All Forum Posts by: Jay Y.

Thanks everyone!

Theresa K. I made a visit out there and got to see some of the properties. I liked what I saw, so decided to make a move.

*********** It's in South Chicago. I own a few local rentals but this is my first venture into out-of-state.

Aaron Mazzrillo Thanks. I would love to buy more locally, but prices have climbed up 20 to 30% this year alone. The properties I am holding have appreciated a lot, but they still don't cash flow that greatly. I decided to focus more on cash flow this time around.

Timothy Joe I'm looking at between 15 to 20% cash-on-cash. Anything along those lines is fine by me.

Alexander Dajani Welcome from another Bay Area investor!

I haven't done this personally, but a common strategy a lot of people use when first starting out is to take out a FHA loan to purchase a multi-family property.

This way you only need to come up with 3.5% down, can secure your own primary residence, and have other tenants pay for most (if not all) of your mortgage. This will help you save funds for the next investment. Also, you get to learn the ropes on what it takes to be a landlord.

Theresa K. I purchased a 2-flat in Chicago.

Jenkins Ramon Thanks! Exciting times ;)

DONE! I wired funds over to the title company and closed on my third rental today! This will be my first experience with an out of state property... so we'll see how it goes. Nevertheless, I'm excited to get started and looking forward to more cash flow coming in each month!

Very interested!

Welcome to BP Grace! glad to have you on board!

Jon,

Yeah, I've heard the same before as well. My lender didn't get into specifics, but all I had to do was show them one statement and I was good to go. Granted, I only had to cover reserves for two properties, so my 401k could easily do that, even with the discount.

YMMV between lenders. I've used the 401k twice now with two different lenders. No muss, no fuss, so it seems to be universally accepted. Sure does make it a lot easier to come up with reserves...

401k, Roth IRA's, etc. work as well. I'm using the 401k as we speak...

Craig Montesano, congrats on all the early success!!

Awesome tenants are the best! That's one of the reasons I chose to get involved in SFH first. My first tenant told me she was desperate to get out of an apartment building. So far, so good. I'm trying to close on my third rental this month, and am still on cloud 9 from the first two deals.

All the best!