All Forum Posts by: Kevin Phu

Originally posted by @Russ Smith:

I started the old-fashioned way, by making sure my credit/income was good and I applied for loans with banks and mortgage brokers.  I probably did my first five or six deals that way.  The paperwork can be a hassle but having a loan with timely payments helps your credit score and helps you build credibility, not only with bankers but also friends, family, colleagues, etc.

Once you have a proven track record of buying and managing rentals, you can explore the private money options (from those same friends, family, and colleagues).  You can start with private money and skip the banks, but for me, having a proven track record of success really put my private lenders at ease and I was able to get loans at great rates and great terms.  I don't think I've used a traditional bank lender (with the exception of credit lines) for over 10 years, because it feels great creating a win-win for you and your investors, and getting to skip the mountain of paperwork banks require.

Good luck!

Did they look to see how much cash you had on hand as well to see if you qualified?

I currently have a really good credit and a gross 6 figure salary. However, I don't quite have enough cash on hand for a down payment in the market I am interested in. I have an emergency fund but I'm not dipping into that. I'm working on saving more...that has been my big trip up. 

What the term of the current lease? If current tenants are unwilling to pay market rent, you could refuse to renew their lease. I find it odd that they are running potential owner occupants away. What is the owner's relationship to the tenant?

I've been getting interested in the Indy market so I've just been browsing Zillow and bouncing off listing prices to the C rated neighorhoods in a recent blog post I saw. My knowledge of the market is very limited to non existent to be honest. 

I came across this listing that appears to be cashflowing, meets the 1% rule, and is in a C neighborhood (based on the blog post). The listing says that tenant is paying $600. Rentometer shows similar properties in the area rented for around $700. From the pictures, the property looks in decent condition. Would require new interior paint, exterior cleaning, flooring to replace carpet (when home is vacant)

From the surface this looks like a good deal but I am only starting to learn about this market. Could I get some advice or thoughts on what I am overlooking on this property?

https://www.zillow.com/homedetails/2226-N-Goodlet-Ave-Indianapolis-IN-46222/1298043_zpid/?fullpage=true

Is turn key still viable in the Indy market?

I've been researching various markets lately because I want to invest OOS and I just read this blog post about Indy neighborhoods.

https://www.biggerpockets.com/renewsblog/guide-gra...

It got me interested so I went on Zillow just to check out the listings. The areas around Fountain Square/Bates Hendricks/Garfield Park blew me away! The blog post listed these areas as B neighborhoods but there are so many run down properties!

After finding this thread and reading through it, it makes more sense now. @Jay Hinrichs, you mentioned HOOD areas, which areas in the above neighborhoods would you consider hood? 

Is it a safe bet that all the run down homes listed are in those areas? 

@Jeremy Marshall I was considering rentredi as well after I saw it was a pro perk but haven't signed up yet since I discovered cozy, which is free

I'm in town for the week, I'll most likely be able to make it!

Investopedia is a good place to learn different financial terms. Like others have mentioned, they care about your debt aka liabilities aka money you owe people. What you spend at the store or whatever isn't a liability as you didn't owe that money.

Originally posted by @Gita Faust:

@Kevin Phu QuickBooks Online does have a desktop app where you can sync in the data later on. 

Test it out first. Saying that we do not recommend using that feature.

Thanks! How come you don't recommend it?

Check out my hometown of Watertown :) lots of expansion/gentrification going on there. Also has a transfer hub for the T. About a 20-30 bus ride to Boston/Harvard Sq