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All Forum Posts by: Jerell Edmonds

Jerell Edmonds has started 4 posts and replied 13 times.

Post: Starting out with my first duplex

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6

Closing on my duplex on the 3rd of next month . Im wondering how did everyone else acquire their second or third home?

Post: Approved for 350k

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6

Hello everyone, I have a quick question. I am looking for a (LTR) in my area and then to expand out of state for my next one. I currently have been approved for a loan of $350,000, but it is not enough for a multi-family home in this area. So, I was wondering if it would be best to buy a (SFH) and then rent it out fully after a year. Then, I would use a conventional loan for my next house, hopefully a multi-family. Any advice would be greatly appreciated."

Post: Starting out! MF Investing. How did you start?

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6
Quote from @Dave Skow:

@Jerell Edmonds 1) pick a scenario and get pre approved for this scenario ..you can always adjust the pre aprpoval as needed based on what you actually end up doing ...buying OOS or in state wont make any difference with the pre approval ...2) you will likely need a large down payment for the rental ..15% or more if buying a SFR and 25% if buying a 2-4 ....3) the rental income from the new proeprty is determined by the appraiser when appraisal is done 4) conventional loan with 20% down is possible for the new loan ...5) pricing for the rental property loan will have higher rates / fees as compared to primary home loan


 Thank you so much for the information!

Post: Starting out! MF Investing. How did you start?

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6

Hello everyone . I just have a quick question . Now I want to invest OOS but everyone says buy in your own neighborhood first which I understand. My question is say I do buy my first MF rental and house hack it could I use another loan say a conventional loan and purchase one OOS with a 20% down payment would that be doable? Or is there restrictions and would this have a great impact on my DTI. Still in the New England area which is pricey an I know I said cash flow wasn't the most important thing we def would not like to be cash flow negative either. Because the houses we ran numbers on would more than likely cash flow negative unless i'm doing something wrong but then again I know this area is very high so that's why we're looking more towards investing OOS.

Post: First time home buyer

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6
Quote from @John Williams:
Quote from @Jerell Edmonds:

Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.


 Looking outside of your own back yard is a great way to get started. Many investors from some of the more expensive markets have been trending in this direction. My company has seen a lot of demand from out of state investors recently. We are located in Clarksville, TN (where cash flow meets appreciation) and we have a really resilient and stable/consistent market. Let me know if you'd like to connect!

Cheers!


 I would def love to connect!

Post: First time home buyer

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6
Quote from @Michael K Gallagher:
Quote from @Jerell Edmonds:

Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.

 Hey @Jerell Edmonds Welcome to the forums.  And to eco what @Tim Johnson said there is no right or wrong its really what you are ok and comfortable with.  The benefit to investing out of state, is that it forces you to develop the systems and the mindset from day one that you are not going to be physically going to these properties and fixing things, you'll be training yourself in "leadership" type tasks and systems and that will make it easier in my mind to scale.  That does not mean you should not come to OH and visit your investments or visit the areas you are investing in specifically, but it does keep you away from the day to day a bit.

Other than that I'd say that OH in general and the Mid-west are going to be lower priced markets than what you see in RI and New England, but of course within OH there are many different markets and plays you can make.  Just a note to what you said above, if Cashflow is not the most important thing to you, I'd look closer to central OH for your OH market aka Cbus.  Toledo and Cleveland are not appreciating or growing as fast as central OH.  So you can still get some cashflow, not as much as in Cleveland and Toledo, but you'll get way more appreciation and economic growth in the long run.  Just my two cents as a local here.  

and if you have any specific questions or want to look deeper at some deals in the OH market let me know I'm happy to connect.  


 Man thank you so much for that tip! I Shouldn't say cash flow isn't important for us because it is but we're more focus on building our portfolio up an leaving our w2 jobs. Most definitely we would come down to check area an property. For sure have to do more research on out of state makes me nervous thinking about it but life is a chance anyway so I'm looking forward to this chapter.

Post: First time home buyer

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6
Quote from @Tim Johnson:

@Jerell Edmonds Obviously no "correct" answer here. My 2 cents: start close. Unless you have a team of partners on the ground in OH, that's a long ways from RI to run into troubles. Every market will have deals (maybe not on the MLS) if you dig deep and make connections with people. You'll scale up quicker (in both properties and funds) if you find a great deal close to home to get rolling.


