All Forum Posts by: Greg Mckeever

@Harjeet Bhatti Okay thank you! I was wondering that. Know of any quick and reputable personal loans, or hard money lenders? 

I am considering taking a personal loan (20% interest @ 5 years) for a nice house that is going up for auction next week. This is a cash only deal, with lots of potential. My plan is to BRRRR. I'd like to find a hard money lender, but instead have opted for a personal loan until I can refinance out of the loan and into a comfortable 15 year mortgage, or even better do a cash out refinance if possible. Anyone have any similar experience with this, and want to share your stories, tips or advice? Or possibly point me in the direction of hard money lenders?

Thanks, 

Greg

Hello fellow investors, 

First time landlord here. My current tenants which were inherited when I bought the property are moving next month..

So now the real challenge of being a first time landlord is approaching, and my biggest concerns with screening are:

Evictions and Criminal Background - How do you check for this? The local courthouse? Is there a free way, or a reputable online screening service for this? What do most landlords do? I absolutely won't rent to anyone with evictions, fraudulent, or violent criminal backgrounds. 

Credit Report - This to me isn't quite as important as above, and good landlord and employment references, but would still like to know how you check and if you check. I would say a credit score of least 600 to qualify? 

Also, 

Could anyone recommend a good Tenant Application template for Ohio? Anything I should specifically have on the application?

Thanks,

Greg

Jeff, 

Congrats on your new house hacking adventure. Your situation sounds nearly identical to mine, including buying a duplex from owner of 40 years, her husband passed one week prior to closing, as well as myself living in one side while renting the other, inheriting tenants, etc. My current inherited tenants are below market value as well, and are moving in three weeks. We plan on renovating their side, and raising rent to fair market value. I have the same strategy to refinance out of FHA and into conventional once I have 20% equity to get rid of the PMI.

Thanks Aaron. The idea was to live cheaply, or close to free, while I save for other investment properties, then this one be a cash flow after I move out. What are you're suggestions to make it a better cash flow? Refinance, or rasie rents? Personally, I think their rent is a bit cheap at $500. Could easily be $550-$600. 

I purchased my first Duplex property about three months ago for $75k, using FHA 3.5% percent down.

The original plan was for the tenant's side to pay 100% of the mortgage / taxes / insurance / PMI, while I cover trash and water for both sides.

Upon closing and finalizing the loan, I realized the mortgage / taxes / insurance / PMI totaled out to $640 a month, which isn't bad in my opinion, but a little more than the $550 I was hoping for. The tenants I inherited are long term renters at $500 a month. I decided to keep rent the same since they take good care of the place, pay on time, and are long term.

My total payment is around $723 - MORTGAGE ($640) +TRASH ($33) + WATER ($50). 

Tenant pays $500, leaving me with around $223 a month. When I move out in the future I hope to rent my side out for $600, putting the total rent at $1100 a month, minus the total payment of $723 giving me around $377 cash flow.

Good or bad deal?