All Forum Posts by: Johnoson Crutchfield

Need more info.  How many units?  What are you goals as far as returns?  Do you plan to self manage?  Do you have a personal home?

Grant I'm in the same boat.  My market is a bit bigger with about 30k people.  I've hired a part time secretary who handles leases, paying contractors, showings, etc.  For about 40hrs a month I pay her $500.  I then just personally deal with the maintanance calls by farming out the tasks to various contractors.  I'm looking to improve on this.   We use an app called Rentigo and/or Buildium to manage the maintenance calls and payments.  Hope this helps.  Let me know what you decide as I'll reach 50 units soon and I've floated the idea of hiring a fuel time maintenance man.  Is that what you did?

Seems to me like this is irrelevant to an investor. It's a method of funding that can be used if you plan to live in the home for the year. If you don't plan to live in the home, it's not an option for you. If you do, I'm pretty sure how the government feels about whether you stay in the home more than 1 year(the requirement for FHA) is simply not relevant to your goals. #doadeal

In my experience, Section 8 does want you to keep the rent the same until the lease expires.  You can, however, remove the home from Section 8 if you don't like the rent rate.  Section 8 does generally tell you the market rent they will pay for the property, and you get to accept it and put the house on the program or reject it.  Good luck.

Absolutely will lend to your LLC. I'm sure it depends on the bank but I only close in the name of my LLC. I still have to personally guarantee the loans though.

Looks like you are organized and thoroughly tracked your numbers on this one.  If you goal is infinite returns I agree that you will need to buy lower.  If your goal is to invest and raise your cash on cash return then I think this deal is a step in the right direction.  The best thing you did here is gain a ton of experience that you can never unlearn.  The sky is the limit for you now!

Just make sure the earnest money is paid to a title company and that you understand the contract.  Seems like a lot of money to put down on that size house but if it gets your offer looked at then $$$.  Just make sure you protect yourself.  I've put down 5k earnest on a 30k house before but the house was rent ready and would appraise for 60k.  The seller wasn't confident in my ability to close so the higher earnest money helped.  $500 is typical for my market.

Small local banks would be a good choice in this case.  They will lend more on the property.  The rates will be higher and the terms may not be as long but they like to lend on real estate if you have 25-30% down.

If you have 1st lien on the property based on what you have stated the value is, and are confident in the experience of the developer.  This does look good for you.  I would be careful if the developer is not putting any money into the deal.

@James Wise communication is key. I’ll say yes I am willing to manage the properties like a business and not like friendships.