All Forum Posts by: Stone Jin

@Bhushan Walde as others have said before you cannot just make up a number of months on the deposit.  There are state laws that govern that and if you take more sometimes you will need to pay the tenant interest on the excess amount.

Also 1997 is 23 years ago,  a 20 year old kid is not the same as a 43 year old man.  If he has strong rental history and employment and good credit history (make sure he pays credit card and car on time), then it may be worth a second look.  

@Vera Kearns  There is a lot going on here.

1)They cannot force you to use a specific vendor.  

2)The machine is a called a dehumidifier

3)You likely cannot evict while covid and cdc moratorium is in affect.

4)I would offer them cash for keys.  Offer to pay for the moving truck.

Citizens Bank, 80% was their highest LTV. My portfolio is all in B+ A- areas. Results may differ. My point is to call around to the local banks and ask for a commercial banker.

@Matthew H Lohens

I’m not sure where you would find financing for sub 50k properties in war zones. For your first investment I’d strongly recommend something a lot less risky. Investing into d neighborhoods from out of state is super risky. I’m out of state and find the suburbs out toledo to be a much safer investment.

@Alexander Sheridan I would start talking to commercial bankers.  They can do a portfolio loan for the entire package at 20 year amortization 10 year loan 5 year adjust at 4.25%.  I was talking to them not a month ago and they offered that on my portfolio in Ohio.  As long as your portfolio is seasoned and cashflowing, commercial loans are a good option.

@Ryan Cleary talk to some custom home builders and general contractors.  I think the $250 a sqft number is sky high esp since you own the land already.  I recently had a conversation with a custom home builder in Ohio their numbers for a 4plex was around $125 sqft without the land.

@Jeff Dixon You will only be in trouble if you are busted, and if you are busted it'll be for mortgage fraud.  

@Christopher Abele I monitor Anthony Wayne school district and have seen basic rentals go from 1400-1600.  If you are going to update the property, you can probably get at the high end of that range with some nice flooring/paint/appliance/fixtures for a 3/1.  The one thing I would say with some level of confidence is that don't price your rent too low.  There are higher quality renters out there.  

@Michael P. thanks for the shout out... kind of :)

@Christopher Abele

There is a lot to dissect.  Is the house in a suburb if so which one (we own in South Toledo, Maumee, Sylvania)?  There are sections of Toledo where rentals are scarce.  At 112K plus money for rehab does it cashflow at $1100-$1200?  

To answer some of your questions.  I'm assuming the seller doesn't have to walk away from the mortgage.  If he just wants to subject to the property then that would be better.  Just pay off the ex and take possession of the home and pay your friends mortgage until you figure out the rest.  You need to find a sales contract and a title agency that knows this type of transaction.

If seller no longer wants the mortgage. Then I would take out a loan from your 401K for whatever the max allowable is currently. 18K doesn't go very far if you need down payment and rehab. I would talk to a hard money lender or find private money to purchase the property and then rehab. This is basically a BRRR at this point. Run your math.