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All Forum Posts by: Noah Chappell

Noah Chappell has started 3 posts and replied 248 times.

Post: Short on money for FHA Downpayment

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

I would encourage you to be creative & jump in whenever possible. There are many very successful ppl who've spoken about taking risks when starting out. Although they won't advocate putting the DP on credit, etc, they admit it's what got them to where they are today. So I'd say jump in, but cautiously. 

FHA is picky about what they accept for a DP. They do allow you to use a 401k loan. You could negotiate to have seller pay closing costs, or increase sales price by amount of closing costs to finance these.. There are multiple ways to bring $0 to closing for an FHA.

Where I am in Hennepin County there were grants last yr offering to cover the entire DP, & multiple other programs beyond FHA offering low DP options, & with very low PMI. I'd research your area. There probably are incentives, especially if the city has a revitalization plan.

Good luck! 

Post: Basics steps of real estate

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

I'd say educate yourself as much as possible though books, podcasts, this site, YouTube, ect. Then decide on longterm goal, which for you seems to be multi fam as you've stated. Then look for a good deal, like a cosmetically run down duplex in a medium to good area, get into it cheap, do the rehab yourself or hire out to handyman when its above your head, rent, and repeat. I think important thing is to challenge yourself without getting in over your head, while sustainably advancing towards your goal (ie don't blow 400k on something that cash flows 3k/month & then be out of the game for yrs). Good luck! 

Post: Is a single family home a good way to start investing ?

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

Many ppl advocate jumping in which is invaluable, but I'd suggest practicing what you'd like to specialize in from the very beginning, instead of getting in at any level. If you'd like to own SFH's & build a prop management company, buy some & self manage. If however you're planning to do multi fam on any scalable level, possibly syndicating one day, I'd suggest getting in on at least a duplex & focusing on your systems with good managers, etc, from the very beginning, as this will allow you to scale. And of course, read as much as is humanly possible!

Post: Charging for water and heat

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

Utilities is always a tough question, as how you handle them can make big difference in your bottom line, & is influenced by local laws & what the market will support. 

Where I own in St Paul, MN LL generally pays water/sewer/garbage, and tenants can pay gas/electric if your building is sub metered. Otherwise it's illegal to put shared utilities in tenants' names, and you have to eat the cost, or try to bill back using some RUBS system, which can be tough depending on your tenant demographic. 

Here you'll have to pay the gas yourself, unless you want to invest in sub metering, which you could do if the WH/boiler are at end of life. 

Otherwise, I think your main issues is under market rents, which you should work to raise to market. 

My 2 cents! 

Post: Where are the young investors?!

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

I'm 32 and just moved to Minneapolis from Boston to invest. Really, I felt I had the savings and education to jump in just a few months ago. I work in medicine, so I have a fair salary. My first property was a duplex I bought with seller financing, rehabbed, and refinanced into a commercial loan in an LLC. Now I have a 4 plex under contract I'll house hack with an FHA loan. Comparing the 2, the FHA was wayyyyyyy easier. My goal is to acquire a modest 6 units a year, so in another year I'll probably house hack again, and probably try a BRRRR since all my money is gone now!

Post: REI Social: Venn Brewing -South Mpls Real Estate Investing Meetup

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

Hey, does anyone know when the next S Minneapolis meetup will be? 

Post: [Case Study] BRRR* with a $500k Equity on a 4 unit building

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

Will be great to see how you've competed this deal, excited to attend, thanks. 

Post: Looking for 15 unit in Milwaukee, WI area

Noah ChappellPosted
  • Investor
  • Minneapolis, MN
  • Posts 254
  • Votes 228

Hello! 

I'm just starting out as a buy and hold investor - looking to invest in a 15 unit multifamily in Milwaukee, WI area by early 2019 w/ a 100k down payment on a 500k mortgage...

1) Does anyone know the best area to invest in an apartment building of this size w/ a cap rate of at least 10%? 

2) What is the best type of tenant group to aim for (professional vs section 8, etc.) ? 

Thanks so much!

Noah