Evansville, In- looking to buy first rental

5 Replies

Hello, I'm looking to invest in my first property within the year in Evansville, In. I attended school there and know the area fairly well. Have been researching areas and I think I'm going with Evansville. I am interested in talking with anyone you may know who got the ball rolling. I am a licensed agent in California and also work for a property management company, but still a newbie. All advice is welcome. Right now I have about 5k to put down and am saving about 1k or a little more each month. I would love to buy 2-4 units.  Will possibly be able to move in and that would help my financing options, but currently located in San Diego. so might have to bite the bullet and do 20%. Where to start first?

Hello Tinley!  One of the answers you are looking for an answer for a question that will get several responses.   The first piece of information I would give you is to figure out how to make more money and how you can save more money so you can in a place worth over about $110,000 because that is about the most you can spend on a "house hacking" loan right now with which is what you want. 

When you figure out how to earn more money and save money and only buy anything else unless you buy  with debt that is something  that is making money and is almost returning almost the same as a home  as will make as much as a $110,000 home in or around San Diego that has several units or whatever makes you happy.

The more units you can buy, the better it will be for you. There are several options at your level. One is to find a good that does not need much work to get conventional lending which may be the only way to get a "house hacking" loan. Another option is to find a "cash rich" Partner so you can use his cash to qualify for a conventional FHA insured loan. You will get his help to qualify for a FHA loan and the repair/rehab work the home may need.

You may have to give away about 1/2 of any profit but something is better than nothing.  Another way to get a piece of property is through a Private Money Loan.  The good part is that it is typically more negotiable than a conventional loan.  You have to incur a larger interest rate that is a little higher.  It is typically more about the project and not you like a conventional lender typically is.  They typically will lend you the money lender needed for repairs/rehab too.  This is usually a short term loan and will require you to refinance after you have done the repairs/rehab.

Another chance would be if the owner does your financing.  You have to show them their benefits on paper like the more profit and the spread out of the loan life on their income reported to the IRS each year.  Another option would be a lease/option deal where you rent for a while and then have the option of a purchase date and the price.  You would have to ask the current owner will do that.

That is about all the options I could think about.  Who am I and what makes me worth listening to?  I do not have that type of experience but I am effected by my physical condition and not having the ability to go to work because of some medical issues I have.  But I have about 30 years of construction management and real estate licensing.  I am currently 61 years old and I was born and raised in Dallas,Texas.  I've been studying real estate investing full time for 3 1/2 years, 7 days a week, that includes book reading about completing one about every 2 weeks.  I plan on doing that when I can walk again.

If you think I can help you in anyway, please contact me through this site.  I am on here just about every day.  Good luck to you!

Will you be in area for a visit anytime soon?
I have lived here for 10 years and would be happy to show you around some of the new/fun areas and discuss ideas.

Hey Tinley! That sounds very exciting! I’ve lived in Evansville my entire life (with the exception of a stint for the military) , invest here and also sell real estate here. I’d be glad to sit down with you and help you come up with a plan that fits for what you’re looking for. When I was in college (at USI here) I bought a 4 bedroom house and rented the rooms out to pay for the mortgage so that I could “live for free” if you go that route we definitely need to talk because I screwed that up every which way you could. So you have that route and if you were planning on living there could get a conventional 3% down deal or 3.5% FHA. Either way it sounds like you’ll need closing costs paid by the seller (that’s actually not uncommon in our area and range about $3,500-4,500 in that price range) or you could get into a multi family property. At that price point it’ll probably be a duplex/triplex and potentially a house conversion multi not a purpose built. Sort of depends on what your goals are for afterwards. I always tell everyone its way easier to get “into a deal” than exit one so thinking about who would come in to buy it after you is key, after all if the person we have to attract to come buy the asset is someone who lives in San Diego and going to school here and wants to invest in real estate, by way of example, we may be waiting a bit for that. Obviously the numbers have to make sense and it has to cash flow but thats all pretty easy to figure out. The quick and dirty I use is the BP numbers so easy you can do them on a napkin. Super pumped that this is on your radar and you can start this journey! It’s life changing!

Ryan- Not for a few months, but I'd love to get together and connect when I'm in town.

Casey- I'd love to talk and pick your brain. I'm curious why living in your home and renting rooms out was a mistake. I would love to get a 4-plex and live in one of the units, but right now my budget is more inclined with a duplex.