All Forum Posts by: Paul Cijunelis

You're in Cincinnati. Please go to cincinnati reia they are one of the largest groups in the nation and they are in your backyard. You'll find all the resources you need there I'm sure. https://www.cincinnatireia.com/

Mine is over 800 so yes. Possible.

It's not only about paying your bills. Your credit will drop if you don't use credit. It's a credit score. the best way to build credit is to have credit, use it liberally and use it properly.

BTW I'm doing that on one of my properties right now that finished rehab mid Nov. Listing immediately at a bit of a discount to fill it quick on ST leases to reup in spring. The only issue is with a bit lower rent there's a higher number of applicants that won't qualify but I don't mind the volume to get it filled. Good luck.

Quote from @Ayelet Wiedermann:

@Andy S. I agree with the others, definitely list it now! The only thing I'd add is to do an 18 months lease or so, so that when the next lease is up you'll be in the warmer months.

 I would list now but do a 6 month lease. There are less renters now so OP might need to compromise on the lease cost, so imo I would rent it at an attractive price now, and in 6 months raise the rent to market. If they move out who cares, it's rental season and put someone new in.

Alex you really should decide what you want to do up front. Flip or rent. Why? If you flip your flooring upgrades and appliances will probably need to be of higher quality vs a rental. Again, back out the numbers. what's a rental rent for in the area for a similar property? $1300/mo? $1500/mo? Can you rent it and get your PITI covered all in with the rehab and have some cash flow?

Quote from @Alex Collins:

It's an off-market deaI. ... My thoughts were to have an inspector come out rather than a contractor to do the general assessment. ...

Alex is the property in Indy as well? Based on your post (so far), I'd also recommend an inspector. I'd also recommend joining a local Indianapolis based REIA asap. the REIA will provide a group of investors who could get you some contractor recommends if you decide to GC the prop yourself.

You said it "needs a little work done" but budgeted $50k so those two things kind of contradict unless the home is a larger home...just curious, what's "a little work", if you haven't had an inspection yet and don't feel comfortable evaluating the costs on your own?

Also if it is intended to possibly be a rental you should calculate the end result of the acquisition, the debt service, the rehab, etc and pretend to get a loan to refinance. then look at the potential rent to offset that monthly cost and see if it would cash flow. Good luck.

Jaime, I'm actually sitting in a hotel in Lehi, near Salt Lake, right now. From what I can see around here it is a landlord friendly state so when you turn your prop into a rental you should do well as long as the numbers are good.

Acquisition is all about entry price. Look at the ARV doing a CMA or looking at comps. If a prop is 250k and you can refi at 70% LTV you want to get it at 175k minus rehab costs. If you're going to live in it for a bit and fix it up you can adjust accordingly. Good luck

Today's interest rates are more difficult to do deals but people also did deals at 6-8 or 10+ percent interest in the 90s and for decades prior. So it is not impossible. However, I suppose it depends on your situation.

I know some people who borrow from their 401k or use an IRA to pull from. Some use hard money or "soft money" dscr loans. Some use family and friends or partner and give up a percentage of the deal. I would also mention a heloc if you have equity in your home. Borrowing cash from another source does create a lot of risk so make sure to stick to your numbers and make the deal happen where you minimize that risk.

Another option perhaps not mentioned is a wrap-style deal subject to or seller financing. You'd be surprised how often a deal can happen using this strategy but it is also important to run the numbers and make sure your COC return, etc are in line with your expectations.

Probably the lowest risk is partnering because a seasoned investor will verify the deal (hence their participation) and likely take care of the initial money required. Good luck

Yes I'm fully aware of the lead based paint addendum and its use as I mentioned in my post. Thank you.

I own about 40 props in Illinois and N Indiana and have been working on taking the next step... starting a property management company. We are opening Monday!

Question for the experts here, for lead/radon disclosure, I am aware we need the form for tenants, but do you get the actual owners to disclose on the properties in their portfolio if they are aware of lead based paint? If yes, and they have multiple property addresses, do you use your own form to list all the addresses with Y/N checkboxes next to each?