All Forum Posts by: Ryan Conklin

Hey everyone! I️ came across a house for sale in a great area that is a legal 3 family, all 2/1 units, for $550k Unit 1 was just rehabbed but vacant Unit 3 I’m not sure about but rented for $1750 Unit 2 is “value-add” and vacant so I️ know I️ could rent or rehab it Estimated rent roll would be $3600 as I️ am thinking $1850 for rehabbed unit and I️ would take the unfinished unit. Property taxes are 11500/year Tenants pay gas and electric I️ would pay $1700 for an apartment in this area. I️ am looking for a property to house hack, so I️ would look to do an fha with 3.5% down. Would this deal make sense? Thank you in advance!!

I think claiming depreciation won't affect your "lendability" as it is a noncash expense for tax purposes. It actually will increase your cash flow because you will be paying less in taxes. I am just learning and have no first-hand experience but I am majoring in accounting at school so I only have that understanding to give you.

I think it would also help you appear like you know how to utilize different financial strategies, which could help.

I am looking at a multi-family listed at $90,000, I ran all numbers with this price. The parcel of land includes 2 homes with 2, 2bd 1ba, units. The one home was just rehabbed and is occupied 100% receiving $1125/month. The seller states that the second home "needs updating before renting". The picture of the first spreadsheet is assuming I never rehab the other 2 units, the second is assuming I get them up and running. Average listing price in area, mostly SF and duplexes, is $130,000. I would lose money until the second house is complete.

I tried to estimate high so I am not surprised with anything. Are any of my numbers off? Am I missing expenses? 

How much should I expect to pay for "updating" of 2 units? $50,000? Is there a "good" way to finance this?

Most importantly...Is this even a good deal?? If not, is there a price that this deal would make sense? 

This would be my first deal so I am looking for some heavy criticism.

Thanks!

 This is exactly why I thought I would ask first. I was trying to stay away from trying to get a loan since I'm a full-time student and have no steady income, I only work during breaks. Are there any specific neighborhoods you would suggest looking?

Originally posted by @Ryan Arth:

Are you talking about a purchase price of 1-15k?

 Yes. 

I am a college student trying to put some cash I have saved up into a rental property.  I live in the Suburbs outside of New York City which means there's nothing under $300k worth touching.  I want to invest in the Cleveland area since I can scrape together some cash for a property + 10k of rehabs.  I have a few in mind ranging from 1k to 15k.  I have heard to not touch anything to the east of Cleveland.  Does anyone have any experience investing in this city?  Any advice on out-of-state investing in general?  I am just starting out and would appreciate any help I can get.  Thanks!

@Penny Clark Exactly what I was hoping to hear! Thank you for the quick reply!

I am looking at getting a 5 bedroom home with a FHA 203k streamline loan. First off, I read somewhere that the FHA loans only support 4 unit homes. Do they count bedrooms as "units"?

My second question is whether or not I can rent out the other 4 bedrooms.  I will be occupying the master but would receive a bunch of income from the other 4 rooms.  I do not want to go through hassle of buying/ rehabbing if I won't get approved for a 5 bedroom or can only rent out 1 more room.

Thanks!

I recently got told my college couldn't house me this year. I was looking around and couldn't find anything to rent for less than 1200 a month, more than my school's housing. I have always been interested in REI and found out about the FHA loan. I then found a property that is 5 beds 1.5 bath selling for 210000. 1000 a month for mortgage and 800 a month for property tax. The house does need some updating. I already have a roommate willing to pay around 900 a month. I plan on finding 3 other students in my position and charging 800-900 a month per room. My one issue I'm running into is how to collect rent. I am not sure if I want them to know I am the owner of the property so they won't try and lower the price or get leniency because they know me. How could I get around this?

My other question is if this is even a good idea. I have 3 years left and the home is valued at 260000 with homes in the area selling for 410000.  I believe the necessary updating, etc. Will bump value towards average and after 3 years I can refinance or sell for around 390000.

Thanks!