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All Forum Posts by: Tom C

Tom C has started 40 posts and replied 1025 times.

Post: Storm Windows vs Replacement Windows

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

Not sure why you would have to pay someone to put the storms up and take them down every year. Most storms even the real old ones, all you do is push the glass up and pull the screen down from inside the house. Also to have replacement windows installed, you can figure about 200 bucks per window. If you're not paying the heating bill, I wouldn't worry about installing new windows.

Post: Profit Margin for rental???

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

If you are paying out $1500 per month just in PITI, to cover your expenses, you will need rents at least 3K per month just to break even. As Mike's research has indicated, operating expense will be around 45 to 50% of your collected rents.

Post: new to investing in residential multi-family properties

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

Hey Chance,

I guess I am just lucky to have an over of abundance of properties in my area. There are multiple SFR, Duplex and triplexs ranging from 15K to 40K and all they really need is some TLC and a lot of paint. You have to be willing to grab a couple HUDS.

Are you looking on your HUD website for these properties?

Post: new to investing in residential multi-family properties

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

Chance,

If you have to put that much extra down to make it appear to cash flow then you are paying to much. I don't understand how a property can be considered profitable if you have to take money out of your own pocket to make it appear cheaper. Remeber your cash flow numbers should be figured agaisnt the full purchase price, not what you owe the bank.

Post: Sold my first rehab-

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84
Originally posted by "Minna":
I took out a 100% bank loan (stated income 75/25, 8%, 12%, interest only, no prepay penalties, as I recall I did pay 2 points) to purchase the property, and I took out a heloc on my own house to fund the rehab and holding costs. I didn't really have any spare cash hanging around. Just equity.
Actually I got lucky there too, since I bought my own house just last year with nothing down, and the only reason I had any equity was that it was a neglected preforeclosure that I just happened to run into at the right time and jumped on it - hence the equity.

Minna,

Can you say where you found a lender willing to provide this type of funding?

Thanks

Post: new to investing in residential multi-family properties

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84
Originally posted by "chance2":
I am under the impression that an investor will need between 20-30% of the loan for a typical down payment on an investment property. On the properties I have been looking at that equals around $40,000. And the cash flow is still usaully under $500 a month. Would the 20-30% down payment be correct for a first time income property buyer???

Thanks for your advice on the pre-approval letter.

Thanks again Mike.............

It sounds like are looking at buying a property for around 175K. So you are financing 135K (if you can get 30 fixed) @ 7% PITI = over $1000 a month depending on your taxes. This means that you need to make rental income of 2K per month or more. As long as these properties are not considered commerical (In Ohio 4 units or more), you should be able to get close to the same terms that you get with a convential home loan. My lender only requires 15% down, so I am not sure where you are getting the 30% down from.

Post: Morbid question

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

Ryan,

When I was a cop I got a call to go to a house trailer. I guess the owners neighbors were concerned. When I looked in the window I could see I huge guy sitting in front of the tv and you could see flys, flying all over him. We broke open the door and it was horrible smell. To make a long story short. The guy died while sitting in his chair watching tv, he had been there in that hot trailer for a week. The trailer was so full of junk the fire dept had to remove the bedroom window and haul him out on a back board. He looked like a walrus he was so bloated. When they went to pick him up to put him on the back board, the dudes back split open and "stuff" just blew out everywhere. Needless to say, I think they had to scrap the trailer.

Post: How good is a HUD property inspection?

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

I am further into rehabbing my rental and I went to turn on the gas the other day and guess what? The gas mans test failed, I have a leak. He pointed out where he thought the leak maybe, after several attempts to get the pipes loose with heat, I couldn't. I had to call in a plumber. Luckily I have a good one and he worked 3 hrs and only charged me $125 bucks. The termites are going to cost me another $800. I am still going to be under my 3K budget and it will be done well before my self imposed deadline of one month, but remember when buying a HUD home or any home that hasn't been lived in for a while, no matter how good of a inspection you do, there are going to be little things that pop up that will cut into your profit. Can't believe I didn't see those termites!!

Post: Sold my first rehab-

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

Congrats! Nice little profit for 8 weeks worth of work.

Post: First Rental Property

Tom CPosted
  • Real Estate Investor
  • Ohio
  • Posts 1,067
  • Votes 84

Just answering your question about being a absentee landlord, I wouldn't do it. Although I do know one person that lives in CA and has several properties in Ohio. He does have an excellent team of people that he can trust in Ohio. The PM is also a cop in the same city where the rentals are. I just know I wouldn't feel comfrontable not being able to visit my properties on a regular basis. I guess it comes down to how good of a PM you have and how you are going to work through the legal issues.