All Forum Posts by: Reece Iovine

@Alyssa Davis consider calling around to lenders in your market as well. You might have some portfolio options for renovations that are better than 203K. The 203K is a bit of a headache. You might also consider buying a property that only needs cosmetic repairs requiring less capital but still providing some value add. House hack, and while living in the property, Fund those small repairs over the course of a year out of your income and then refinance/heloc in a year to buy another property. You have a few options :) 

@David M. Ward Welcome, welcome! Material costs are crazy right now, just complete a renovation on a duplex and my material spend increased 30%...Crazy. Welcome to BP you looking to invest oos or continue in Richmond, KY?

I believe it depends on your goals. You will get better lending terms by going owner occupant, as well as start to bring in some income with your current home as a rental.

So if you are looking for fast growth I would recommend doing a House hack, and renting out your current property as long as it is profitable as a rental. In addition if you have enough equity in your home you could do a cash out refi and potentially purchase 2 properties. One as a house hack, one as an investment, and keep your house as a rental.

Side note rental income on your current primary residence will help offset the debt against that property and help your overall DTI...

PM me with any questions I'm happy to offer my two cents :)

Cash out refi if you have a low enough LTV and are looking to remain in the property. Cash out reif is non taxable however if you've lived in your home a while that will be tax free as well if you sell so either option would work.

Columbus ohio is starting to see some changes when it comes to landlord tenant laws. All of which is focuses on the tenant. Nothing has passed yet but I'll be interested to see how things play out over the next few months...

You would most likely need to go commerical if you want the seller to carry the own payment and bank carry the rest. However with out a good relationship with a commercial lender I doubt they will allow this. Your overall DSCR will need to meet their minimum criteria and they will most likely still want you to have some skin in the game.

@Donovan Preddy Wow! Awesome renovation. I'm on my third brrrr investment, I did the work myself on the first too and man is was rewarding financially. Took a ton of effort but was worth it in order to get started in real estate! Great job.

A property manager can make or break your investment. In addition to finding a good deal/agent a PM is the most important member of your team. Interview a lot specifically ones that specialize in the type of property you own. Don't have an A/B class manager take on your section 8 C/D class rentals and don't have a manager that specializes in 1-4 units take on your 50 unit property. 

Referrals are great, but don't let a referral relax your interview process, how will they maximize your roi, how do they handle re-leasing, maintence items, etc. Are there hidden fees, etc. 

Also don't be afraid to compnesate a great PM fairly! Never try to cut cost on a great PM. Best of luck! 

If you are going to push the capital from a refi/heloc into another long term investment i'd recommend just doing a cash out refi. A HELOC is just like a line of credit and needs to be paid back. You can usually roll a HELOC into a 20 year term loan if need be but will usually be higher interest that a refinance. If you need short term capital for home improvements or a flip you can do heloc and then pay it off on a sale.

SECOND PROPERTY. At this point in your real estate career and depending on your goals of course I would say it's better to scale. Debt is cheap, and with inflation it gets cheaper over time. You can earn more money by investing capital in another property in almost any market than you will be saving by paying off debt early :)