All Forum Posts by: Henry Bagh

@Ray Hage thank you!

@Robin Simoni see you are a lender. Would in house financing lender have lower closing costs?

@Jason James my guy, thank you so much!

@Remington Lyman yes, please

Hello, 

I live in Los Angeles and I am pretty liquid. This is a two part question and I hope someone can guide me in the right direction. 

1) I am looking to buy Single Family Homes in Cleveland, OH to rent to Section 8. With average price of $70-$85k, I am considering either buying 10+ all cash or by using DSCR loans. With interest rates at an all time high, I am wondering if I should buy all cash at the moment, wait until rates go down, and refinance OR should I just jump into DSCR loans immediately so that instead of i.e. 10 units, I can get i.e. 30 units instead with less down.

On a $75k purchase, an 8% interest rate vs a 5% interest rate isn't much difference, so I'm leaning towards DSCR loan vs my own money. However, I've spoken to a lot of lenders and closing costs end up being like $4-5k (which is a big chunk of a $75k purchase). Any advice on which way to go with this?

2) On the legal side, since I live in Los Angeles, I don't know how to structure property out of state. If I buy in my personal name, I don't have to deal with franchise tax ($800/yr) for an LLC. However, I am opening myself up to risk for lawsuits, etc. And if I have 20 properties in 10 different LLC's, that adds up and kills a lot of rental profits (10 x $800 = $8k/yr).

However, from some pros I've talked to, in order to avoid paying taxes on LLC's out of state as a California resident, I need to open up a Wyoming Statutory Trust, which leads to a Wyoming Holding Company, which leads to each Cleveland LLC. And the quotes I got for setting up these structures is like $10k. Though I have the money to pay for this structure, I am new to investing and I don't want to jump into creating these expensive structures when I'm not even a 100% sure I'm going to scale in Cleveland. Who knows what happens after I buy my first couple rental properties? 

I just want some guidance on how to quickly start, get my feet wet, and make the bigger choices later on, when I start stacking rentals. Im in analysis paralysis and it isn't allowing me to make a decision. Can I just create a quick OHIO LLC, and purchase a property? Do I just buy in my personal name?

Thank you in advance and I apologize for the long post!

@Michael Smythe thanks a million!

Hello, I am looking for a recommendation for a property manager (preferably an individual) who can manage multiple properties in the Cleveland, OH area. This job will entail screening tenants, leasing properties and handyman work. All the properties will be on Section 8 (longer term tenants).

Ideally, they have experience with electrical, HVAC, plumbing and management. 

If they are familiar with Section 8 tenants and requirements, it is even better.

If a home needs TLC, I'd want them to be able to give a quote and get contractors to get it rent ready, screen tenants, do Section 8 inspections, etc. 

If you know anyone that is good, please send them my way!

Thank you in advance!

Would we be able to do 9% with minimal closing costs?

Hello, I'm based out of Cali and i'm thinking of purchasing my first section 8 rental property in Cleveland, Ohio. 

Purchase price $75-100k. 
Does anyone have any good lender recommendations for DSCR loans?

Whoever I've called has about $4-5k in closing costs, which is a lot in comparison to the purchase price. 

I know most lenders are in the 8-8.5% price range, but are there any with lower closing costs and little/no prepayment penalties?

Thank you for your help in advance!