All Forum Posts by: Patrick Crehan

Kennedy heights is booming right now. Where I chose to purchase my first rental 

Hello BiggerPockets community! So I have an issue... I think. Here's what it might be: 

I recently purchased my first property (in Cincinnati OH) last July to live in and eventually rent. The house is perfect for rental, for it was a very cheap, but manageable in terms of fixing up, which I did. The house is in great shape now and ready for rent. I was excited, for I had plans for about this time of the year to start looking at new properties and to fit a renter in to the house I just fixed up. Everything was going as planned and on schedule... I have my money saved up for a next property, the property I own now is ready for rent and all of a sudden........ COVID19 GETS IN MY WAY... or does it? Iv'e been debating whether or not this whole pandemic had really effected me from moving on with my plans. I recently talked to my finance guy and he said that government backed loans may be getting a little more stricter and it may be harder to get a loan in general. But, I am still working at my job, my credit score is around a 700 (which I consider ok, especially if I wanted to get an FHA loan), and I have plenty of money saved up for another property. Here is where I could see a problem: Finding a renter to rent out my house I just fixed up. I mean, people are still renting out apartments and houses, but I assume the number of people searching for a new rental has declined immensely. I am in no rush to leave my property, but I do like to stay on track with schedule. That being said, I do not want to delay this process the whole entire summer and surpass a potentially hot market. So BiggerPockets community... what should I do? Delay my goals, or pull the rope and give myself the ok for a full steam ahead? Also, what could be the most obvious negatives and positives for opening up a new rental or purchasing a new property during the COVID19 pandemic?

Generic info:

Single family house in cincinnati OH for rent

Rent would be 1200

Looking to purchase another property in which I would be living in for a while. (one with a good school district and good neighborhood, wink wink).  

Thanks guys 

@Thomas Sedita

Ah, I suppose renting long term until the end when I want to sell the property. Then I would switch the lease to a month to month possibly if the tenants are good and they wish to continue to live in the property. Although I will have to research the difference in both of these strategies

@Dennis M.

Hi Dennis. I recently visited Erie Pa and understand why you have probably seen this. Trashed houses and all.. I suppose the apples don’t fall far from the tree

@Thomas Sedita

Hi I suppose I would be doing a short term investment as in only a few years of rental? My main goal is to make my money off the appreciation of the property.

@Stacy Livingston

Hi, I purchased with a 10% conventional. The property was in a little bit of distress so FHA was not an option on my part. The property was cheap though and I was fortunate enough to have the seller pay 100% of the closing costs. The mortgage is low enough to have a good monthly cash flow and the property is 90% updated so I'm banking on a profit just from sitting on the equity. As far as managing the property, I would expect to do the most I can myself for I practically updated the house my self.

I fixed up a single family in an upcoming neighborhood recently and have been living in it for a little bit. The plan is to sit on it, rent it out while it gains equity when I move out in a few months. ( I am purchasing another property to settle in)

I never owned a rental and will be land lording for the first time. For a single family house, what problems or situations will I most likely run into? What were some situations novice landlords had renting out their single family for the first time? The property is old (1913) but I updated it mostly (plumbing, HVAC including heat and ac, new ducts new roof, plumbing fixed flooring redone.) Any responses negative or positive are accepted. I can’t wait to see what you all have to say!

@Tom Hastert

Most conventionals are As low as 3.5 -5 % just like the fha loan I believe. My lender was just informing me about that actually

@George Munoz

He used a VA loan.. but there had to of been some kind of extra cash used for the deal, whether is be for closing or contracting?

@Michael Ealy

Started off at Zero?! I heard stories but have never had the guts as a beginner to go into those strategies. Ok now that’s a confidence boost.. THANKS