All Forum Posts by: Gino Tomba

So I just signed the title documents today for a SFH in Kansas city for 70k. I was caught off guard by two things; Property taxes a lot higher than expected, It went from 950 all the way to 1370$. Due to the recent appraisal. I imagined they might go up a bit but that was higher than I expected. Then there was n HOA for 25$ that was slapped on there, I asked the notary if it was monthly or yearly but she didn't know. I called my agent ( I am in California, her in KC) but she was out of the office for the day (she had told me previously).

I ended up signing anyway as I am just praying it is a yearly amount since it was not disclosed ANYWHERE. It's only 25$ but that's supposed to be MY 25$. The deal is not as great as i'd hoped as my CoC is 9% with about 150$ monthly. Lesson learned here is do my due diligence on taxes more in determining what they will be. As far as the HOA my agent will have some explaining to do.

You have closed 1 more deal than I have so congratulations!! Little stuff like that happens, best thing is that will NEVER happen again to you. Live and learn, still cash-flowing, grats!

2 Votes

Originally posted by @Victor Vella:

Set up a time for a walk through, check the recorder site for an estimated payoff to make sure you have a shot at then having equity.

During the walk through ask the question.... you can either get the measly “x” dollars in rent or I can do a quick close, skip the realtor at x dollars. Let them know your fine either way.

But you need an answer cuz your constantly reviewing opportunities and only have so much money to commit.

IMO that’s what I would do if I were in your shoes

Just found their note lol. Owes around $82k now and valued around $183-$190k, bough it end of 2015 for $116k. Looks like alot of work was put into the house so trying to figure what someone would want off the top with that much room to give a fair offer.

I either want to play hardball or pull on the heart strings letting them help a first time investor get on his feet and knowing they helped start a career.

0 Votes

Hello All!

I found an off-market duplex for my first house hack and have a call coming up to talk further. I found it listed for rent and so far all I know is that they have been toying with the idea of selling.

Some of my perceived bargaining chips:

I am a mortgage Loan Officer so it will close quick, easy, and I can give him a killer deal for his next purchase if he is looking to buy again
I can save him money not using an agent (I have one, but I found this on my own so not sure where he may come in on this)

What other advantages am I not thinking of?

What do I ask, what do I say, how do I move about the conversation to close a killer deal?

I look forward to hearing your ideas. Thanks for the help!

0 Votes

Originally posted by @Victor Vella:

I did the same thing when I was getting my feet wet and doing a side hustle ( making an assumption since his profile makes reference to working for a lender)

I think it's smart to try free alternative sources besides MLS before going straight to paid sources.

Sometimes being lean and hungry forces creativity that creates big things.

If nothing else you try it doesn’t work after 60-90 days then you say what’s next.

Additionally I would suggest being open to property types and focus on a deal and a city vs a specific property type and a city and a deal.

Luckily my agent gave me full access to the MLS so I am not paying for it right now. I have been running the rental calc over and over again on different properties and I am not getting the return that every expert talks about.

My next game plan is looking for SFR that may have an in-law suite or full basement to even Air BNB

0 Votes

Cleveland, Ohio

Originally posted by @Victor Vella:

Hi Gino!

I do a lot in Lakewood, our team just put a giant 3 unit under contract in central Lakewood.

We do a mix of residential, rentals, flips, SF and multi families. Lakewood has great demand but limited supply and extreme buy side competition.

Duplexes and multi-families in Lakewood have skyrocketed in cost, there’s opportunity but you have to be patient.

That's awesome! I think a 3 unit is ideal for a newbie to actually cash flow day 1 over a duplex, but not as daunting as managing a 4 unit off the bat.

I am lucky to have time on my side to be patient, but I'm getting anxious wanting to get my first deal done so I am closer to the second deal!

I am just about toast finding a deal on the MLS, so I think my next plan is direct mail. I have also joined some Lakewood 'For Sale' Facebook groups in hopes that a little ole lady may post a steal without knowing how to post it anywhere else for others to see lol. Long shot, but probably equal to the MLS at this point.

Any advice on Direct Mail? I do not want to put a lot of money into it if I hear that investors have already blasted the neighborhood with flyers.

