All Forum Posts by: Everest Jordan

@Chris Coleman

Which companies did you finally go with?

I am here in Montgomery County, MD

@Michael Tyler

Agree with what you have to say. An average home buyer will never win a bidding war where investor cash is involved.

So I was given these numbers by my lender that set me up with my pre-approval letter:

Purchase Price - 350k

Down payment - 5% = $17.5k

Closing cost = $14k

Location of unit - Montgomery County, MD (zip 20874)

Is $14k closing cost in this location normal? It seems a bit too excessive. 

@Brandon Turner in all his webcasts usually only puts $3k towards this expense and I has expecting mine to come in the same ball park. Should I look for another lender, or is this the norm? I was totally not expecting to be paying so much in closing for a unit at this price point.

My credit score is very good, not sure if that is a factor in the calculations.

Would appreciate some words of wisdom and direction from seasoned REIs.

View report

*This link comes directly from our calculators, based on information input by the member who posted.

This will be my first rental unit.

This is a REO and crazily this is a move-in ready 2 bd/2ba condo. The condo fees are high $350 but it should offset most of the capex cost.
Rentals in this area go for around 1600 - 1800. 

Based on my numbers with 20% down conventional loan it will cash flow around 160 - 175 per month. 

Because this is not a BRRR approach it does not make sense to use private lender or does it? 

Should I make an attempt?

 Are these B units or more B- / C ? All over Baltimore or just certain pockets (new Johns Hopkins) etc? 

 Are you looking for appreciation in these markets? I am assuming these are B+ units?

The much talked about 1% rule does not make sense in such larger NE metros (NY/NJ/ DMV). Even foreclosures don't pass this test, forget about units listed on Zillow, Realtor and other sites. Also, I have heard many gurus on BP talk about starting safer and not go out of town/state for your first few units unit you understand the game. BRRR is great if you have a background this field but very difficult to execute if not.

So as a first time REI in NY/NJ or DMV metro how did you start? Did you go for war zones and slowly build your way up or did you just go for appreciation? Did you focus on Baltimore and Philly/Trenton areas? Does it even make sense to buy-and-hold or did you just start flipping? Did you buy 2010/2011 when the market was 30% cheaper compared to what it is now?

I would love to hear your story.

 Thank you. I will try these numbers for my upcoming deals.

BSc in computer science, math minor. Don't believe my core education helped me in my decision to become and think like a REI.

Maybe it was taking all those electives and fluff subjects that made me realize there is more to learning and life that just what we do in our 9-5, and to observe and pay attention to what is going on around us.

These are trends (some are already occurring, others may/may not happen) that we see and hear in the news more and more nowadays. Has anyone looked into these factors and see how it may affecting the housing/rental markets at a macro level? And then again it may not matter as real estate is as they say 'local.'

Already occurring:

1. 10,000 people in the US are turning 65 each and every day. This is why the Medicare Advantage and Medical Supplement businesses are booming big time. With this influx of older population we also see 55+ housing and nursing businesses growing. So, all of these people will eventually be moving out of their older homes that will need major renovation. Most likely than not, these homes will be sold in doves.  

2. Low and Negative interest rates are a reality in the US and around the world. We most likely will see this trend continue as the world economy intertwines deeper. This means cheaper credit to purchase homes and maybe lower intensive to rent.

3. QE has helped the equities market after 2008 and created record levels for NASDAQ, S&P and DOW JONES. How long will this trend continue and what happens when we see this artificial uptick reverse trend? How many salaries employees who bought their homes with credit survive another round of massive prolonged layoffs. 

Most likely will/ will not occur:

4. Millennial will manage to pay of their student debt and outgrow MFH and apartment complexes. Will they want to settle down and start a family by purchasing cheaper homes?

5. In the next economic downturn how many REI will be underwater and never want anything to do with this industry? Heard a podcast recently where the speaker said 80% of members here on BP acquired at least 1 investment unit in the last 12 months.