All Forum Posts by: John Cassel

@Jeff K. I am out of state and looking to invest in MFs in the areas between Charlotte & Raleigh.  I haven't landed my first deal down there yet but @Jesse Marinez has been really helpful.  I recommend reaching out to him for agent purposes and because he has the property management knowledge on top of that.

Hope this helps!

John 

@Mike Main investing out of state can be done and very profitable.  The main key would be having the right team in place around you that you trust and is knowledgeable about the area you are looking to invest in.  They will be able to tell you about any blind spots you have in that market or things that are different from your local market vs the are you are investing in.  I would make sure you have a knowledgeable agent/broker, a lender that has a presence in both areas, reputable property management and reputable contractor.  Most of these you can find through networking with other local investors on BP once you pick your target market.

Once you have your team set up and an understanding of the area/what you are looking for, then make the leap.  Invest where it make sense if where you live doesn't make sense for your current goals.  Hope this helps!

John 

@Stephanie P. do you know of 30 yr fixed products available on commercial properties (excluding large apartment buildings over $1m)?  I have only been able to get 30 yr fixed for 2-4 unit properties.   If there are lending institutions that will do that could you message me their information as I would love to reach out.

Thanks,

John

@Amy Yarnall at least in my area and other areas ive been looking to invest you are generally looking at 25% down as @Stephanie P. said and usually 3, 5 or 7 years fixed on a 20 year amortization.  

As far as qualifying, they take your personal financial situation into account as well as the property and what income it will produce.  I have found that the larger the property the more the financials of the property are important but you (or someone in the deal) will still need to meet the net worth requirements.

Hope this helps!

John

@Dan Morphy I am an investor in York, PA but have properties all around the area.  If you need any help or just have basic questions let me know.  

My recommendation would be try and find a run down duplex and do a BRRRR so you don't have to wait for the cashflow to build up the capital to purchase another. I do all my investing with a full time job so it is definitely possible. Hope this helps!

John

@Henry D West I agree with most of the other responses.  If you don't have kids or dogs where you feel the need to have your own house definitely go the rental property route.  I've had my personal residence for 6 years and I regret buying it when I did.  I could have been light years ahead financially if I house hacked a 3-4 unit property.  Granted, I didn't know anything about Real Estate back then and currently need my house now with a wife, ~2 year old and 2 labs.

If you get into a 3-4 unit property with a low down FHA loan, you will be able to essentially live for free and a large portion of your income can be saved for a down payment on another property. This might not be possible in the heart of Charlotte but if you are willing to live in the outskirts or surrounding areas it should be possible. Also, I would recommend a property that needs work so you can renovate while you live there and then cash out refi down the road to use that equity in another property. If you are at a different place in your life a year down the road you can just move out and rent the unit for cash flow. At that point you've started with a good foundation and it will accelerate your investing business.

My advice to most is get in the game as soon as possible once you know what you are doing.  As I am sure you heard a lot on BP and other sites, the first will be the hardest and youll be hooked from there on.  

Hope this helps!  Let me know if there's anything else I can help with.

@Caleb Heimsoth @Brent Zande @Dutch Langley @Karl Swain @Clarkston Hines,

I will be flying down to Charlotte & visiting Raleigh on the weekend of June 29th-30th.  If any of you are available that weekend and still want to meet up.  Feel free to message me

@Sarah Griffiths I am a multifamily investor looking to move into larger properties, some having over $1m price range.  Is it focused more on SFHs and flipping or is there a benefit for multifamily properties as well.

Thanks,

John

@Harry Williams with it being 20 units you may need to use offsite 3rd party management unless it is in an expensive area with high rents.  In that case you might be able to have management on site.  If you are going with offsite I would budget around 10% just like @Nathan Gesner said.  

In regards to maintenance, I agree with @John Warren, we would definitely need more information on the business plan for the property and its current condition.  I generally budget 10% vacancy, 10% management and then anywhere from 12-20% on Maint/Cap Ex combined based on the particular property.  It is better to be conservative with your numbers and then be surprised when they come in lower than expected.  

Hope this helps!

For my rentals I charge a $250 nonrefundable pet fee and then an additional $25/month in rent.  The couple tenants I have with pets don't complain about it and we haven't had any large issues to date.

Hope this helps!