All Forum Posts by: Muhammad Amawi

Joel hits it spot on here. House hacking a multi-family is typically what I've come across most often for people looking to take advantage of the 3.5% down FHA loan for investment purposes.

Hey Henry,

I can't speak much on the Toledo market personally, however not too much farther away from Toledo and only a 6.5 hour drive from Chicago you have the Cleveland market which is very hot right now and filled with plenty of opportunity. I've worked with plenty in state and out of state investors here with properties that cashflow pretty well.

Hey BP!

I was curious to know what are some of the strategies and struggles that you use and face when it comes to financing your properties? Whether it's hard money, private money or the traditional lending route; what are some things that you have  experienced that you could pass along to help the next person?

Hey BP!

Seeing this is mainly an investor forum, I thought I'd shed some light on what is probably the most utilized investor product: DSCR.

DSCR, for those that don't know, stands for Debt Service Cover Ratio. What it does is it allows you to qualify based off of your FICO and what the property brings back in income.

So if a DSCR qualification had to be greater than or equal to 1 (1:1 ratio) that would mean if the mortgage you qualify for is $1,000 a month, then the property would have to bring back $1,000 in rental income.

DSCR works for cash out refi's, rate and term refi's as well as purchases. The property can be leased or unleased and there are opportunities to use this in a personal name or LLC.

Hope this helps!

Hey Zack,

Congrats on getting started with your REI journey.

Along the way, I'd be more than happy to help with any lending questions you may have to support you on your journey.

Please do not hesitate to reach out. Looking forward to connecting!

Hey Anton,

Welcome to the BP community!

I'm a lender native to the Cleveland area and have great connections to realtors that work with investors like yourself.

When investing in Cleveland, I recommend looking in the westside areas: Edgewater, ohio city, tremont, gordon square, lakewood and westpark are all great areas to start.

2-4 unit may be tough to find in the 100-150k range but not impossible. 

I would recommend getting a pre-approval done to provide to the realtor before speaking with them so you can hit the ground running.

Looking forward to connecting!

Hey Danny,

Welcome to the BP community!

If you aren't confident that you could set it up correctly, I would recommend using a Real Estate Attorney. Especially if it will be your first time setting one up. 

Hey Shankar,

Welcome to the BP community!

If you don't currently own a primary residence I would recommend looking to get started with a 2-4 unit House Hack. If you currently own a primary residence I would look to get a preapproval done for an investment loan and connecting with an investor friendly agent

Hey Kyle,

Welcome to the BP community!

Great areas to look for while doing a STR would be Ohio City, Tremont, Edgewater, Lakewood and Gordon Square. These are all areas located on the westside of Cleveland.

If you don't have a pre-approval lined up that could be a reason the realtors are not following up with you. Do you know what type of financing you'll be going with? There's a few realtors that I work with in this area that are very investor friendly that I could make the introduction to you for.

Looking forward to connecting!

Hey Alan,

I'm a lender here in Ohio and specialize in working with investors like yourself. Why don't we find a time where we can talk so I can better understand your unique situation.

From the jump, refinancing into a DSCR sounds like it would make the most sense since you would be qualified based of the rental income and your credit.

Looking forward to connecting with you.