All Forum Posts by: Maurice Smith

im looking buy another property, not even 5 months sense i closed on my last. I have Been doing research certain markets, and seems like some good  opportunities in the Indianapolis  area. Im not sure if im getting into  late? seems to be a sellers market in that area, but still a couple of  mfh deals making over 12% annually ( in the 46201 area) Seems to good to be true. Really want to buy in the carmel area but not finding anything worth buying that meets 1%.   Need some advice  from anybody willing to give it. should i slow my roll and wait a little  longer, or take advantage of the low prices and interest rates while i still have the opportunity ?

What are your thoughts

 you must not live in California lol 

how many doors do you currently own? 

lol why would  you do that?  keep your cash flow. owning in California has its negatives. its not a landlord friendly state keep that in kind. can take half a year to get your tenants evicted in some cases 

hire a property manager or use appfolio. stop chasing rents and get your system automated. In regrades to your section 8 question, i was considering the same thing.I have a 4 unit and wanted to make 1 of the units section 8? Reason why, and please correct me if im wrong.  

1. on time rents

2. market rents (sometimes a little bit higher then market)

3. I read they give section 8 tenants utility vouchers? so you might be able to transfer some utilities into the tenants name ( like water) and have section 8 pay for it if you have a mfh?

4. lower turn overs 

section 8 is hard to get and takes years of waiting to get a voucher. in some cases 8+ years. These people on section 8 know that, and will not do anything to get their voucher revoked. so as long as you do a good screening you shouldn't have any problem tenants who destroy the place. in some cases section 8 tenants are better then non section 8. 

 Yes sir , don’t want to have you go through the same headache as me .. good luck to you 

took me about 4 months for me to get approved for the loan on  my 4 plex after my offer was accepted. thankfully the seller was patience enough to wait on me 

 main reason was because my funds were not seasoned and no "gift funds" allowed for investment property, even though it was my money. so i had to let my money sit in my account for 2 months. on top of that i had to have 6 months reserves in my account to prove i could cover the mortgage. my debt to income was another issue. I had to pay all my debt down except my car loan to get approved . Did i mention this was my first time buying  lol 

if the 4 plex is in the same state as you, why not just move into the 4 plex and rent out the first property?  save on your down payment of 25% , this will also increase roi because your putting less money and lenders will consider it a non investment property, instead it will be owner occupied allowing you to get a better interest rate as well, and will make it easier to get approved. or get approved some how as a investment.   put down 25%  so your payments will be lower you wont have to pay any lender insurance  and you will have more money into the house then the amount that your borrowing potentially  giving your more equity.  

as long as you owned your rentals for 2 years you can use that towards your income. You should see about that 

 lol defiantly not, i said EXTRA $200 a month in cash flow. 1%  i was referring to is the  purchase price. so if the property is 300k. then $3000 a month in rent should be the goal. according to the 1% rule. if your getting 2% then that real good. in what market?