All Forum Posts by: Jonathan Chan

Hello, new here. Currently waiting on hearing back on my appraisal for my first house I'm getting out of.
I want to invest my profit into 1 or 2 multi family duplexes.

I am curious at what income level based on rental cash flow i would need to still qualify for a loan. I have potential job opportunities else where but will purchase a duplex before thinking of leaving the area. I know once I leave my job I will no longer have that work history and steady income the bank expects to see. So at what point can I use my rent as "steady income?" I ask this because once I have enough for another down payment I will want to scale to more properties. 

I am in the Indianapolis Metro area. I can currently find multiple duplexes under 300k. I plan to rent by the room. And possibly convert extra space(dinning room ect) in to bedrooms. 
With the high cost of rent in Indianapolis (1000-1500 for a 1 bed room studio) i believe I will have allot of cash flow even with the current interest rates. I personally know several people paying $800-1000 for a single bedroom. And in 2016 I myself paid 750 to stay in a bedroom in a 4 bed house that was full. Based on the area,my rent alone was covering the mortgage, let alone the other 3 tenants. Ever since i lived in that house iv been dreaming of doing the same but it wasn't in the cards yet.

Also if there is any one here who invest in Indianapolis please message me!

I have been looking and found a nice 15 unit building in a solid neighborhood! Problem is I haven't done any deals yet. Going over how could I get this done? Any ideas?! Net income is around $120kyr. Rents are about $18k monthly. Does this seem doable?

Just getting into fix and flipping, so bare with me. I keep seeing LendingOne on Facebook and Google, but they require appraisals. How will appraisals work if the property is not even close to move-in ready?! I thought appraisals have strict guidelines. 

I see Capital Ton doesn't require appraisals for fix and flips, is this real? Has anyone worked with either company? What's a desktop valuation?

Hi Jonathan. What are you looking to accomplish? We work in VA.

@Brandon Morgan 

An LLC isn't always necessary, but it can be a smart move for liability protection and separating personal and business finances. If you're just starting out or doing small-scale deals, it might not be urgent. But as you grow, it's worth it for peace of mind. Always good to chat with a CPA or attorney to see what fits your situation!

I personally would put my properties in a LLC.  This gives me legal protection as well as tax deductions.  @Chris Seveney makes a good point that you need to consider if the loan and insurance is in your personal name or your LLC.  You don't want to give the insurance company any reason not to pay out on a claim.  You defiantly want legal protection as stated by @Max Wilhite

@Jonathan Bock is correct about keeping it simple.  It is easier said than done.  @Bill Hampton it seems we are both in Georgia.  I look forward to connecting.

@River Sava is correct that a LLC makes it easier to scale. Investment bankers are usually looking to lend to a LLC vs an individual.

@Jonathan Chan how much in insurance to you recommend for 1 rental?  How do you see this coverage increasing as he scales?

@Sarah Brown how many properties do you put in each LLC?  How do you determine when to create another LLC?

@Ashish Acharya I have found that I get better terms for personal loans. However, it is a lot more complicated to get a loan in my personal name vs my LLC. DSCR loans are pretty straight forward for my LLC. I have to provide 5 times the documentation to get a house in my personal name.