All Forum Posts by: Jenny M Valcore

So, yeah, it's covered, since it's an old gas station.. and has an indoor/store . at least that would fix the weather issue and still allow for outdoor. 

I am not sure of the details of everything.. but there is an empty gas station across the street from my rental house on Oakland Park Ave.. I think it would make a super cool bar if you turn it into a bar situation and that street gets a ton of traffic. it's owned by someone, so you'd have to rent it and then kind of rehab/rework it into a different sort of 'lube' stop. but could be cool! Just an idea. 

Hey Dylan!! Thank you so much for the response. I decided to go 20% down... because I want to maximize my cashflow potential.. and just budget well for the rehab work. I will know more after Thursday this week when I walk through with my contractor and inspector... so can get a better idea of what to prioritize to get it in rent ready condition, but not overshoot it for that condition and spend too much.. I'm happy with the contractor I found and he's super great and local so I know he'll do good work and help get me supplies at cost as much as possible. I'll put in sweat equity too as much as I can. 

Loan locked in today because rates are on the move again, so I'm going for what I can get now. 

Lubbock!!!! I once new a guy from Lubbock. He was cool. His name is "Chance" . 

cheers!

Jenny

Hi James! yes, that does sound like a lot. I might be way off the mark since I do not really know who much things cost.. Some of it I will do myself or with some help.. the rest with a team of contractors. I will find out more when I walk through it with the inspector/ contractor this week and get a scope of work written up. 

I do not think I will do full remodels on kitchens and bathrooms.. more like upgrades. luckily the house is small.. and the floors , if I cannot refinish all of them, I might add LVP on top instead to protect them and alleviate cost. Would be happy to take you to a coffee to get any advice or connect! I am in Lewis Center.. 

Right now I cannot really tell how much the renovations will cost.. So I will get a better idea of it when we walk through it this week. I am not good at estimating cost of things myself since I am just too new at this. I can access other funds if necessary, but I am trying to limit the budget so that I am not putting more than 50k into the deal that I cannot get back out. ? 

Thank you! I want to hold the house for 10 years or more.. I am not flipping it. 

Looking at a 30 year mortgage. I am also not a fan of PMI, but since I am taking an investment property loan on it , not a primary house loan, the interest rates are higher and rules tighter..

I do have wiggle room if rehab goes over-budget, but I don't want to rely on that as a backup.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $163,000

Currently in contract.. looking for advice on financial structuring... all houses i've put offers on in this area are going for cash, no contingencies, OVER asking.. I found an awesome agent and somehow landed this deal for slightly under list price, with remedies, no appraisal gap coverage and inspection contingency.. Walking through with my inspector can contractor on thursday. I'm very new at this and thank you all for any support !

What made you interested in investing in this type of deal?

Just moved to the area, and want to invest in real estate for future financial growth and stability. distrust of current paper markets. columbus is on a growth trend. like a dark horse. tech-driven city in the rust belt.

How did you find this deal and how did you negotiate it?

Found a fabulous agent.. she did the negotiations..

How did you finance this deal?

currently in contract.. looking to finance it as a rental property. I am currently uncertain if I should put 15% or 20% down.. there are pros and cons to both, and the market is wild so I am not a secure with what it will be doing in the next 2 years.

How did you add value to the deal?

We will be rehabbing the bathroom, kitchen, resurfacing floors, painting and adding a privacy fence. should add 20K or more to the property value.

What was the outcome?

n/a

Lessons learned? Challenges?

still learning.. and lots to go. lessons.. keep at it! and 'extrovert yourself' like G.C. says.. I've been talking to lots of people and driving around a lot over the last month.. studying constantly for the last 3 months. i'm still so new at this and learning all the time.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes! Amy Branson RE/MAX connection

Hi All! I am in contract on my first SFH rental property and would like some feedback/advice/comment on how I should best jump into the loan on this property with my current financial situation... here are the details and thank you for any/all who comment and give advice!

Sale price $163,000 , - property needs approx 10-15k rehab to get market-rent ready.  [I have Good credit, not excellent, and I have 50k at my disposal to get this project going]

Conventional Loan for Rental Property. Requires 15 down at least.. 

Question.. should I put down 15% or  20% ?

1. Cash invested at closing @ 20% = 38,000 w/rate lock at 5.75% [cost .8 points] [[ $761 mo mortage/interest cost ]] 

[$12,000 left for rehab work  |  tighter budget restriction and greater cash flow potential, more money left in the deal, but greater potential to cash out or HELOC sooner ]? 


2. Cash invested at closing @ 15% = 31,500 w/rate lock at 5.75% [cost 1.8 points] [[ $829 mo mortage/interest & PMI cost ]]

[$18,500 left for rehab work | bigger budget for expenses and less cashflow potential, less money left in the deal, longer time to be able to refinance etc? depending on market.] 

Thank you all!