All Forum Posts by: Nicholas Weckstein

Check out Pennsylvania. Most areas can produce a 10% return or better at a very reasonable entry price.

Patrick Britton my advice...be extremely weary of the property manager you hire. If you are hiring one. I got burnt my first time around.

Andrew Johnson good to know. I read so many different things. I guess their are a lot of different loan products out their. I have a great plan. I'm trying to figure out how to make it come to fruition. Unfortunately I don't have much assets other than some liquid cash that I would use towards acquisition/1 multi family home/and some minor knowledge lol. If it was easy Everyone would do it. Thanks again for the information.

Dan Wallace yes that I've read before and many people have told me. I just need to get my foot in the door with commercial properties. Do u recommend being pre approved first and then looking. Or finding the subject property and finding a lender to follow suit ?

Meghan McCallum thank you for the informative reply ! To start it will definitely be below the 1.25 million dollar threshold. How do u recommend I build a relationship with a local lender ? Do they look at a DTI ratio ? I guess most important is that the property performs how it needs to, to meet/exceed the loan terms. That I have the required down payment. And that I'm in overall good standing. For me I feel that their is no other option but to go commercial. Realistically as I add more loans to my debt side of things I eventually will have no ability to finance a 1-4 unit multi. So if I want to keep moving in the real estate world. This is the only option. Thanks again

I've posted on this topic before but I find myself needing to understand this better. And what better place to turn then bigger pockets! I want to get into commercial properties. Mainly apartment buildings. Id like to know what the terms and requirements are. So for example. I find an 8 unit building for say 300k. What is the going LTV ? Credit score requirements ? Property DSCR ratio ? What are some typical loan terms What else do commercial lenders look for. What will it take to be pre approved ? In my mind I'd like to find something with a 7-10 year balloon payment amortization period of 20-30 years. I'd put 20-25% down. I have one multifamily property, so I do have experience. The plan is to keep buying commercial properties. Once their paid off. Cash out Refi and finance bigger and bigger acquisitions. Thanks in advance !

Sam Taylor I think they both have pros an cons. For example if you bought a duplex 2 beds 1 bath each side and each side rented for $700. and say single family 3 bed 2 bath rented for $1200. Now it may seem like the duplex is the better deal but consider this. A duplex means that you would pay 2 different sewer bills (I say this because even if your tenants pay all utilities, which is always the way to go, usually you wind up paying the sewer bill in my experience) a duplex usually will be more costly to insure. Possibly higher taxes. More expenses because their is 2 kitchens etc. Single family rental tenants usually pay all utilities, cut the lawn, shovel snow. And stay longer. Now also consider this. Single family homes usually sell for more and quicker than multi family. As investors don't care about how pretty the kitchen is and fall in love. They look at the ROI. Also their are less investors then home buyers. So your house may sit longer. Just something to think about. They can both be good. Depends on the market.

Maybe rent out your current home and use the 10k for a down payment on a multi family owner occupied. Stay for a year and move out. I myself would like to get into flipping but I want to gain more knowledge on costs and estimating first.

Eric Foss look in Pennsylvania. Their are properties in that price range. You may need to do some work to them. I'd say in PA you can get into a nice place that is in a decent neighborhood for around 50k. And probably see an 8-10% cap rate. Currently I'm looking to buy a duplex or a nice sfh in the Scranton area for around 50k. I don't really see the area appreciating but it's a stepping stone in my long term plan of moving to a big commercial apartment complex. Theirs some nice areas just outside of Scranton. That will help you avoid some BS from the city codes and regulations. PM me if you want to talk more about that area.

Stephanie Potter how would I go about finding out if it's considered rural ? Most of these properties are 50-100 years old. I have my eye on a 5 unit that is in a desirable area and looks to be in good condition.