All Forum Posts by: Account Closed

Shawn Ackerman Are you using a portfolio lender? How do I get a mortgage for such a low amount?

6 months?! Wow I feel blessed. I got lucky with mine, he was the first one I called. I'm looking to buy in Ohio next. On the hunt for a good manager.

It's not "far fetched." You're only 21 and you've already started. That's awesome! Just keep working hard, stay out of consumer debt and SAVE SAVE SAVE.

I am gearing up to buy an out of state rental. Looking in all the typical Midwest markets. How much do you more experienced out of state investors spend on a rehab? Do you just buy properties that need cosmetic work, or do you put in new kitchens and bathrooms etc?

This is how I got started. Except I did it with a duplex. A lot of people start this way. I've since moved out and refinanced into a conventional loan to drop the mortgage insurance. Now have a solid cashflow coming in. One mistake I made was not getting a realtor that works with investors. A realtor that sells to retail buyers doesn't necessarily understand what you are looking for. Find an agent that is an investor themselves, or one that works mostly with investors. They can help you get a solid deal from a return standpoint and also give you advice along the way. BiggerPockets is the perfect place to find one. Good luck!

I'm a newbie with only one duplex as of now, but I did inherit a section 8 tenant when I bought it, so I guess I can give my 0.02 cents. The best thing was the guaranteed rent. Also, the price I could charge was based only on comps in the area and the square footage of the unit. It allowed me to charge more for the unit than I could have to a conventional tenant (unit was in bad shape when I bought it) But that's where the good parts ended. Tenant paid on time but was the typical section 8 stereotype. Husband in and out of jail, drug addict son that was always there with his low life friends. The worst thing is that she scared away any tenant my property manager placed in the other unit. No decent tenant would live next to her, so I had constant turnover on the other side. Also, the section 8 system is on the tenant's side. They are there to protect them from you the "greedy landlord." They made me fix cosmetic things like paint on the backdoor, and scuffs on the kitchen linoleum. Thought it was crazy that the taxpayers paid their rent but they were "entitled" to scuff free kitchen floors. I think section 8 can be great, but only if you do it correctly. My situation was not good because I inherited the tenant and my property manager does not specialize in section 8. He's a great manager it's just not his niche. If you have a manager that knows what he/she is doing, and the property is in good shape I say it can be great. If you structure the deal to leave enough margin for more than average maintenance costs, and you get a manager that specializes in section 8 I'd say it can be very profitable.

I've been researching markets to buy out of state, and I have pretty much settled on Ohio. My target demographic is C class neighborhoods. Not a war zone where everyone is section 8, but not a "nice" neighborhood either. Looking at single family homes in the $30,000 to $50,000 range. I've heard it can be difficult to find a manager willing to manage lower end rentals because it is not worth their time. What price ranges do you guys deal with? Also what kind of rent could I expect to get in this price range. I've been looking at Cleveland, Cincinnati, Columbus, and Dayton.

When I bought my duplex I inherited a section 8 tenant. The unit was renting for well below market value. Market rent $1400, she was paying $950. I kept her for the remaining 8 months of the lease then did not renew so I could remodel and charge market rent. My property manager handled everything. The tenant refused to leave, threatened to sue. It was a huge battle because section 8 is always on the side of the tenant. At least in ultra liberal Seattle where the property is located. They understood the section 8 system. It's possible to manage from out of state. But for rookies like me I say get a PM.