All Forum Posts by: Joshua Smith

@Mark Vejnar - I haven't spoken to a government official; but I am aware of development project planned for the area over the next 3 years - and there's a lot of it. I think I'll go FHA for this round. Foreign financing is an interesting concept. Thanks!

@Upen Patel - Thanks for the confirmation. I'll follow up in a PM.

My biggest concern is making sure that I locate a willing general contractor/consultant for the 203K. I've heard of some horror stories with some less-than-qualified 203K consultants. Will keep everyone updated on progress.

Thanks!

Thanks all!

@Thomas Franklin - My brother also got an FHA for a 4 unit and had that type of exposure. Hedging with a strong insurance policy for a year and the refinancing after a year would be the best scenario here for liability; assuming enough equity is available, one can refinance into a conventional 30 year loan with an LLC after a year.

@Paul Timmins - Thanks for the recommendations. There are almost never any HUD homes on the market in DC. I'm looking here as much as I can: https://www.hudhomestore.com/Home/Index.aspx

@Andrew Nevins - Thanks for the recs. Finding the right property is key. There are many 4 units in terrible shape in these neighborhoods with owners who are feeling opportunistic and putting their properties on the market for $575-600K. Not basing the price on operations as many of these properties are half vacant and/or dealing with evictions. That's why I'm trying to go off-market as much as I can here.

@Russell Brazil - Yes - completely agree. And again, that why I am trying to go off market as much as I can. Thanks for the advice on bidding strategy. One question I did have is, and you might not know the answer to this, but, let's say I go the hard money/private money route to acquire a property, can I then refinance with an 203K FHA? My guess is not - as I would own the property at that point.

Hi guys - I have a big goal: To purchase and renovate a four unit property in the Trinidad or Kingman Park neighborhoods of DC with a FHA 203K loan, rent out three units for a year while I live in one, and then convert to condos and sell or refinance to move on to the next project.

All signs are there that these neighborhoods are only going up; and the inventory is in poor shape, ready to be renovated. Deals can be found in spite of the aggressive pricing.

I've been talking with as many investors, property managers and agents in DC. I've also been going door to door and talking with as many neighbors as I can in these neighborhoods to learn about them and to identify any off market properties. So far I have a few great leads. 

Any way I look at the numbers, converting to condos makes a ton of sense. At this point I'm looking for anyone just to talk to more about this goal, to give me some pointers, just to strategize. Anyway - that's my goal and I'm sticking to it! 

Hi all - My brother and I are looking for 5-10 unit multifamilies in Columbus - preferably on the south side on the western side of Parsons Ave, but willing to entertain some on the eastern side. Also looking at Franklinton. We are looking to get connected with some wholesalers in the Columbus area that deal with multifamilies. Please feel free to connect. Thanks!

@Peter Lohmann Got it. I've been looking into the Southern Orchards neighborhood. It seems like there is a decent amount of investment going on around the Parsons Ave. Corridor, with a new library and hospital close by. Are you confident in that area - Southern Orchards?

@Tyler Durbin @Kevin Noesner @John Horner I've been looking in German Village and have found some good opportunities. Where do you guys think are the best targets for the south side? And why do you think it will be hot?

@Peter Lohmann what is the logic behind not investing in anything under $40K a unit right now? Also, even if there is a good deal to be had, do you not have confidence in Columbus's near-term economic future?

I've heard that most credit unions offer 100% financing for primary residence purchases, not investment properties. Is this incorrect?

Hey Tyrone - just out of curiosity, why Indianapolis? Have you considered any other markets?

Are you mostly interested in cash flow or appreciation?

Thanks guys - that was very helpful. Pretty much confirmed what I suspected. Yes, @Carson Swezy I could try to find a cashflowing apartment in DC or SFR in VA to offset rental expenses; but, what I really like about multifamilies is that there is less vacancy risk (it's not all or nothing). But I'm willing to entertain some good deals for SFRs. Any suggestions for where to start and where the "path of progress" might be moving around the DMV? Is the Dulles metro play tapped out by now?

I am considering a number of other markets such as Austin, Kansas City and Indianapolis. The econ research I've done so far seems to point to appreciation in those markets in the next few years and cash flowing multifamilies seem to be much more affordable.