All Forum Posts by: Craig C.

Hello BP!

I've got another question, which summed up is: How do you decipher if there is a good market in an area?

My hometown is kind of a ghost-town that has taxed itself to death, so I've been looking at my neighboring towns/cities. My neighboring town has alot of real estate for sale, but from what I have seen in this city, there's alot of houses for sale, more than a fair share of slums, duplexes and other properties of the like so I am a little leary of trying to do business there. But the flipside is, it looks like there's a positive population increase of 9% since 2000...

Should I be leary? Or am I doing this all wrong?

First question: I've not seen the inside yet. I just saw the listing today and drove through the neighborhood while I was in the area.

Second: I am assuming between $10, and $13k in repairs/renovations until I see otherwise later this week.

I found a listing in a local ad, and decided to try and find it online as well. My neighboring town has a Duplex listed in this link:

http://www.zillow.com/homedetails/434-S-State-St-Marion-OH-43302/97159404_zpid/

Basically, asking $66k, 3,900 Sq. Ft., Duplex. Naturally I am excited about this listing, but I still don't know enough to really try and sink money into it as an investment property.

This has apparently been for sale well over a year now, and I actually drove around the area, it appears to be average for the neighborhood it is in in terms of price.

My question is why has nobody jumped onto this opportunity if it's so appealing? I mean it's appealing to me, but it's bound to be because I don't have knowledge of something. What are your thoughts of this listing?...

Thanks John!

And also thanks Michael and Joe!

Your inputs are greatly appreciated!

I have thought about it. The problem is, my understanding of this particular loan is that it is only a 1 time thing, and I'm actually trying to hold onto that for something else further down the road. I could be mistaking, but one rule of thumb for me is if there is a question in the mind: Automatically assume the answer is not what you want it to be until you have concrete evidence otherwise. In this case I automatically assume this is a one time thing, and I need to keep that in my back pocket for right now.

Hey Brandon, great to hear from you, reading your blog about "How to start investing in real estate at a young age" is actually what inspired me to join!

Thanks David, I really appreciate it!

Ben, I will most likely be in touch very soon, thanks!

Okay, so I just finished my introduction...

I am aware of 2 important things to have when investing:

#1: Time,

#2: Money,

[Questions are at bottom of page]

During my time in the service, I had a secure and steady income but no time. Now I am out of the service, I have an inconsistent income between job-hopping, job-hunting, and relocating. Right now, I really like where I am at as far as a geographical location is concerned. But the problem now is I have more than enough time, but no clarity on the money.

I'm not exactly afraid of commitments as far as finances go, but working a job just to keep on top of bills your always Just-Over-Broke, and your exhausted when you get home and you always want to get some rest so your prepared for a better(or easier) day at work the next day, elsewise you'll be first in the cross-hairs on the at-will list for companies to lay off or fire.

In the last 2 weeks, I'd say I've accumulated about 100 hours worth of searching real estate ad's, reading books on real estate, forums and the like, and I am leaning towards an FHA 203k loan, or something similar such as owner financing.

As it is right now, I am set to start my new J.O.B. next week, but I am expected to work nearly 70 hours a week my first few months there.

I think a "stupid" question is far better than making a "stupid" decision! This having been said, since I am bouncing job-to-job and job-hunting right now, is there anyway to get a small duplex or triplex financed when you cannot show a consistant income? The only consistency in my income will be after I have a property to rent and generate income. On a recent negociation with a local bank, I was able to clearly display all pertaining liabilities and assets, with a before and after outlook on both my end, and the bank's end. To sum it up, a 7 year loan could have been paid off in less than 16 months, with a ROI of 25% for the bank, and I would still have been well off, and able to actually pay cash for my next property within 12 months between how the leases were written and how quickly I was(or rather would be) able to fill the vacancies! And that was with all expenses accounted for

"Stupid" questions list:

Q1: How can someone purchase a duplex or similar item without a consistant income or J.O.B.?

Q2: After property financing is complete, how can I keep a sum of the cash for emergeancy repair's and the like?

Q3: Are there exemptions available for housing certain class's of people?

Q4: If I also finance a small business with a business loan and qualify for an LLC, can the rental units be covered with the LLC also?

A little insight would be awesome....

Thanks!

Hello, my name is Craig. I am trying to take my interest to the next level by creating an account here on biggerpockets.com, and dedicating my free-time to learning as much as I possibly can about real estate investing.

Right now, I am north of Columbus Ohio, just recently separated from the armed forces, lived it and loved it and would do it again in a heart-beat.

I did a fair amount of reading my last several months in the service, as well as the short time I have been out of the service. And I am trying to learn more about an entry point, or starting level in real estate, rental properties and the like.

I did work briefly as a sales-man in El Paso Texas, long enough to learn the basics of salesmanship, and decided not to go all in on memorizing the specifications on the products I was supposed to be selling, and rehearsing the companies sales pitch for door-to-door sales, or telemarketing.

The problem I am having isn't so much a business plan/game plan, as it is initial financing to get the ball rolling. I've been out of the service for just shy of a year now, and have learned to survive on the minimal, and by minimal I mean even less than what most would consider the bear essentials. This having been said, I am beyond just confident that I can swing what it takes for being a real estate investor.

My first goal I am trying to achieve is to find a Duplex, Triplex, or Quadplex, and rent out the other area's. I am skilled, ready, willing, and able to maintain any appliances that would come with the property. I've also already written lease agreements as a guideline for the specifics of my goals, and already it's appearing to be a flawless plan! Listening to both cynic's and fanatics, I've found I am a healthy median somewhere between the two. Though I do believe there's more to be learned from a fanatic than a cynic.

Anyhow, this is my introduction, never done this before so I apologize if it's less than adequate.

I will be checking out alot of the forums here, and I am looking forward to hearing insight and feedback from everybody.

Thanks!
Craig.