All Forum Posts by: Khouri Rice

I am looking for a couple of recommendations for the following services in Oshkosh Wisconsin. Any opinion/experience/referral is greatly appreciated.

Property Management Company (for single and multi unit residential)
Handymen (or women)
Contractors
Local Bank

Thank you

I am going to be purchasing 4-6 homes free and clear (for around 10-20K each) that already have good tenants/leases in place through the middle of next year (2014). I am getting the money loaned to me by a close friend/customer (50K total) who is only looking to make 10% on the loan for a 12 month term (55K payback December 14). My question is....after I take ownership of the property what might be the best way for me to use the properties to take money out of them to pay back the loan, and maybe use some extra to purchase more properties or do work on these to increase rents/value. Each house is appraised at around 45K-60K.

For some reason I have not been able to tag people (I don't get a drop down menu when I put the @ and start to type someone's name) but we are definitely looking to do something along the lines of what Kristopher K did, find a 3 or 4 unit multi, live in it for a couple years and then rinse, repeat, as Ann Bellamy said.

Thank you everyone for giving me some excellent advice, that is the way I was leaning I just wanted to bounce it off of a few more experienced souls. My next question would be how to find distressed multis (besides using the MLS) that I could buy, work on as a good way to get into real estate investing.

Hello BP, I am looking for some advice, I am a little stuck as to what my best course of action for my first purchase might be...(my long term goal is to build a portfolio of buy and hold rentals, while doing a few flips along the way), but I live in MA and real estate prices here are pricey so my options are somewhat limited for my first purchase. Also, I want my first property to be an owner occupied investment, so I can stop paying rent where I am at now, and start building equity. Option 1. Buy a 2 family (in pretty good shape) for $345,000 (will be appraised at around $375,000) in a great town with excellent schools and a great neighborhood, rent the bottom unit out (1200/mo) and pay the difference (which is a little less than I am currently paying in rent) or Buy a foreclosed single family home that needs a lot of work, mostly aesthetics, nothing major (I run a contracting business on the side, so labor is pretty cheap for me)for $300,000, which will most likely be around the upper $400Ks-low $500Ks when I'm done with it. So in this case I would carry the mortgage all on my own but after a year I would have about $125K-150K in equity to really start getting into real estate investing with. I am open to both and realize that I will have to pay a good amount out of pocket for both (typical where I live in MA) but am not sure which is my best route....any advice is much appreciated.

Thanks Mike LaCava, so those SFRs, what sorts of towns are the best to look in? Obviously patience is important in looking for the best deals but how have you found the market to be here lately? I do have a couple of money partners that value/trust what I do and am really looking to make the leap...

Thank you Justin and Brian, look forward to meeting you some time.

Thank you Ann Bellamy for your two cents, I appreciate your opinion and am really just looking as to what my best options are in Eastern Massachusetts, or maybe start thinking about investing in other areas where the numbers are more favorable.

Good Morning, ever since I have stumbled across BP I have spent countless hours reading and learning, and really stoking the fire. This is such an amazing community.

I am looking for some advice on which way to go, and was hoping some people either in my area (Eastern Massachusetts, or in a similar market ($$ wise) might be able to help focus my direction a bit.

A little background about me, I hold a full time day job (and make pretty decent money) which provides me with good health insurance (have an 8 month old at home) and also run a contracting business on the side (which makes pretty decent money as well), but am really looking to begin investing in real estate to provide me with the flexibility/reward for hard work, as I had when I owned another business 10 years ago. I have many years of property management experience which I know will come in handy.

So here is where I need a little advice...

As most of you know the real estate market in Mass is pretty high, and acquiring an owner occupied multifamily (2-4) property will be my first purchase, but then I am not sure whether to purchase another multifamily property (as an investment property), which typically go between 250k-600k or to go the single family rental route (could probably pick up some REOs or properties that need work for around 75k-95k? Maybe look for single family homes in some semi-distressed areas (Lynn, Lawrence, Brockton) that need a little fixing up (I will save huge labor costs by just using the guys who work for my contracting company) and then slowly build a portfolio that way.

One of my main contracting clients has also been really after me about going together on some properties where he basically just puts up the money and waits for his return (whether it be via flip, buy and hold, or cash flow), because he sees how quick, and efficient we are able to turn the work around, and we have built up quite a great relationship.

I know I am getting ahead of myself, because I havent even bought my first multifamily yet, but I like to always have a goal off in the distance that is just a bit further than the next.

Thank you and I look forward to your comments.

I was looking for some advice/comments on a couple of questions that I had...

-I am looking at hopefully purchasing my first owner occupied multifamily this year and was looking at using FHA financing but I have to wait until the end of July, because my bankruptcy (had a business go under) will be at the 2 year discharge mark. I am now worried because of the changes in the insurance being for the life of the loan instead of the first 5 years or until your LTV reaches a certain point. My salary is very good, my credit score is in the low 700s and I am not sure how the bankruptcy will hurt me if I look for a conventional mortgage. Also, the 3.5% down for FHA is very attractive because I would be able to purchase another SFH shortly thereafter to begin renting out. I have around 40k that I am looking to use to start investing this year. I am also thinking of starting an LLC with another partner (relative) where we will begin buying SFHs to rent out. So…my questions are…

-Could I have the LLC purchase the multifamily for me, or even just use my partner to purchase it for me (maybe add my name on the deed, but not the loan, or maybe the loan if its allowed) so I will have the property (where I will owner occupy) before the changes take effect in June (I believe)

-If that is not possible, and because of my bankruptcy, will I have a chance at a conventional mortgage, if the numbers are really bad for going with an FHA with the insurance for the life of the loan

-If I went with the FHA after the changes take effect, and I am stuck paying for the insurance for the life of the loan, will I be able to refinance later (conventionally, but at a potentially higher interest rate) to get rid of the insurance payments?

Any other ideas are more than welcome, thank you!