All Forum Posts by: Robert N.

@Caroline Gerardo, will do! Asking costs nothing...it is worth a shot. I am almost at 1.5 points now... :(

@Craig Janet, thank you. I could use some HELOC money to pay for this triplex and not go the mortgage route...just wasn't sure if I should. I hope others will chime in with their opinions regarding this option. :)

@Victor S. I didn't know escrow was negotiable...I'm reading online now about that...and about the other stuff you mentioned...

@John Paul the property is in Galion, Ohio...I grew up next door in Mansfield, Ohio.

Thanks for your input @Kyle J. Good point...saving a % of the rent for repairs would vary wildly depending on what the rent actually is. 

@Steve Morris, I did not...I was originally going to pay cash for it...but then an opportunity came along needing the cash I was going to use (for a down payment on another property)...so I turned to a loan (and the banker mentioned that they rarely give out loans for that small amount - so I thought I was lucky they were willing to do it). I am learning so much! Thank you B.P. community for being awesome!!!

@Jay Meola, no rehabbing...just doing the neglected maintenance. :) It really isn't worth rehabbing in my opinion. There is room for another efficiency to be built in it too and TONS of room that could be rented out for additional storage. But, not worth the cost of building the efficiency...I am looking into the storage rental part though...right now, the next door business is already using this extra space as storage as they are friends with the owners...might continue this for a small fee/month for them. 

Thank you all for your replies! I do feel a little shocked...but suggesting 5% on the BP calculator rather than 1.5% should help avoid a problematic situation (incorrect Cash on Cash return). (Maybe scale down from 5% to 1.5% as the the purchase price increases?) I'm pretty new to this world...just been doing my education on B.P., talking to other investors, and reading!

@Jay Meola, the property is in Galion, Ohio...I grew up next door in Mansfield, Ohio. The Midwest seems to have good cash flow properties available...but I don't plan on much or any appreciation. So, that is the trade off! The property I am buying isn't pretty but it is already fully rented. 

Hello all, 

This is my first question posed on B.P.! My question is simple. I am set to close on a property this month (a triplex). The purchase price is $48,000 with 25% down ($12,000). So my loan will be $36,000. However, I was shocked to see the $5,971 in closing costs/fees! Watching Brandon Turner's videos, and according to the B.P. Calculator, I should estimate about 1.5% in closing costs...but my closing costs and fees are significantly higher (double digits). What am I missing or not understanding here? I am attaching a picture of what the loan company wants me to sign (which I haven't yet). Do these amounts look normal? Would you sign for this loan or just pay cash if that was an option? Thank you!

@Cynthia Pochatek, I grew up in Mansfield Ohio. In fact, I’m set to close on a duplex there next month. Mansfield has changed since I left Ohio in 1997. I’ve been back several times in the last several years and it definitely has seen improvements. I was there over the weekend and it seems like the population has declined quite a bit. Just not much traffic. There used to be a lot of gangs (don’t know if that’s still true).  But the downtown has been cleaned up in recent years. I actually was walking down there and felt safe. Don’t know if any of this helps or not. But the price to rent ratio seems good. Just check your crime data.