has rent at $1200 with slightly better amenities but less sq ft (as an example) can I ask for $1150?  $1250?  $1200?

Thanks in advance!  I'm new to the forum but already am learning a ton!!