All Forum Posts by: Jayme Jahns

Hello, I'm a first time investment property buyer and I have found a duplex that is perfect (great cash flow, long term tenants, fantastic condition ect)

But it is listed at 329k and because if our down payment maximum we can only afford a Max offer of 315k and can't afford to pay closing costs at that price (unless they can be rolled into our loan maybe)

Anyway, the house has only been listed for a few days, the listing agent has gotten a few calls already. We understand its extremely unlikely we will get it accepted. 

What strategy would you guys recommend to help give us a chance? Should I write the first offer with a letter explaining? This was all we could afford to offer and we have a 1 year old and trying to invest for her future or do you think we should just wait it out to see if it's still available in a week then offer? I would be surprised if it's not pending by then though.

And I would like to at least try so I know

That I did.

Thanks for your advice again! 

Thanks for your replies. From what I am hearing, it sounds like anything less than 25% is only for single family homes and not duplexes or above. This is a duplex. So maybe it just us required. 

I was going to check around but if there is no chance anyone else could do 20 down on a multi family home, I suppose there is no use in trying. 

This is a bummer, this duplex is a good deal. It cash flows well and is in fantastic condition with current long term renters. 

Hey Jason, yeah I didn't buy the Auburn one. This is a different property. It actually has a great cash flow. But it's list price is 329,000 and if we have to put 25% all we can afford is 315,000 and we would have to roll closing into the new loan because we have no more cash for it at that price. 

I would feel fine offering 315 except that there are many people calling about it and interested. It's only been on market for 6 days.

everywhere I look online it says 20% down for investment homes but we are being told by all lenders it's 25%.

It's a duplex in Washington state. 

Does anyone know if there are lenders that will do 20% down? 

We can't afford 25% on the duplex we are interested in.

Thanks!

Josh, this is amazing!! Thank you! I will definitely use this resource! 

Great advice.

Thank you both for the info! 

Luckily, I am able to fly out cost free thro ugh a relatives benefits to see the place before buying and whenever we need to check up on it. Maybe monthly or every other hopefully. I would be astounded to get a CAP of 10 or even 8! Here is a stretch to find a 6.

I'm still waiting and looking in my area as well but not too sure how long before our prices come back down. 

At any rate, great info from both of you and I will keep it in mind while looking. 

I do want to make some Texas contacts. I only have one that I know and tryst but he is in San Antonio and i can't find anything in that area right now. 

If anyone knows any good contacts that do property management and or real estate agent please let me know. 

Thanks!!

Brent coombs,

Get off my discussion. Your not even correct or helpful. I talked to a financial advisor who told me there is nothing smarter than paying off your home and NOT paying the obscene interest over 30 years. 

At least I have my house paid off at my age. That's more than I can say for most people my age.

Don't come on here to post bitter, useless comments. 

Why don't you learn a hard lesson about being a internet troll on a professional forum.

And every other professional on here has said the market varies all the time so it's just as easy to wait it out until it drops again. 

Worry about your own debts.

Hey, just weighing more options.

Can I get a pro/con list for buying a multifamily home out if state for your first time rental? Specifically Texas, I live in Washington state and the cash flow here is abysmal. Lucky to get a CAP of 6.

In Texas, I've noticed a few quad and duplexes in the following cities 

Fort worth

Killian

Austin

Dallas

San Antonio

For my Texas pros, what is your read on these areas? Crime? Vacancies? Ec t. 

Also, is it very difficult to get approved for a loan that is for out of state rental? I already am pre approved for the loan in general. But haven't asked about approving out of state yet. 

Thank you all so much!! I'm still new to this but learning.

Thanks for your input Wes, I understand what you are saying. I know not to rely on appreciation now after talking to many investors. I guess my main issue with this property is I'm afraid my math will be off. If my cash flow is fairly low, would my repairs run over and put me in the red? The answer I got was more than likely yes, do not buy a place with such little cash flow that if your repair estimate is off, you can lose money. The only other issue being the prices in Washington state are very high so it is very hard to find a place with a CAP RATE of even 6 or 7. But, in response to that, I have been told to wait it out. There is no telling when prices will come down again, it could be 3, 5 or 10 years from now but I still have money I want to invest so I can make money during those years.

So, I'm doing two things right now, waiting out some of the higher priced places to drop in price that have been sitting on the market and looking out of state in Texas. Out of state, being more complicated. I'm trying to avoid it, but Texas prices and rents offer atleaast double the cash flow than here.

Anyone have any thoughts on these areas?

I'm looking at Austin, killian, and fort worth. Also San antonio, I hear is a good area for renters near military base. You always have renters.

Thanks guys!!

As for becoming a real estate agent, that might be practical one day if I'm rolling in the cash money for investing. Which I could validate the 200 a month cost versus cash flow I would gain in investing.

It sounds like a smart plan for someone that does have quite a bit experience and the funds to pull it off.

From my perspective, I have very little interest in representing clients or being a broker. I'm not a natural seller and dealing with people is not my thing. Which is why I would like to hire property managers if i have the cash flow for it. Which I will hold out for until I do.

I'm more of the hang back and work independently on my own, type of person. I'm creative and like just sitting at my PC and working on my CG/animation/digital art skills.

This whole real estate business is not a long term career goal but more of an investment goal. But even being that, I have to be educated in it enough that I know what to invest in and when. Which is why I've been devoting so many hours to studying the market recently. But, it's hard to learn some elements unless you have already been in the real estate investing game. 

That's where you guys have helped me fill in the gap on that knowledge you gain from just being in the game.