All Forum Posts by: Joshua Janus

10% does seem a little high right now. Have you checked websites with private money? Make sure to set up a great proposal for your deal that way they know your serious and can execute. 

You are going to get the best return on the investment by structuring the deal where the hard money is simply a bank, and they have no interest in the property. Even if the interest rate is somewhat high for the money, it can still be worth executing if you found a really good BRRRR as you said.

Where are you looking to invest at?

Searching opencorporates.com has been the most successful for me. 

Do you have good contractors in the area that you trust and know will do good work? Have you compared the rents for the smaller multiple units versus the single family rent? Is there enough parking to fill that demand? Would there be a separate entrance for each unit, or is that shared? Try to avoid any form of a functional obsolescence. 

Compare the price you would be paying to the gross monthly rent and see if the property breaks the One Percent Rule. This is just a general guide and plenty of deals are still worth going after if they fall short of it. How has the rent rates and appreciation been in the area? Population growth? Job growth? Is the local government investing a substantial amount of capital into the infrastructure in some way to improve the area? 
Questions like these will help you mitigate risk and see growth from externalities outside of the individual performance of the home which are factors that have a dominating impact on the market value over time. 

You are going to get the best return on the investment by structuring the deal where the hard money is simply a bank, and they have no interest in the property. Even if the interest rate is somewhat high for the money, it can still be worth executing if you found a really good BRRRR for an example.

There may be down payment assistance programs in your area. Check with your lender to see if you qualify for any. I am in Columbus, Ohio and there are ones such as the CHAMP loan. 

If you run your numbers through a worst case scenario and the deal still makes sense, then it's obviously a no brainer. What other metrics are you using to compare multi family properties? 

People always need a place to live right? As long as that is the case, it will go up in value over time as the population growth is generally faster than the new and newly restored building rate.