All Forum Posts by: Roemeo Barnette

hey what's going on guys I am from Cincy but I have not lived there for about 10 years due to the Army, however, I am currently looking for a 6-8 unit property there.  There was one on the market but it got taken off if one of you could message me if you deal with sales I would love to connect. Thanks!

@Jerry Jawuan Huggins hey Jerry this is a very feasible approach. I have done it and a lot of others have done it. Just choose your words carefully when you approach the lender . Don't say you want to buy an investment property because the va loan doesn't provide funding for investment properties. Tell them you are going to purchase your first home and quad plexes, triplexes, duplexes that you can owner occupy are all zoned residential and the va will provide funding for that property as long as it meets the certain criteria ie: passes va standard inspection. Be prepared to pay for the va funding fee (nothing is free lol) but you can wrap this up into your total loan, with no down payment. Also more specifically make sure the property you are buying that you made an offer on isn't over the appraised value. The VA will only fund the appraisal amount and you will have to cover the rest out of pocket. Best of luck and feel free to reach out any time attached is the va loan handbook link.

https://www.benefits.va.gov/warms/pam26_7.asp

@David Lecko congrats !

@Dennis M. You have a good point on why the 3 year lease is a rookie mistake, but your approach on the topic was very distasteful. How about we congratulate @David Lecko on his success and then provide your opinion on why a 3 year lease isn’t ideal rather than a rookie mistake. We are all here to learn from each other and help one another, let’s build each other up.

@Jason DiClemente and all. The 1% rule works great for me when analyzing deals, however if you have other methods that work for you in your area that’s great ! I guess the rule is location dependent and on exactly what type of property. I think it works great on Multifamilies properties. The purpose of the post was just to see how others analyze deals and if the 1% rule is a good guideline to base purchases off of. Thanks everyone for your feedback .

@Dan Heuschele @Anthony Wick @cody

I appreciate all of your responses. I was asking the question because I feel the 1% rule itself should be leveraged on if you can increase the rents before considering it's not a good deal. What's the potential for the property ARV if there are any. And lastly what can you do to the property to make it compete with the surrounding market rent.

What’s going on BP!

I have a question for my fellow investors.

Do you live by the 1% rule when investing in Multifamilies?

I’m asking this question because we know the 1% rule is for a GREAT DEAL! But what makes a GOOD DEAL to you percentage wise ? When you are analyzing a property and your market rents are below 1% of the price per unit do you walk away ?

Hello @Jessyca Jones I would suggest no and low money down - Brandon Turner ( this book will give you some insight on how to invest in RE multiple ways using CREATIVITY instead of CASH) and managing rental properties- Brandon turner this book is by far my favorite because he literally goes through every trial tribulations you will endure and lays out what it means to be a landlord. The book includes free forms as well to reference so you can add to your investor tool box.

@Peter Shafik Follow up on what you are being advised on by Lucas and Avery I haven’t worked with them yet, but they are very reputable. With that being said when you are analyzing properties that you are considering to buy check the zoning of the property you can find that in the city records.  A lot of homes that  you described could be duplexes or quads, but again check to see what the property is considered by its zoning it plays a huge factor when it comes to property/city taxes. Best of Luck ! 

Hello @Andre L. Goodwin welcome to BP! I am from the outskirts of Cincinnati, I am active duty Army and looking into investing in the Cincy area as well.  I currently own a couple properties in 2 different states and would love to share some insight with you on what I have learned.  Feel free to reach out anytime and I wish all the best to you on your future investments!  

@RANJAY SINGH the only way a tenant can stay after the lease period ends is if you (the owner/landlord) allows it. You have to remember this is YOUR property you are the boss and you both signed a lease agreement stating you will both abide by the lease. Once the tenant does not pay rent you give them a late fee notice and then a second one, by the third notice comes around it should be the eviction process notification. I would encourage you to refer to your current landlord tenant laws and KNOW your lease. Being pregnant is not an excuse to withhold rent. A good rule of thumb for vetting future applicants is making sure they make 3x the monthly rent that way it shows they have good financial security while conducting the background check. I have attached a link below where you can research the laws that apply to your specific state . https://www.landlordology.com/state-laws/