All Forum Posts by: Alex Brookbank

@Samuel S. Typically, you'll need 2 years of landlord experience on your tax returns before a lender will count rental income AS income. They probably will approve you based on your w2, and ignore the rental income. Once you have two years of landlord experience, it will be much easier to get a second place, as that rent would then count.

errr even 350k I don't know. It only makes sense if the area is going to turn. Then you'll get GRM multiple expansion ... maybe up to 10. Hyde Park can trade at that number, OTR and downtown too. Of course I'm not looking at a map so take it all with a grain of salt.

I agree that the area has some risk. From a deal analysis standpoint, assuming their doesn't need to be any work done. 350k could be attractive. That gives you cashflow and future upside. I would cut the owner's projection of 1200/month down to 795 and work from there. What's your reason for buying: the cashflow or the upside if the area turns?

I would get a buyer's agent. Doesn't cost you anything and they will take a lot of responsibilities/skill-sets off your plate. my .02. @David Hildebrandt

@David Hildebrandt I get that. Communicate that to your realtor like you did. Maybe your realtor can call their realtor and spit ball. I would tell my agent I think it's high but I'm interested and ask if They still want go. now it is their call. All in all, I think you should go see it. You'll never really know until you see it. See it, analyze it for a week, then decide. Do you know if the building's location feels "safe" up there right now? 

The sellers expenses are probably low. It sounds like that's the expenses according to them, which is never representative of the true expenses. For instance if you're paying for utilities besides water garbage sewer, that's a big expense. But even if you doubled the expenses, the deal could still work. Just get a property inspection if you get that far. @Chiquita Mcgill

Yes @Ned Carey exactly

big banks are typically annoying, if I may say so myself.

@Arthur Nunez Most lenders like to see that 1-2 years of experience before they give you credit. So the answer is to keep cold-calling lenders ... or ... hunt down 2-3 mortgage brokers and tell them your dilemma. They will each work with a bunch of lenders (and have special relationships with them that they could leverage). I would do it that way and see where it takes me.

@Chiquita Mcgill Are you SURE that is the fair market value? What makes you think so? Does it need work...

Is the annual rent of 77k the actual rent... or potential.

@David Hildebrandt I know exactly what area that property is in Cincinnati - the restaurant too - and the view. That area is intriguing. The biggest thing I've noticed is a ton of sellers over price their properties and they sit for awhile. So many people are crazy and emotional. But these can be good, if you swoop in after they get beat up on price for 4 months.

Conversely, new buyers over-analyze and only want to make a decision on the actual numbers. When in reality, ONLY PAY for the actual numbers, but make YOUR BUYING DECISION on the potential. That thought process has served me well my first three deals. One time I walked into an MLS property and my first reaction was that the local market is stupid, this thing is so underpriced people are misunderstanding the potential. That was my THIRD DEAL.