All Forum Posts by: Jack Krusinski

I would recommend increasing rents but not right up to the market rate. Increasing their rent to $2,100 would likely lead to them leaving. But if you increase rent by $100 or so this will allow you to cash flow and keep your tenants. 

Recommend getting a home inspection even with a new build! A new build doesn't mean it was a good build. Being there for the inspection will teach you more about your home and what to look for in the future. 

Hi Mario, 

We AIM to achieve $250 a door for our clients and us as investors. However, with rates being up and pricing still climbing here in Cleveland, achieving this has been hard and harder. 

Hi Cody,

Glad you all are taking the first step! Out-of-state investing can be a long process, but the first step is to understand what goal you are trying to accomplish (Cash flow, appreciation, tax savings, a combination of them all?) and then identify the market that best meets your goals. 

We are still buying with the right deal. I believe in our market if interest rates fall, it will create another buying frenzy. Right now even with rates high we are able to find cash-flowing properties. 

Bigger pockets has a great rent estimate tool. Rentometer is good as well. The best source is talking with a local property manager! 

Hi Molly. Most of our out-of-state investors buy more turn-key properties and buy sight unseen. But we do a facetime walkthrough, send additional photos and videos through a drop box, and then the investors see additional photos/videos from the inspection. Buying a rehab property out of state is possible but very difficult and risky. Make sure you have the right team. I would suggest starting with turnkey property and growing from there! 

Hello. If you are paying all cash, your cash-on-cash return will be lower. I would say a realistic expectation is between 3% to 5%. 

I am a believer in time in the market, not timing the marketing. If you find good deals no sense in waiting till market conditions are perfect. Because, most likely, they will never be perfect. If you find the right property, date the rate and marry the property. At least, that is how I invest. 

In my experience, it depends on the loan you are getting. DSCR, commercial or conventional. For a traditional conventional loan, you will not be able to buy in your entity name. For a commercial or DSCR loan, lenders will look at the member's credit score and other aspects of their background, but the main underwriting comes from the property's performance. My answers are below in parentheses.

Does this increase the approval amount if approved using multiple incomes? (depends on the type of loan you are getting. If conventional yes. If DSCR or commercial typically no)

Lastly, if, say 3 of 4 members can qualify, and one doesn't, does the loan get denied? (typically not but it depends on the type of loan.)