All Forum Posts by: Oleg Shalumov

@Devin Tang as an investor you need to grow and maybe move from duplex to 4-plex or maybe small commercial property (6-10 units). 

If you do not have money for downpayment, may be you can consider teaming up with some that have a similar investment plans? You can go to meetup groups and look for a partner. 

You can also invest out of state, and there are so many ways to do it (for example read the book by David Green about out of state investing). 

@Leslie Schwab I am looking for an investor like that!!  

For your case, ask him how much he is looking on a yearly returns, and setup that as preferred return for him (as long as the number is working for you). I do not have the numbers on your deal but 6-9% preferred is common. 

In addition to Managment fee and seller fee, you may also charge one time finder/acquisition fee. But you want to keep the relationship, you could drop seller and acquisition fee (on this or the next deal)

It is hard to comment on appreciation as I do not know the details of the property. But if it is a value-add and you can increase the value of the property by renovating and increasing the rent - that would be one of the best ways to go. Just make sure that your market can support those rents. 

Best of luck  

 Yes, if he is asking for $390K and can finance the whole amount, just agree on the full price. Once you increase the rents, you can easily refinanace (if you want) and pay off his balance. 

@Matthew Shay we are looking for following returns for our investors:

ConC 9%

IRR 15%

@Mike M. 1% rule is one of the best filter when you are looking for a property. If the property passes the 1% then you can look into it and analyze farther. If it does not meet 1% rule - just pass and move onto next property. 

@Kelli P. I would say you should pick a different area unless you live there and know the area extremely well. It is a good city, and have lots of potentials, but risk level is very high for people who are starting investing.

I was hoping you would purchase the property :-)

@David Diaz defenantly possible as that has been done by many people. 

Usually people would pay down the mortgage and refinanace in a few years. 

I believe with FHA loan, after a year you could move out of the unit you live in and rent it out.

@Ryan Proffit  look like you found a good deal and if you sure you can increase those rents (hopefully on all units except your dad’s :-) - you should be in a good shape. 

For the offer I would suggest ask seller to make a choice. I like to make 3 offers (You can adjust the numbers):

1. Full price with full seller finanace. 

2. $370-$380 if seller can finanace 20% of the deal

3. $350 otherwise. 

 Brenda, you should be able to put this one out ... just make sure you have money in reserve for planned renovations and some additional move in reserve for something unexpected.

Best of luck!