All Forum Posts by: Michael V

@Michael Swan has some good insight above.  Euclid does have it's pockets as does every area.  North of the highway is good.  North of Lakeshore is even more desirable.  As you head west you may experience more issues when managing.  Lake county you will pay a little more but the neighborhoods are more sought-after so depending on the area you can get more in rent.  As you go further east to Painesville it is fairly comparable to parts of Euclid.  All great areas to invest and get high returns. 

Huntington will loan as little as $50k.  If you call around to lenders they are a wealth of information and can give you some good tips.  Some will even refer you to other lenders they know who can get specific deals done if their own hands are tied.

I buy them in the $30,000 range and don't go above $40,000 with the all in total cost after rehab. 2 bdrm 1 ba gets $750 and 3 bdrm 2 ba gets $925. Netting around $12,000/yr between the two.

Again thanks for all the replies. After some digging I've discovered I can take out a second line of equity on my newest rental but since it hasn't been 12 months I can only pull out 75% of the purchase price. And as a good investor, I bought it under valued. I also believe I can pull cash out of my residence at the market value since I've lived here for a year. Again bought under valued. So this might give me more money.

The issue I'm having in my mind is that after paying the debt service, taxes, and insurance plus other misc things I will probably only be making $200-$300 per month. It's not bad but my goal is to have financial freedom one day. I am still a beginner and may sound like an impatient child but even after getting 3 rentals it seems like I am still so far away from cash flowing any real money. How many does it take? And how do I continue investing after I pull out all the cash from my current properties? What are some good strategies people are using that can be repeated over and over until you are truly making some real money?

Dawn and Mike, Thank you for your quick responses. The first house I paid for with all cash. I quickly rented it and had it about 1 year before I started looking for the next one. I was able to pull out a line of equity on the first house to finance a large portion of my second house. I paid cash for the remainder and the rehab. I have had the 2nd house for about 3 months now. I see the signs that the market is changing and want to get one more great deal before that happens. I also would love to get into a multi-family or self-storage investment but just don't have the funds to do so right now.

I will need to find out exactly what these investors are looking for next time we talk. I would prefer if they were just looking for a guaranteed return but I guess I can't be picky at this stage.

I appreciate you explaining the scenarios to me Mike. That helped and painted a clearer picture for me. You mentioned 10% and 3pts for each deal... expand on this, why did you pick this? Is there a standard range for these types of deals that people operate within?

Also, is there a way for an investor to get the loan and then I come in and assume it? This sounds like too much risk for an investor but has it been done?

Any other ideas?

Thanks guys!

After purchasing 2 rental houses in two years I've learned more than I could have ever imagined. This is clearly the way to create wealth and I am in love with it. I now find myself in a position where I have spent all my "investing money" on the first 2 properties and still have the desire to purchase more. I don't want to wait for the properties to produce enough cash for another down payment. I want to buy sooner, and I have the feeling I will keep wanting to buy at a faster rate as I get better at this. That's why I need to figure out another way to invest without having all the cash up front. I have a handful of contacts that would invest with me, I'm just not sure how to set up the terms and structure this type of deal. What are some ways that people have gone about this and have been successful?