Lots of rental related questions + lending in the 614
Hi BP,
Few questions on rentals that I cannot find the best answer/answer I want
Brief background info: about a year ago we ( girlfriend and I) bought a house we were going to flip. We pretty much re did everything our selves and have a few tiny projects left before we are ready to sell in the spring. The house is located in hilliard beacon and got a great deal and looking to sell for a 30-40% ROI. Once we do sell we would like to get a duplex or two in one of developing communities around Columbus.
Now we cant figure out the best way to go about getting lending. I am technically not working as I follow my dreams and am working on building another business so my part of the lending is basically not there at all as I assume I would be more of a liability then help as the only thing I have asset wise to my name is my savings and this house. With that said would it be better to use this house as a collateral to secure another property then sell. But would that then lock us into this house and not be able to sell? Or should we just look for a lender willing to take on the risk as I am almost 100% sure our previous lender will not. we do both have of FHA's left but would like to save those for when we can buy something large.
Question 2.
Are we being naive thinking lower income rentals will be a good thing for a first time landlord. I've heard tons of horror stories about lower income rentals. But we are both young and the risk/reward seems to be there much more in lower income rentals then it does from buying much nicer properties. I for one am pretty handy did 99.9% of the work in our flip house and I currently have the time to fix rentals. My own concern is getting into lower income properties my ROI is going be destroyed due to tenants destroying the place. We are currently looking into section 8.
Question 3:
long term tenants, one of the properties we've been looking at has a tenant that's been there for 20 years. From past experience can/do long term tenants cause more issues then its worth. The idea of someone that's been there for 20 years sounds great but it also sound like not being able to easily raise the rent as rental prices go up.
also if any one knows a lender/ are an lender and want to talk just let me know
Thanks for help/suggestions