All Forum Posts by: Michael Lauther

I have an offer on Property in Dayton OH to hold a private mortgage on a property .

property sales price would be $45000 with 15 % down and taxes and insurance escrowed.

What do I need to know and is there a service I can retain to put this together for me . The property is held in MY Self Directed IRA.

@Amaf J. I currently use Equity Trust as the custodian for my self directed IRA. I own rental property inside my IRA because that's where my money was tied up an I did not want to cash out and pay tax.

@Douglas Higa Dayton ohio has a web site google Dayton ohio auditor  or montomgery county ohio auditor.

property info is listed on Montgomery county site

@Heather Ippolito that's good to know.  the first thing you need to do is to determine your goals and time frame.  There are markets that are conducive for fix and flip and others that are better for buy and hold . Each have different characteristics. For instance , I invest in Dayton Ohio where I have acquired a 3 bedroom Property for $20,0000 repair for an additional $10,000  and rent for $800 month . expenses  1400 tax 700 ins 500 repair and capex. 900 property management and 800 vacancy, or a total of $4300 expense and net operating income of $$5,300.  This translates to 17.6% return on cash invested.

the downside is that if I had to sell it would be difficult. the area is low income and with that comes management difficulties. appreciation may be anemic . It does however provide current income and that is my goal . If your goal is not current income but future income and your credit is good , consider buying a more affluent area get a 15 year mortgage and and let your tenant pay for your investment.

Just something to consider , hope this is of value to you

@Heather Ippolito Coming from Port Jefferson NY you need to become fully aware of value in NC markets. What looks like a bargain to a New Yorker may not in reality be a good  buy in NC. Out of state investors need to make sure they have a good support team, and have meaningful relationships with locals. Investors from California and NY often pay too much for investment property and in areas that are not conducive to making a profit. 

As a cash buyer I would expect more than a 1% factor for rent to purchase price. I would need to see at least 1 1/2 % to 2% and assume 50% expenses to start to look at a property.

I have property In the Hamptons , not to far from you and my son Lives in Port Jeff.

Best of luck.

@Chris Wallace welcome to BP , you live in an great area to build rental income with a buy and hold strategy. Best of Luck to you. Make sure you check out both overdue taxes and sewer and water charges when making any offers. Your ability to repair and manage property will give you a leg up on us out of state investors.

@Chris Clothier thanks for the good mention but more importantly thanks for the details provided. The investment described here highlights the importance of having a clear objective and strategy for getting there. Investing in low price real-estate in poor areas does not lend itself for an easy exit. If your need is short term gain or hands off investing, don't do it. I really believe that this turn key investment is doing just what it is designed to do.

@Dennis Regan welcome to BP. I still own property on Long Island but now live in Florida.

I invest out of state to maximize returns on a modest amount of money myself.

You will find valuable information if you take the time here on Bigger pockets.

@Sabrina Brown if you type the @ key and continue to type the name of the person\ou want to address you can click their name when it appears at the bottom of the post reply box.. If you do this the person will be alerted that you have responded

Best of luck to you.

@Sabrina Brown your story is not a new one. Many of us have gone through this and it is precisely at this point so many give up and sell at a loss.  If you can get reasonably competent  property management than I would keep the property. 

I don't know your personal situation but I would take some time to visit the property and make some contacts in the area.

a good start may be to find reputable contacts here on BP. There are some on this post that I have been acquainted with for several years. That may be good place to start.