All Forum Posts by: Kwaku Farkye

@Tyler Simon Some things you can show lenders to improve your approval odds for an FHA loan if you have a high debt to income ratio:

- Show you have extra money saved up in the bank (i.e. cash reserves) for mortgage payments
- Once you start your new job, show that you'll be able to save money each month after paying your mortgage and monthly bills
- Show that the monthly payments of the loan you're applying for isn't much more than your current rent/housing expenses

Also, just a heads up that putting less money down doesn't necessarily increase cash on cash return, since higher monthly P&I expenses, plus mortgage insurance (on a downpayment of less than 20%) decreases monthly cash flow.

One thing they mention in the podcast is that they manually send each message, and that helps them avoid regulation. By clicking send for each message that prevents it from being considered a text blast and I guess makes it personal instead of commercial.. 

Either way I think it's a good strategy and I'm thinking about building a system like this as well

So I'm wondering what strategies there are for determining the class of a neighborhood (i.e. labeling certain neighborhoods as A-class, B-class, C-class, warzone, etc..)?

For starters, you'd want to consider the location and general age and price of properties in the neighborhood, ratings of nearby schools, amount of crime, vacancy (homeownership and rental), plus grocery stores and shopping centers nearby.

A lot of this info can be found online (e.g. school ratings, crime maps, property age, grocery stores and shopping centers), while some of it can be determined by driving the neighborhood and talking to folks that live in the neighborhood.

Asking police about a neighborhood might give you some objective info on crime, talking to property managers might give you info on vacancy and rent prices, and talking to a real estate agent might give you info on property age and price. 

Are the other professionals (or strategies) that could provide insight into classifying a neighborhood?

@Darius Kellar awesome insight, much appreciated. I think investing in markets with a good university is smart, and OU seems to be making positive moves in the right direction. 

@Jon Lee I will check out that link for events and reach out if I have any questions, thanks for offering your help!

@Louis Davis definitely so, appreciate the motivation, gotta act now!

Thanks @Dylan Tanaka I'll be sure to check that out. Might be able to make the event in July

@Louis Davis I appreciate the insight. Understanding the market is a huge factor. 

I've analyzed some buy and hold properties via the MLS that look like good deals, but since the LV market is so hot, I'm questioning whether I'm missing something key in my evaluation.

My next step is to check out the area myself, plus get in touch with property managers, the police dept, and contractors, so they can tell me more about rent, crime, and rehab estimates in those specific areas.

I've heard dealing with contractors can be a huge pain, but maybe I can build mutually beneficial relationships with them by adding value to their business in some way.

@Matt Hurley @Keyonte Summers thanks for the info! I'll definitely check out that facebook group

Hello,

I'm just getting into real estate investing and looking into the Detroit metro market. Anyone here investing in Auburn Hills, Southfield, Ferndale, or Warren? What are your experiences with investing in these cities? Based on some research it seems like there's good potential for buy and hold cashflow properties there.

@Louis Davis thanks for the advice. At this point I can definitely help with technical/software stuff, but I wanted to learn if LV is a solid market/community for me to commit to. Seems like I should tread lightly.