All Forum Posts by: Robert Mendenhall

Greeting BP,

Curious to hear some general thoughts on how high is to high for home prices. Im looking in the Westerville area of Columbus and some duplexes are going for 400k. How realistic is it to expect much appreciation on a property that high already? With rents as well in the $1500+ range how high is too high before people just cant afford it in Columbus? I know Intel is expected to bring wage growth but can we really rely on that as fact? Even so, how much could that really impact?

My VA loan gives me 0% down with no PMI. Really just using general conservative numbers I've seen recommended in webinars and books

Hey BP,

Looking for a little advice on this property. Its in east Columbus where a lot of investors seem to be focusing. I'm curious if I'm speculating too much or if my lack of experience is showing. My plan is to use my VA loan for a no money down multi family.

That being said I’ve been trying to get seller credits for a 2-1 buydown on my rate. I’m afraid I’m speculating too much though and the numbers might not work in the future. I’m more concerned with wealth than cash flow at the moment with 0% down, but my biggest fear is not having the flexibility to continue my stack or get out if needed.

I’ve ran the numbers as if I was getting current rents at 4.25%, BP suggested market rents at 5.25% in the second year, and the upper range of current market rents at the 6.25% which would kick in year 3. With the hope of higher rents and slightly lower rates for a refinance before the cash flow gets too negative. What do you think?

4.25% : https://www.biggerpockets.com/analysis/rentals/5988a2bd-bb09...

5.25% : https://www.biggerpockets.com/analysis/rentals/c93994fc-0c1a...

6.25% : https://www.biggerpockets.com/analysis/rentals/b806596f-d4ad...

 Mostly the later, but i guess some of the former too now. ha. 

Hey BP,

Im starting to put out offers looking for my first owner occupied duplex! I feel most of them are already occupied and Im not able to get in without being under contract. So we put in a walkthrough contingency to maybe avoid the inspection cost if it didnt pass my personal inspection first. If my offer were to get accepted Im curious on the ways to conduct a walkthrough with the current tenants stuff. 

What would be the appropriate way to go about this?

Hi BP!

New real estate investor here, moving for work and looking to get my first deal in Columbus, OH with my VA loan. I've been reading every book on here I can find, but they all seem to be from a few years ago when the economy was much different. They all seem to live or die by the 1%, 4%, 50% or whatever rule. Im sure its still possible to find those deals. But in what i assume to be an appreciating market, and in my situation is it realistic to follow those rules? Using max leverage with no money down, occupying one side, and the long term goal of wealth. Im not on a time crunch so i can be patient, but is it realistic to expect those number? Would it be beneficial to wait for the "home run" or to use different parameters and get a "base hit".

 I never even thought about building. Always just assumed the cost of entry was too high. Would that council variance application be a good place to start looking into it? 

Good morning BP,

Ive been digging in and looking for a multifamily in Columbus to start my REI journey. I was wondering about some issues to look out for in older home areas. A lot of the homes were built around 1900. I was wondering if anybody had some area specific issues to keep an eye for and what are the BIG problems to avoid. Such as settling or certain areas that flood often.

Hi BP,

First time home buyer looking to house hack. Got an off market deal offered to me thats peaked my interest and im curious what you all would do. What do you think and what would be your next steps?

Price: 340,000

Description: Brick triplex in a B- neighborhood. City is one of the fastest growing in the country and are spending money in these areas. Outdated interior but nothing seems too bad. Garage and basement for each tenant. 1 unit vacant. Other 2 units rented month to month on well below market rents of 950. I believe market to be 1100-1250 average. Could fetch 1300+ down the road with slight cosmetic updates

Details: I would be using my VA loan with no money down to purchase. I would ideally like to pump rent to 1100 the first year and do minor cosmetic upgrades. Would need new appliances as well at some point.

Im looking to house hack. The goal would be to stack multiple units over the coming years using a combination of my VA eligibility and FHA loans