All Forum Posts by: Austin Largusa

@Kevin Roth, here is a solution for you. Similar to @Wendy Patton's suggestion, but you don't actually have to wait 3-6 months. If you buy with cash, there is no required waiting period to get a mortgage after the purchase (google the "delayed financing" exception). With this rule, you can borrow 70-75% of the appraised value, but not more than the price you paid.

You indicated this is an awesome deal, so let's say the property appraises for more than $120k. You privately borrow, say $80k, and put in $10k of your own money. Purchase the property with that cash. Then, after the purchase, you obtain a $90k mortgage -- to pay back the private loan and get your own cash back. You now have an income-producing quad with none of your own money invested (except for closing costs).

@Erin Garcia in Chicago, check out neighborhoods like Jefferson Park, Portage Park, McKinley Park, Canaryville, Little Village, Bronzeville, and Woodlawn like you mentioned. It's all very block by block but all of these neighborhoods are starting to appreciate but still have good/low priced deals.

I'd also recommend checking out Rockford, IL if you're looking just outside of Chicago. I'm from there and in the past 5 years there has been a ton of development downtown. Several neighborhoods surrounding downtown have low priced rental properties that will cash flow well. I've been eyeing the market there for a while but I'm currently focused on my house hack in Chicago to start... there were some good deals that were hard to pass on. 

I am new to investing and looking in the Cleveland area. This thread has a wealth of information!

Is anyone able to recommend a good real estate agent(s) in the area that work with out of state investors? Thank you!!!

@Sanae Trotter   I have a lender that will do mortgages under 50K in the midwest that I have referred several people to.  

P.S. Welcome to BP!!!

@Michael Choe    Please message me BEFORE you go to Cleveland. I have rentals there and have dealt with three different PMs so I can perhaps be a resource as to who to avoid. I also know some investor friendly agents there as well.