All Forum Posts by: Joey Palmer

It sounds like you've got the right mind set. My advise would be to find that 4-plex with numbers that work for you. With It being your first place I'd stick to an area where you can snag B class renters since you will be sharing the dwelling. There are many things you can do to attract these B class renters. Utilize that 203k loan to rehab the units, the nicer the more attractive tenant you will attract. Be sure to be thorough with your screening. Beat of luck, keep an open mind, and keep learning!

>$10,000 Ask this again next year 😊 Making great connections and learning even more. Keep up the good work people!

Terry, this is a great topic. Your going to get some differing opinions.. 

I've lived in the Mid-West my whole life and a big part of that has been spent dealing with snow and I know Wisconsin is on a whole other level. This one element alone has made having a garage important to my tenants. I mean who likes having to go outside and scrap off they're car at 6AM before heading into the office? Snow is not the only reason but security. Though the area I own in is safe it provides both the tenant and their property another level of security and peace of mind.

I own a duplex and charge the tenant using the (1) car garage $100 more a month. Not every house in my urban/yuppie part of town has a garage but I think the fact I have one helps me compete with the new apartment/condo complexes popping up all around me. 

I'm not sure what it would cost to have a new constructed garage but considering your climate and how much more you can charge ($100 in my case, I've heard of even more). I believe the additional income would cover the cost in no time. 

I hope this helps Terry. Best of luck.

Hi Tanner! 

I was jumping on to BP this morning to ask the same question for the same market. I'm a local investor that has had to turn down big renovation projects due to the fact I haven't found a contractor I'm comfortable with yet. I'm going to reach out to some of my connections here on BP. I'll PM you with any results I receive. Please do the same.

Thanks and good luck! If you have any questions regarding Cinci and the different neighborhoods please let me know. I'd love to help.

Joey

Hi Alex, 

The way I started was by utilizing an "first time buyer" FHA loan (very little down, I believe 10k on a 170k home) to purchase a (2) family house. It wasn't the prettiest and 1 unit was in better condition than the other. I immediately found a tenant for the nicer unit while I lived in and worked on the other unit. His monthly rent check almost completely paid for my monthly mortgage, insurance, and property taxes. This free'd up the money I typically paid for housing to save for my next investment property. I believe the BP creators refer to this as "house hacking".

I never asked family for money (that can get hairy). I simply found ways to cut costs, short term discomfort. It's now a mind set, I'm able to save almost 40% of what I make a year now. 

I hope this helps Alex. I've heard Austin is an exciting market. Best of luck!

@Theohicks and myself our offering on a money making dream of a 4-plex here in Cincinnati. It is a bank owned property that has just been listed at an extremely low price to encourage a bidding war, they've succeeded. The "final best bid/offers" are due on Friday. The kicker is they are only accepting offers without utilities for inspection, appraisal or underwriting. My lender will still be able to conduct an appraisal but again without utilities. 

Lucky for us, our lender will still lend the money. However, this is a foreclosed property in the mid-west, it gets cold during the winter. What kind of issues could the bank be hiding or not willing to face, burst pipes? 

If anyone has completed a deal like this or have some advice I would very much appreciate it. The #'s are great, making it a must buy for us. What is the worst that could happen?

Thanks for the response Larry.

Follow up question. Do you need to be part of a brokerage in TX to buy or sell real estate? 

If so, what functions do they facilitate that someone couldn't without them?

Thanks Larry. Great information!

I'm considering taking the appropriate measures to obtain my real estate license here in Ohio. Currently, I'm looking to expand my portfolio from 3 duplex homes to +20 in the next 5 - 7 years. Can the BP members please share some of the advantages they've found utilizing a real estate license instead of working with they're local agent?

Do you recommend joining a company (Sibcy Cline, Century 21). I would only be buying/selling my own investments.

Thank you for the guidance. 

@Theo Hicks

Thank you for your feed back Eric!

Yes, Theo ...  #unplugged

I've always been under the mind set that condos were a bad investment, focusing on single and multi family homes instead. A (1) bedroom condo is going for $44k in a really nice building my friend owns condos in recently. I ran the numbers and the numbers are insane good; $900 with mortgage/insurance/taxes/condo fees, rent $1100 easy = $200 a month/ $2400 a year. Take out 15% for repairs/vacancies ($360/year). With a 25% down payment of $11k that would get me a yearly return on investment of 18.5%!!! Not to mention it's not tough on your debt. to income ratio!

Am I missing something?