All Forum Posts by: Marshall C. Call II

Hi Kerron,

I invest in the Warren Ohio market as well. I get pretty good returns and I have had very good luck with tenants with solid screening and income threshold minimums. I'm relatively new as well, 2 years so far with 3 total properties and I have 2 offers out now. You can definitely get cash flow but appreciation isn't great. If you're in this for supplimental income or to try to replace your W-2 income, it's a great place to invest! HMU if you need anything as I live close to Warren as well.

Well I own one on Union Street, not far from that property. I'm getting the 2% rule on that investment. If you can get it rehabbed for a decent price, why not? If you decide against it, I'd be interested into looking at it.

Hi Beth,

I invest in Warren. Which neighborhood is this house in? I have houses in 2 different neighborhoods and I don't have issues but I know there are worse neighborhoods than the ones I rent in. Some of these neighborhoods are on the cusp of rising up and Warren, in general, seems to be improving.

Bob, the 2br/1ba houses in this area rent for $500-$600. These homes are close to being taken by the county for back taxes. My brother lives in this subdivision and rents a 2 bed 1 bath for $500 and I have a home on the same street, larger, that I rent for $780 so I know what the rents are. I do my own renovations and did one on the very street these houses are on. It's a lower income area but definitely not a war zone, I am perfectly comfortable having my daughter go there alone. I'm not sure what makes you think I don't have money but maybe just scroll on by if you're not going to answer the question?

Hi folks! I have a little money to buy my next buy and hold. There are a few houses on a street where I already have a house. There is a possibility I can get 3 houses for under 10k each but they aren't for sale and I would have to direct market to the owners. I don't know how long it would take and I'm not even sure I would get a response so I could be wasting time. These houses are uninhabitable at the moment. Alternatively I could buy 1 house that requires less rehab. If I buy the 3 houses, I can rehab 1 of them and the other 2 would have to sit until I could afford to rehab them, probably both by the end of next year. These houses would rent for around $500. If I buy a nicer house, I would have to finance but could rehab for under 10k and have it rent ready in a couple months. Probably around $950 in rent and this house will appreciate faster. I'm not even sure the first 3 would appreciate. It's very attractive to me to have 3 houses that would all be free and clear in a year and a half but it would take much longer to get my money back. Any thoughts would be greatly appreciated!

No it's a national bank

Hi Dan and thanks for commenting.

I agree 8% is too high but I still get decent cash flow at that rate. The first mortgage is 4.625% so that one is better still.

I will certainly look into DSCR loans

Credit score is 780

I wouldn't mind doing a cash out refi. I hadn't thought about that. I'd have to look into how much equity I have.

I already took a 401K loan for the rehab on the last property, and I'm only allowed 1 loan at a time in my current 401K. It has about 4 more years for payback.

The saving is something I am working on. I have about 10K but that's not going to get me anything right now. It's building slowly but surely, and I definitely want to keep 5k or so as an emergency fund.

I have thought about renting out my current house or selling it outright and house hacking. It's paid off and I have a lot of storage for the stuff I need for rehabbing so I would need to find a place that has enough storage for all that.

REALLY appreciate the feedback and I will look into equity on the current properties and DSCR loans.

Hi folks. Sorta new to investing and sorta new to BP. Does anyone have advice on financing? I am 2 conventional bank loans in and I don't mind doing it this way. The problem is the 25% down payment. Even on a $30k house, I need $7500 plus escrow and $10k-$20k for rehab. The bank is charging points as well just to get 8+% on the loan. Any thoughts on more creative financing other than taking money out of my personal house? I don't know any private lenders and hard money makes me nervous since I'm a buy and hold guy and the payback isn't as cut and dry as it is on a fix and flip. Appreciate any input and I'm glad to be part of the BP community!

Hi Steve,

The Dave Ramsey way of doing things is to write out a new budget every month, sell off anything you don't need or use, get yourself a small emergency fund. Then, if you have any debt, start paying it off quickly. Once your debt is paid down, start saving for a larger emergency fund THEN start investing. He's a stock market guy but the practice works just as ell for RE. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $38,000
Cash invested: $25,000

2 story 3 on 1-1/2 with an unfinished basement and 2 car garage.

What made you interested in investing in this type of deal?

My first investment. Just testing the waters.

How did you find this deal and how did you negotiate it?

The deal was on the MLS for $49900. I simply bid low and negotiated up based on rental history of the house.

How did you finance this deal?

Bank

How did you add value to the deal?

Replaced EVERYTHING. Moved the laundry to the first floor from the basement, new cabinets, new deck, new siding.

What was the outcome?

It's been rented all but about 3 weeks since I finished it. Mortgage is 1/3 of rent, emergency funds are about 1/3 of rent, saving the last 1/3 for the next investment.

Lessons learned? Challenges?

When you see water spots, dig deeper!