 Thank you that is true I might have to look for my first one in my own area just to get the hang of things. My biggest issue was just living in because thats going to take some profit but gives me time to save as well. 

Post: First time home buyer

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6
Quote from @Stephen Brown:

@Jerell Edmonds I think you are being very wise in considering the Toledo market. I know several investors who have scaled here very quickly. Our market is definitely overlooked given the hotspots of Cleveland and Columbus. We have a great market in terms of long term renters and stability. Rents keep growing here too because of the lack of supply. 

With this being said, I don't think there is anything wrong starting where you are if you have the teams in place. I would be more than happy to help you get your team here though is you decide to go the Toledo route.

That would be amazing I'd love to connect an build over there because I feel like I could scale much quicker up there. 

Post: First time home buyer

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6
Quote from @Sebastian Marroquin:

Hello! My quick view from 1000 miles away and not knowing your situation at all :) 

For me it comes down to the Math. 

If you buy out of state even in a lower price you will have to put down at least 20% to 25% and if you buy where you live you could buy a primary home for 3.5% to 5% down. 

The difference : 20% on $200k : $40k plus closing costs  And 5% on $400k : is $20k plus closing costs which is much lower for a more expensive asset. (Or to control more money with leverage or a loan). 

If you don’t own a home yet: this is a no brainer in my book. If you own a home already, rent it out and buy another primary home. 

We first bought a condo, then a SFH and next another SFH at 5% down again - with a higher price.

You know the area, you know the demographics and economics. You will can meet your core team members face to face and get a sense of what you will need once you go out of state if you ever do! 

There’s a lot more of course: Rent to price ratios, prices, etc etc 

Let me know if you have any questions and if you need referrals to Realtors or Lenders anywhere! 

You could start in your town or in your state, get the hand of it, build some equity and force some equity by renovating or additions, ADU's and then move the equity to lower price point areas.

For example: I’m in CA : where prices are between $600k and $800k : buying at 5% down payments still make sense! Appreciation at 5% per year will be around $35k per year and loan pay down about $20k to $25k per year: so in theory, in 5 years I could have at least $200k of equity to deploy in for example: Ohio and buy 1 or 2 homes cash for cash flow for 3 to 4 houses with 25% down. 

Build your strategy and plan first and then make a decision and get started! 


 So true my older Brother is a real estate agent down over here and he keeps telling me the same thing buy your first home down here. But some MF down here are just so pricey for my liking and I get they look at it like a business but we would need double the funding because we want to go with 20% down so we don't have to live in it. An I tell my self my first home would be a rental . I do have a plan in place we just might have to go over it some more . But you're right makes more sense to invest in a area you already know. Ill have to keep looking but doesn't mean I cant get one here an do they conventional out in OH . Its all so exciting the thrill of it all! :) thank you for answering greatly appreciated!

Post: First time home buyer

Jerell EdmondsPosted
  • New to Real Estate
  • Rhode Island
  • Posts 13
  • Votes 6
Quote from @Remington Lyman:
Quote from @Jerell Edmonds:

Hello Everyone! Im a newbie looking to get into the world of real estate investing. I currently live in RI. The house prices seem a little too high for my comfortability to begin I mean I don't mind because I know how LTR work for multi family. But my question is I've been doing some research out of state an Ohio seems like a decent area. Im looking in the Toledo & Cleveland for MF. I do have another partner involved with the goal of building an amazing portfolio of multi family for LTR or even SFH with LTR . We want to build a passive income so we can leave our w2. We're looking to scale quickly we do have a decent amount of funds saved up. We also have maybe 80k in available lines of credit I know thats not the best way but that's in reserves for us . Cash flow isn't the most important thing at the moment for us but ofc its a plus its more about getting started and building we both understand money will come. Would investing out of state be the best way to start or to jump into in your home town? Any advice would be greatly appreciated.


It does not matter where you start as long as you develop your Core 4. The core 4 is David Greene’s long-distance investing strategy and consists of a realtor, contractor, property manager, and lender. Once you have this team in place, you should be able to invest in any market confidently.

As for picking a specific market - I would go after one with an increasing job and population growth. I invest and work in Columbus, Ohio. I am also looking to invest in Cincinnati and Cleveland.

 Yes I was reading up on that! I definitely want to build relationships down over in OH. That's Amazing advice. Are you investing A class areas or B&C areas?