All Forum Posts by: Jordan H.

@Kyle Scholnick

Every state has a property database. Just google Maryland property database or something similar. When you find a property you're interested in, the property record will show the owner's name and the address on file.

I believe companies that build mailing lists simply scrape this data from various websites and sell the data to customers.

Fannie and Freddie allow 5% down mortgages on 1-4 unit housing. I learned this while looking into their new 3% down payment loans (which sadly only apply to single unit homes). I have not spoken to any lenders to see if anyone is actually making these loans.

Not sure on the policy of linking to other sites, but here's a link to Freddie's rules.

The appraisal is based on the property. Not sure how you can force an "appraisal" equal to a previous sales price.

I've personally never painted an exterior. I think paying a pro here is money well pent. For the interior, use drop cloths to cover the floor. Tape the ceiling to wall joint and go for it. Taping should go quickly if you don't have to deal with high ceilings. The blue tape works great but cheap masking tape stuck better to an old popcorn ceiling. You still have to use a brush along the top of the wall, but wider tape allows you to use a roller close to the ceiling joint without making a mess. Keep a damp rag nearby to wipe any drips off the floor.

It takes time, but it's really hard to mess something up. 

@James Wise@Sonya Stovall

There is not much on MLS, but I'll continue to keep my eyes open. For me, it's worth the time, money, and experience to contact a few owners. Thanks for the replies and well wishes.

Hello,

I'm currently searching for my first property. I'm looking to owner occupy a 4 unit building here in DC. So far, I've been exploring the neighborhoods I'm interested in and now have a list of a few properties whose owners I plan to contact.

I'm currently planning to finance a property with an FHA loan (or possibly 203k). I've also been reading a bit about seller financing, subject to financing, and borrowing from hard money or private lenders, then refinancing. HML only seem to be good for flips and when you find an amazingly good deal on a property to buy and hold.

Most direct marketing seems to come from buyers who offer cash and fast closings. Since I can't provide either, I'm a little stumped on how to reach out to potential sellers. As a non cash buyer, any suggestions on how to engage sellers when I mail to or call them? How do buyers promote seller and subject to financing? Is it best to be comfortable with all of these types of financing so I can be ready to use whichever fits the seller's situation best?

@Account ClosedIf you can afford to buy while still paying on your student loans, by all means go for it. While it's usually (always?) a good idea to pay down personal debt, I think saving your cash for a down payment is better use of those funds. I'm in a similar situation in that I have student loans and I'm looking to buy my first multi unit to owner occupy. I feel it's more important for me to get started in REI than to eliminate my student loan debt. I'd be more comfortable making a big lump sum payment and/or increasing my loan payments once that cash is supplemented by rental income. I feel like this is the best way to begin and grow in REI in spite of student loans.

I also suggest treating yourself as a tenant when analyzing properties. This gives you an idea of what the property will bring in whether or not you're a tenant. It also keeps your personal finances separate from your business (REI) finances.

I'm a DC investor and I use the same guidelines you do. I however was not aware of rentometer.com and will certainly make use of that resource. I usually have a good feel for rents but often use Craigslist to verify.

I feel that the 50% rule is quite conservative due to the higher rents. I have not gotten to the point of looking into expenses for a particular property however.

What types of properties are you looking into? Which areas of DC? 

Just a thought about Roth IRAs for lower income folks...

For those with low incomes (teenagers who only work summers or college student who work part time), I suggest putting money into a Roth IRA. This may be their only opportunity to make tax free investments. Low earners typically have no tax liability, and when they contribute to an Roth, you're getting a tax free contribution, decades of tax free growth, and tax free withdraws in retirement. Can't beat that!

I have a co-worker who made a deal with his kids. For every dollar they contributed to a Roth IRA, he would pay them back from his cash.

At a RE meet up, I've heard folks estimate $10,000 to dig out a basement in average rowhouse. Does this number sound low?