All Forum Posts by: William Alonso

Thanks for the recommendation Todd. I’ll reach out to them! 

Hi All,

I'm working with an investor who is going to be doing a 1031 for a property I am helping her sell.  She may purchase here in Columbus, but she is also looking at options to invest in a multifamily complex in Cincinnati or Kentucky.  She is looking to buy in the 1-1.5mm range/ apx 20+ unit complex.  She's flexible if the deal works but in general she is looking at this type of investment.

Are there any agents that focus on larger complexes that anyone can recommend?

I'd really appreciate it, thanks in advance!

Hey William, Congrats on your investing success! Closing in an LLC (commercial loan) vs closing in your personal name/conventional loan is something that I would encourage you to look at. With this type of financing there would be no limitation due to DTI. The bank is going to underwrite the property based largely on the ability of that specific property to perform. They will consider your credit score, and will look at your income, but they're not going to approve the loan on those #s like traditional financing. I would recommend finding a community bank that does these types of loans. It sounds like you have some equity built up on some other properties? Are you able to refinance and take cash out or do an equity line on them, and then use that cash to buy your next property? We often do that on our properties with the goal of continuing to acquire as many properties as we can vs selling off properties to buy more. Good luck sir!

Originally posted by @Allen Tracy:

I was under contract there on a duplex that had 2bd per side. Rentometer said I could get $850-950 for each 2bd but my property manager said even with a rehab he didn’t think I could get any more than $750 and that was on the high end. 

Thanks Allen that's the same type of issue I'm running into.  I know what Rentometer and Zillow show, but I haven't actually talked to anyone who owns there that is getting those rents.  My assumption is it can be done.  I know it is in many parts of the city and there seems to be few neighborhoods where $900 is not doable, but again until I can speak with someone who let's me know they're getting it consistently I'm not 100% certain that's the number here.   

 Thanks!

Originally posted by @Raul Velazquez Jr:

If the numbers are that tight I'd give it a second thought. What if the rental market take a hit and you're forced to take less for rent? Just something to think about.  Good luck on your journey. 

I hear you Raul I appreciate the feedback.  I've thought about that as well and I've underwritten it several different ways but to make this a deal I move on the $900 is important.  I'm not losing anything if I get $800, but I'd have to pull back my construction budget some which I'd prefer not to do.  

Thanks!

If anyone owns a 2 bedroom unit in Franklinton I'd appreciate a little feedback please.

The main question I'm trying to answer is can I pencil in a minimum of $900 in rent for an updated 2 bed in Franklinton if I purchase there?  Or should I expect something closer to $800 or $850?  I need at least $900 to make this deal work which I think should be the case, but was curious to hear about actual rents from those of you that own here. 

Thanks in advance for the help!

  

Hi Rebekah, 

Welcome to Bigger Pockets and to investing in Columbus!  It sounds like you have a good process in place to be successful.  Do you have a target area in mind that you are focusing on?  

Originally posted by @Joseph Hammel:

Is anyone still doing deals?

I picked up a super cheap sfh for my self directed it's and have a offer on a small mixed use commercial/ residential. 

be safe!

Joe

Hey Joe, I'm still closing deals for my clients and I just got in contract for a duplex for myself.  Some people want to wait things out and I think it's always best for each individual to make the decisions they feel most comfortable with.  With that said, i'm comfortable with continuing to locate and purchase properties that fit our underwriting model.  There may be good deals later after the effects of all this play out, but there's still good deals to be had now.  

Best of luck with your investments!

Originally posted by @Curt Bixel:

I am considering pulling some equity out of my primary residence as well as some rental properties in Columbus Ohio. I spoke with a local bank today that offers a great rate for a HELOC, but I would really like to lock in a low rate for a long time.

I was surprised that the cost for a cash out refinance was so much more than a simple refi. They said there are an additional 8000 dollars of cost for a cash out refi.

I wonder if anyone knows of some better options.

On another note, a few years back in 2012, I had difficulty getting refits on my investment properties because I had 4 of them. A lot of the banks told me that once you own more than 5 properties, they cannot loan to you.

I have a few things going for me including a steady job, years of solid positive cash flow on all of my rentals, and a credit score of 800+

Any advice you might have would be much appreciated.

Hey Curt,

I spent 15 years in lending for companies like Chase and Huntington so I'm pretty familiar with your struggles.

The issue I'm seeing is the type of lending your using.  You appear to be dealing with conventional lenders.  This is not the type of lending you want to be doing for investing.  

I highly suggest using a local bank that specializes in commercial lending. With this type of lending you'll close in an LLC, not your personal name. They will approve financing largely on the ability of the property to perform. You can finance as many properties as needed with this type of lending. Terms are normally based on a 25 year amortization, maybe something that's fixed for 5 or 7 years (which is fine since you'll most likely refinance the debt and pull cash out before then anyway), and often times they can get you 1 year of Interest Only so you have flexibility with construction time.

I use Jeff Chadwell at Merchants Bank a lot and he's excellent.  You can look at companies like The Union Bank here in Columbus, and there's others as well, but that's a good starting point.  

If you need more information please feel free to reach out and I'll help any way I can. .

Thanks!

Originally posted by @Omer Zakai:

Hi All! 

I would love to get referrals for an exceptional Mortgage broker, Insurance Agent and Property Manager that operate in Columbus Ohio and have experience working with out of state investors.

Stay safe!

Omer  

Hey Omer,

My apologies for being a little late to the party here, but I highly recommend using Jeff Chadwell @ Merchants Bank here in Columbus.  He has great rehab loan options and gets deals to the finish line.