All Forum Posts by: Jaron Walling

@Charlie MacPherson Yes someone is taking a loss! I like this area of Indianapolis and it's half the distance to my job. I'm planning to house-hack for my first investment which is the only reason I'm looking at it. 

@Joe Splitrock Thank you for expanding and answering my suspicion. I figured this topic would fire some people up. My instincts told me said property was worth $40,000 so not much off your estimated value!! 

I agree with @Jennifer T. and save it for a 6 months reserve fund. Banks and lenders will want to see that if you're looking to expand the portfolio. 

Cash flow from you're previous properties will be very important when applying for new loans. Some lenders can use that income to swing the DTI in your favor. I'm reading that .43 is an benchmark for the upper limit. If you're able to decrease the PITI that would help. 

What banks have you applied at? Local or national chains? If you can get the other property rented out and it cash flows that could significantly help your DTI.

@Steve Vaughan wow!! Like everyone is saying deals are hard to find, but if it's to good to be true it probably is. It's no different than buying used cars or motorcycles. 

Thank you guys for the responses. I've lived in Indy for 5 years and have a good understanding of the neighborhoods. It's unbelievable what those investors are facing! Being patient and due diligence is the only way. I won't bank on getting anywhere with the property. 

You're in the Midwest so you have a lot of options! Congrats on the success of your other properties. 

I think the answer lies in how much money is at play, what kind of lending options you qualify for, and what property type you focus on. Indianapolis has a lot of flipping going on. Lived here for 5 years. It drives me crazy that I waited so long to get into the game. 

I'll definitely look at more discussions! Here is the information provided from the property card. Could someone explain the difference between type "Sale/Straight"? 

Jay - thank you for replying to my post. I've seen you all over the site in the last few months. Learned a lot from your discussions.  

Is this property move in ready? If not you'll need money to fix the place up or talk to the lender about financing the rehab within the loan. Some banks don't loan on junk properties. Like Nathan mentioned above, it's best to figure out all expenses (property tax, insurance estimated, cap ex, vacancy loss, management) before considering the deal.