All Forum Posts by: John Ferrughelli

I have purchased 2 properties thus far which have been single family row homes. Both of which I put down 20 percent which is the standard but minimum was 15 percent.

For properties with 2+ units the banks want 25 percent minimum unless you are occupying the property. My lender says there’s no way around this regulation.

Does anyone know of ways to purchases 2+ unit properties with a 10 percent or less down payment? This is with NOT being an owner occupant.

1 Vote

Originally posted by @Jim D.:

I self manage three of my properties from out of state and have had no issues. However, they are single family homes in "A" neighborhoods with great tenants. These are houses that rent for over $2500/month, are in great condition, and almost never have turnover, so paying a property manager 8-10% of the rent just seems unnecessary. When there's a maintenance issue, a tenant calls or texts me with a photo and I send the right contractor over to take care of it. Easy. I also have a handyman I trust who does a walk through and basic maintenance checklist of each property every quarter.

I wouldn't try the same with my multifamily properties in lower quality neighborhoods, that would be very difficult.

In this situation, it's not necessary to have a PM. Sometimes you get lucky and you have great tenants who treat the property like it's their own. Also helps to be in an A neighborhood.

The only way you'd be able to self manage while out of state is to have tenants, maintenance contractors/handyman who you could trust with your grandmother.

You definitely have the best scenario working in your favor, to which I say Salud!

In Jeff J's case, it might not be the same deal though.

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Originally posted by @Patrick Philip:

Originally posted by @John Ferrughelli:

Commercial property is a bad place to be in. Like several posters mentioned above, there is a constant revolving door of businesses in and out because they fail or can no longer pay their rent and they remain vacant for months, sometimes years. Also, a lot of freelancers and contractors operate from home because we’re heading into a remote and mobile economy

I leased an office space unit in a suite of 6 different units for 2 years and in that time I saw those units change hands 7 different times. One of the units was vacant the entire time I was there.

Better off flipping residential. My 0.02.

The only reason I might be attracted to commercial is the size of the deal. If I could flip a $5 million hotel into a $7 million hotel or something like that. But I've never actually been able to run numbers on a potential deal because I haven't found any.

I'm going to call large commercial brokerages just for fun even if I don't end up buying anything they send me.

Yes i understand your mindset there. The larger the size of the deal, the more cash. Those deals are extremely hard to find and usually only can come by extremely wealthy people who have the ability to throw down 500,000 to 1 million in cash and not even realize it’s gone. That’s the difficult and unfortunate part about it. The little guy is completely squeezed out.

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Originally posted by @Chris Seveney:

Zachary Stoll
Paying $285k for $2,750 a month in rent is not great - only play is banking on appreciation which is speculating. Me personally I would see that as being over leveraged. Others may differ but I am more conservative and you are banking on a lot of things to go right to make this work.

@Chris Seveney

I’m also new here in the investing game - my question is why is $2,750 a month in rent for 285K not a good play? Not disagreeing or challenging - just simply asking because I might be missing a key part of this. I ran the numbers and even with no money down, Zachary would still come out on top.

Just wondering why you think it’s a bad investment.

1 Vote

I leased an office space unit in a suite of 6 different units for 2 years and in that time I saw those units change hands 7 different times. One of the units was vacant the entire time I was there.

Better off flipping residential. My 0.02.

0 Votes

All Forum Posts by: John Ferrughelli

John Ferrughelli has started 1 posts and replied 5 times.

Post: 10 percent downpayment on investments

Post: Self managing out of state multi family?

Post: Finding distressed commercial properties in a healthy economy?

Post: Am I Borrowing Too Much?

Post: Finding distressed commercial properties in a healthy economy?