0 Votes

Cleveland, Ohio

Originally posted by @Federico Gutierrez:

There are areas in Cleveland in that could yield the same rents but not cost you as much. Lakewood has higher property taxes than Cleveland. A good realtor can offer up alternatives.

I am struggling finding those good pockets that are not a war zone.

0 Votes

Cleveland, Ohio

Originally posted by @Mitchell Litam:

@Gino Tomba Have you driven around birdtown? How about at night? I own a duplex west Lakewood close to river and it feels so inviting and safe.

My sister's friend lives in birdtown and I had to drop her dog off to him since she was going out of town. Like yourself I am a millennial that works 60 hour weeks. Anyways I didnt get there until night. It seemed like there was a lot of strange night activity and I didnt feel nearly as safe as the west side of Lakewood. I would splurge a little bit more to get in a nicer area of Lakewood. 175k is a good budget hopefully you can find something.

I know you are renting it out but I like to make sure I buy houses I feel comfortable in. That way hopefully my tenants I rent to feel the same I do. Safe

I agree with everything you said. I drove around on a Friday night, but it was raining so I didn't see much action. It is right across the street from a school so with my limited knowledge on what a renter may look for, that may help in getting what I want for it.

I don't see myself wanting to top out on my budget either unless I can get a higher return on rent.

0 Votes

Cleveland, Ohio

Hello All!

CLIFFNOTES: Looking for areas you see higher rental return than expected/appreciation, a property with little to no work needed to get rented, and rental price projections in the Birdtown/Cudell neighborhoods or any other areas that get brought up. Max purchase price, $175k.

I have been soaking up a lot around here and FINALLY ready to make an offer once I find the right duplex.

The best help has been my co-worker (currently buying his second duplex in the area) and this article, The Ultimate Guide to Grading Cleveland Neighborhoods. It is a MUST read to get a good foundation, but this is over two years old now. I imagine the map and area opinions looking different today and want to get input where you think it has changed.

I have done a lot of research and understand the broad concept of Northern and Western areas being the easiest and best to rent, but I am not looking to put an offer in over $175k and inventory seems limited right now.

My agent is showing me a few places today mostly in the Birdtown/Cudell area since I would rather get something a little cheaper that needs next to nothing work, compared to something in the same price range needing rehab. Sweat equity seems daunting being as I am a pen-pushing millennial with no handy skills as well as spending all too much time at work.

what are your thoughts? Should I stay away, do you have better areas to look at for my price range, any untapped pockets of multi-unit gold?

TIA!

P.S. Always happy to reciprocate with any lending advise needed.

0 Votes

Cleveland, Ohio

Originally posted by @Jeff Brower:

@Bill Goodland No problem doing an FHA loan without an agent.

@Mila Tokmakova You are correct that PMI stays with the life of the FHA loan. But if you are refinancing out of the FHA loan into a conventional loan then you wont have to pay the PMI anymore. It is a replacement of the first loan. Pre-2012 the PMI would automatically drop off at 20% equity with an FHA loan, but like you said, they changed it to remain for the life of the FHA loan which is unfortunate.

Hello all! Although great advice and almost 100% accurate, I want to clarify for future readers. FHA PMI is only on the life of the loan if you borrower more than 95% (refinance or purchase) of the value. So if you are putting down anything less than 5% to purchase, yes it is for the life of the loan. If you put down 5% or more, it only lasts for 11 years.

Remember, you can put down whatever % you want for Conventional or FHA over their minimum requirement, but the caveat to each program is how to get rid of PMI. Also, Fannie and Freddie offer 3% down loans now, instead of the previous 5%.

Hope that helps!

2 Votes

All Forum Posts by: Gino Tomba

Gino Tomba has started 14 posts and replied 39 times.

Post: Closing on first deal, it disappointed

Post: Found an off market deal, how do I close it?

Post: Found an off market deal, how do I close it?

Post: What area of Lakewood would you get your next duplex?

Post: What area of Lakewood would you get your next duplex?

Post: What area of Lakewood would you get your next duplex?

Post: What area of Lakewood would you get your next duplex?

Post: What area of Lakewood would you get your next duplex?

Post: My first Duplex- FHA House Hack Case Study with Tips