All Forum Posts by: Gary Dezoysa

Wow, those sound like residential mortgage numbers! As to the expense ratio, noted and thanks as well. Lowering it to 40% seemed to fix everything. 

Hi guys,

I've read some Ohio jurisdictions won't accept less than 80%, or even 100% of appraised value during a probate sale. Does this apply to Toledo?

It sounds like Ohio is a confirmation state then. Or are there any "bypass clauses" that allow skipping the court confirmation/auction phase to help lock in a better deal?

I'm running the numbers on an 80k example house in an Ohio market. 20% down works with a 4% rate at 30 year amortization. Switching to 7% at 25 years the numbers go bad. 

Here's an example: 80k house, $800 rent, 54k mortgage, 6.8% rate, 25 year term. COCR 1% and DSCR of 1.06 means the financing converts it to a non-opportunity:

Am I missing something guys? I haven't even included points into the above. Seems impossible to make commercial loans work on SFRs even in cash flow markets. Yet others post here that they're making it happen. My guess is:

1. They're coming with maybe 50% down

2. Or they get deals deeply under market

I notice duplexes are maybe 1/3 more expensive than SFRs in Toledo but generate 75% more rent. Seems like a good deal. Primary downside appears to be less inventory though still not bad.

I hear tenant quality is a step down though. In markets that are already low cost I wonder if I may be getting myself and my PM into a headache by buying in a B area but actually getting C tenants. What do you guys think, are they trouble for out of area owners? Or still a pretty good option?

PS: I am also considering Cleveland and Memphis

At $40/yr I think I'm going to try it out. Anyone able to comment on whether it feels a bit high, low, or plain inaccurate for the area?

Hi everyone,

A Toledo investor mentioned that no permitting is needed for rental houses, unlike some other Ohio markets. I wanted to ask if a permit is needed before a landlord rents a house in Cleveland and surrounding municipalities. If yes, how cumbersome and costly is the process?

Hi everyone,

I've spoken with several lenders and my picture is no good for conventional or bank statement financing for a while. I wanted to ask about portolio loans, specifically whether they are a possibility for cheap houses. My target market is Toledo where B/C properties can be found in the 50-120k range and I was hoping to target the lower end of that range. But I read this:

Are there any lenders who will do portfolio loans on 50-80k houses? Or will I have to move up my purchase price target to 100-120k in order to obtain this type of financing?

Thank you @Kevin Romines! Yes self employed, but that would not shorted my wait time as I was only recently self employed (I was a zero income student prior).

I will reach out via your website. (BP has disabled my messaging, I need to ask why and get that sorted). Thanks again!

Hi everyone,

I wanted to ask what my best option might be for my first investment house in Toledo. I am out of area.

- A cash purchase on a 65k house would take about 1 year for me to save for

- Conventional financing will take 2 years of positive tax returns which I don't have yet. I discussed my situation with an REI friendly loan officer

- Being out of area I don't have a local network of private lenders to tap into

I think my best option on years one and two is to wait and cash purchase one house each year. My savings rate of 6,500/month appears my biggest asset for now.

Or is there another option you guys might suggest for me?

Thank you!

I don't think there is an investor subspecialty but if the agent knows the area well, sends deals and is honest that qualifies for me!

I guess I will spend the extra time to get second opinions as I do my own vetting. Houses aren't cheap!