Should I take out 2+ mortgages in same year to start out?

Question

As a beginner remote investor living in CA, I plan to visit Ohio next month and talk to realtors, property managers, & contractors. If I find 2 or more cash-flowing properties that can rent out for over $1k/month in class A neighborhoods, do you recommend that I get mortgages for all of them or should I only buy property & renovate that one property at a time? I don't want to fly to Ohio as often as 5 times a year, so I'd like to maximize my first time visit to Ohio. I won't have the cash to pay for the properties 100% so I'll need at least 1 conventional mortgage.

Account Closed · Answer

If it fits your plan and the numbers make sense, I say go for it. Heck, I think I took out 19 mortgages in a little over a year lol

Joshua Myers · Answer

@Remington Lyman and @Zeke Liston, it feels like we're all a bunch of scavengers if we're looking inside 270. I'm in contract for one in Clintonville right now, but that feels like a miracle to have found it. Have you moved your search out to Delaware or Granville yet?

Joshua Myers · Answer

@Remington Lyman is right about the Columbus market. I live on the west coast for a while and there is a perception that everything in the Midwest is cash flowing farmland. If you're looking for Class A you need to be VERY selective because everything is priced to perfection and there is a lot of construction at the higher end of the market. If you're looking still looking at class A you should look into areas that are restricting new construction (or where development opportunities are naturally limited). But in those areas you need to wait out 3-5 of rent increases before you see some reliable cash flow.

There are other cash flowing opportunities, but it's going to be hard to avoid the value traps from 2,000 miles away. Have you looked into Cinci or Indy? Those are decent cities that have better COC return opportunities?

@Remington Lyman and @Zeke Liston where are you looking right now?

There are other cash flowing opportunities, but it's going to be hard to avoid the value traps from 2,000 miles away. Have you looked into Cinci or Indy? Those are decent cities that have better COC return opportunities?

@Remington Lyman and @Zeke Liston where are you looking right now?

Remington Lyman · Answer

@Susan Tan If you find 2 or more cash-flowing properties in Columbus, Ohio in A neighborhoods please let me know how you are finding your deals.

Remington Lyman · Answer

@Joshua Myers I am looking at Franklinton and Mt Vernon right now.

James B. · Answer

@Joshua Myers

Where in Columbus do you invest?

Remington Lyman · Answer

@Joshua Myers Wherever I can find a deal. I have about $150,000 of my own cash I am looking to invest. I also have a bunch of investors money I can tap into if the right deal comes along (like everyone else).

I have been hitting up wholesalers and cold calling when I can, but it is tough out there if you are looking to get 70% of market value. I got a quad about 6 months ago that required a full rehab. 15 Rodgers Ave. I was going to try and make a quick $40,000 on it but after the buyer fell through, I kept it for myself and am rehabbing it.

Calvin Ozanick · Answer

I would say take out as many as you can or as you need to. If you can operate soundly and trust the team you put into place then it should work just fine. I can't leave this forum without putting in a plug for Janesville or Beloit, Wisconsin. The rock county area has some of the strongest returns around, coupled with a growing business boom starting right now. I would love to pick your brain and talk to you about the area, and if you feel the interest in stopping in Wisconsin while in the midwest, I would be happy to show you around the area. Best of luck in your search!

Zeke Liston · Answer

I agree with @Remington Lyman, send those deals my way!

Cameron Tope · Answer

@Susan Tan I agree with @Theresa Harris - don't buy something just to buy it.

I have borrowed several times in a year with no issues. The money is cheap right now, especially if you can lock it in at a 30 year fixed rate, which is why I'm increasing my leverage now.

Either way you're in a good position.

Best of luck!

Should I take out 2+ mortgages in same year to start out?

Should I take out 2+ mortgages in same year to start out?

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