All Forum Posts by: Timothy Christian Jr

I am encountering difficulty in finding a suitable mortgage for my rental investing career. Every bank I speak to insists on a minimum 20% down payment if I do not plan to reside in the property. You may wonder why I do not consider house hacking and obtaining an FHA loan to resolve this issue. However, I am currently attending a community college in California and have not yet decided on my 4-year college. Consequently, I will not be able to reside in the property for the required duration to qualify for an FHA loan. I will continue my search, but I would appreciate any suggestions you may have. Should I persist in finding a conventional loan that allows for a 6% down payment for long-distance investing, or should I explore owner financing?

Any feedback would be greatly appreciated!

Thank you, Tim.

Hello Timothy,

So for a conventional Fannie Mae 1 unit investment ppt I believe you'll need about 15% down. For 2+ unit I believe you'll need 25%. So with conventional, 6% down for an investment property will not work. Not possible.

If you want that low amount you may consider owner financing

Hey, Dennis

yea at this point a 6% conventional loan for an investment property is not gonna happen, so I'll definitely explore creative financing.

Thanks for the feedback!

0 Votes

Cleveland, Ohio

Quote from @Erik Estrada:

Quote from @Timothy Christian Jr:

Any feedback would be greatly appreciated!

Thank you, Tim.

Hey Timothy,

6% down on a conventional investment property loan does not exist. You could however explore seller financing and buy a property with 10% down with the seller being in second position on a commercial mortgage

Dear Erik,

It appears that seller financing may indeed be the most suitable option for me. I am grateful for your valuable feedback, and I will certainly explore other avenues of financing as well.

Thank you

0 Votes

Cleveland, Ohio

Quote from @Nolan Chandler:

Hey, @Timothy Christian Jr. I know that it is possible to get a vacation home mortgage that can allow less than 20%, but it is case-by-case, and lender-by-lender. However, if you are open to other types of financing such as private lending (family, friends, colleagues, etc.), that may be a way to allow for a lower down payment.

Would happy to discuss more if you ever wanted.

__________________
REALTOR® CalDRE: 02221003 | CA Bar: 322013

Hey Nolan,

I would like to express my gratitude for your feedback. I am indeed interested in acquiring funds from my family members, although I must admit that it is not my preferred method. I would rather explore other financing options, but I have not completely dismissed the idea. Nonetheless, I would greatly appreciate the opportunity to discuss any other potential avenues that I could pursue.

Thank you once again for your input.

0 Votes

Cleveland, Ohio

Any feedback would be greatly appreciated!

Thank you, Tim.

2 Votes

Cleveland, Ohio

if you think I should get pre-approved for a loan first, would it be more effective if I were to get the loan based on my credit score (which is not very high considering I'm still in college) or should I try to receive the loan based on the asset that I will be presenting to the bank or the hard money lender. The sole reason I initially deemed it logical to engage a real estate agent was to secure approval for the loan based on the property I intend to acquire.

feel free to leave me any advice you see fit for my problem.

Thanks,

0 Votes

Quote from @Jimmy Lieu:

Quote from @Timothy Christian Jr:

Hello, everyone. My name is Tim Christian, and I'm looking to buy a duplex in the Midwest. Ideally, it would be in high cashflow areas like Cleveland, Dayton, or Columbus (Ohio), but I'm willing to look for anyplace in the region. I'm interested in speaking with a real estate agent who is patient, ready to guide me through the due diligence process, and, last but not least, has expertise working with investors purchasing properties far away.

best ways to contact me! Via DM.

hope to talk you soon!

Hi Timothy, I personally love Columbus Ohio and as someone who works with a lot of out of state investors - there's so many catalysts for why you should invest here. Specifically, there's job growth (Intel, Honda, Amazon, Nationwide, etc) and the population is growing (unlike Cleveland or Cincy). I really see Columbus Ohio as an extremely safe bet for the next 10-20 years. Plus, there's still so many positive cash flowing and 1% deals here in Columbus Ohio. Just this month, I’ve gotten under contract for my clients for multiple 20%+ cash on cash rental properties so there’s definitely tons of opportunity here. As a local investor and agent here in Columbus, let me know if you have any questions or want to connect!

Columbus seems like a fantastic location to invest in both for the present and the future.

1 Vote

Quote from @James Wise:

Quote from @Timothy Christian Jr:

best ways to contact me! Via DM.

hope to talk you soon!

I don't know that I'd group Columbus in there with Dayton and Cleveland as a high cash flow area. Columbus is gonna be a bit different than a lot of the cash flow areas in Ohio like Cleveland and Dayton. Pricing in Columbus is much higher than those other cities.

Oh, I see. Thanks for the tip; I'll keep it in mind. Additionally, I read your "Ultimate Guide to Grading Cleveland Neighborhoods" and found it to be quite enlightening.

0 Votes

Quote from @Anthony L Amos Jr:

Quote from @Timothy Christian Jr:

best ways to contact me! Via DM.

hope to talk you soon!

Hey Tim!

Invest in the wonderful town of Columbus, OH. Home to The Ohio State University with nearly 60,000 students, 5 Fortune 500 companies, over +25% population change since 2000, 2016 smart city challenge award winner gaining 50 million dollars in funding from the government (https://www.columbus.gov/smartcity/), Intel is spending 20 Billion dollars to build two semiconductor plants, and many more great things presently and coming in the future. Needless to say, Columbus will remain a strong real estate market for the foreseeable future.

Anthony, thanks for this! I'll most certainly broaden my search in the Columbus region.

1 Vote

best ways to contact me! Via DM.

hope to talk you soon!

4 Votes

Quote from @Amir Khan:

Quote from @Timothy Christian Jr:

I determined the cap rate for this duplex in Greenwood, Indiana, earlier today, and it was a 7 cap in a B class neighborhood. How can I calculate my market cap rate (CR) with this data? How can I determine if a deal is excellent after I know my markets' (CR) and my rental property's (CR), based on whether my (CR) is lower or greater than the typical markets?

As mentioned by some others as well, when analyzing a residential property (1-4 units), you don't need to use cap rates (which is for commercial properties 5 units+). Rather you should be using CMA or comps (ask help from a local realtor and they can do it for you).

So in this case, I would look for comparable duplex starting within the subdivision of subject property, if you can't find anything, then you increase your search area till you start finding comparable units. You will also compare the properties based on year built, no. of bedrooms/baths, square ft., condition and other features (parking/garage) etc. This would give you a more accurate valuation plus this is how your lender will also value the property.

this was extremely helpful, thank you I will def. be looking for a realtor you could better assist me in using a CMA/COMPS.

0 Votes

All Forum Posts by: Timothy Christian Jr

Timothy Christian Jr has started 10 posts and replied 30 times.

Post: Are there any conventional loans available that require a down payment of 6%?

Post: Are there any conventional loans available that require a down payment of 6%?

Post: Are there any conventional loans available that require a down payment of 6%?

Post: Are there any conventional loans available that require a down payment of 6%?

Post: when starting out should I get Pre-approved for rental loan or find real estate agent

Post: looking for agents

Post: looking for agents

Post: looking for agents

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Post: Determining if your Cap Rate is good or bad