All Forum Posts by: Ethan Kohler

 Thanks Vinnny. I have found lender fees alone to be quite substantial, even on a small 100-120k loan. I was not sure if that's typical, or if there are sometimes hidden upfront costs that are baked in so the the rate being offered is lower. As if I am buying the rate down without actually opting for that.  

With the expectation of 2% (+/-1) from the reliable BP calculator that I have used for a while, anything above 4% of purchase price seems like there are costs being tacked on that have not been before. 

Can anyone offer further insight as to what we should expect for closing cost, with respect to a conventional loan for simplicity? The BP calculator expresses 1-2%, but I have heard more like 3-4% to be on the realistic / safe side. However, in my short experience, it seems like closing costs are closer to 6-7% of purchase price, which may or may not include property taxes paid separate. 

Main concern in getting down to the details, is that it can substantially affect the CoC return. I also don't know if its unusual to have that much out of pocket, plus whatever my down payment and potential rehab is.

Appreciate any conversation. 

 Thanks Scott. Perhaps many historic homes are a little different. I think some in nicer downtown areas have older, million dollar homes. The circa 1900 homes I have found have mostly been old farm homes where the path of migration has developed around it. Perhaps the renovations over time can be drastically different.

 Patricia, 

I appreciate the response. That is my gut feeling. I see many 1940s builds which may not be as bad, and so I may be on the fence with those.

Looking for any insight into purchasing 100 year old houses as rentals. I imagine it would not be that much of an issue if everything has been updated/renovated, but is that not so simple in identifying the underlying condition and materials? Mainly electrical and plumbing. 

I'm wondering if, in general, it may be wise to steer clear of these properties for greater inherent risk. Unless maybe its in a historic downtown district with a lot of potential (which is not the case for what I'm finding). 

Appreciate any comments. 

Kevin,

I live in metro Detroit but have spent a lot of time traveling to Toledo hospitals for work over the past several years. I have really felt it was a neglected area and lacked a real economy, but I am starting to think its changing. Thus I'm curious and started looking at investing in certain areas of Toledo now as well. 

There seems to be some hipster type growth, for lack of a better term, which makes for younger crowds and great restaurants. I have also had a recent conversation with a doctor there in which he felt that things flipped recently for their economy.  

 Great job. Clearly needed extensive work and Rehab looks great, but man I was not anticipating $150k for a job like that. Hopefully just because it was a shell like you said in which on the other hand you only paid $15k for it. 

 Hey @Travis Biziorek, out of curiosity, what made you target Detroit for STR? I see you're out of of CA. Are you all over in which Detroit is just one market for you?

I wouldn't think there would be much demand for STR in Detroit, unless you're talking outskirts by a lake? But of course I'm wrong a lot and there are other situations.

 Appreciate you sharing the experience/insight. I work in the hospital setting and have been trying to get a gauge on travel nurses in Detroit area, tough to tell. I would think it too costly and inefficient to be sustainable for hospitals, but as mentioned, sounds like every market is different. 

Although one can have up to 10 conventional mortgages, how does each one affect the next in terms of DTI? For instance, if I get a mortgage on an investment property (traditional or BRRR to refi), will I likely qualify for less than I currently would on my next deal or even my primary residence purchase? Would a few investment property loans make it more difficult to get approved for my next home loan, or does it not negatively affect my ability to get another loan if its a cash-flowing asset? Appreciate any thoughts.