All Forum Posts by: Dave DeMarinis

Bill Warner at BW Warner Inspections & Thermal Imaging Services in Dayton is EXTREMELY KNOWLEDGEABLE and thorough. I don't know about cost as we do our own inspections in Dayton but he's been very helpful to me and many other investors troubleshooting issues.

@Wei Jie Yang @Patrick Bavaro I can't think of any good reason to use HML on a turnkey purchase (and I'm a lender!) HML is great when you are buying below market or have a plan to force appreciation and ideally you are doing both.

@Tom S. Such a powerful post in only 4 sentences. The two things that sink so many people starting out - not enough reserves and not understanding the cash flow required to float a rehab. Well said!

@Artur A. you are wise to consider multiple exit strategies even for an owner occupied home. I think you meant to include PM at 8% + Vacancy at 8% which makes sense so you are missing $184. Common items you left out are Repairs & Maintenance and CapX reserves. By being in a condo association, you should have some advantages if they are responsible for external items (roof, driveway/parking lot, etc.) but you will still have internal items. 

Note you will also benefit from the Principal pay down happening each month - which will get more substantial in the future (check the amortization table on your bank rate sheet). If you can benefit from the depreciation, that will also be another benefit. 

Whether or not you should sell in the future or rent (when the move might happen) that depends on the market rents and value at that point of course.

@Dace Hueftle There are some great options. I'll DM you.

@Nathan Scott There are a number of financing options for you. For acquisition and renovation - you can use Hard Money. This would be if you plan to BRRRR with significant renovation and wanting pull out forced equity. If you are ready to go with 70 to 75% LTV of your purchase, you don't need Hard Money and go straight to long term financing.
For long term financing, you can get a portfolio loan based off the cash flow of the property. Your current loan and DTI will not affect this investment loan. (As long as you FICO is 640+) DM if you need specifics.

@Matthew Terry What market are you seeing updated systems for $90K, good neighborhood and 1.1% R/V? You can get that with value add in those markets easily but in turnkey or MLS, you are probably missing something.

I actually invest in the Bay Area (supposedly impossible) as well as out of state in Huntsville and OH (also supposedly impossible). There are successful strategies in every market and geography. Pick what you want to do, talk to people doing it well, develop your plan and execute and you will do well.

@Julian Mills What is the ARV and expected loan amount? Smaller loans generally will have high percentage rates and fees because the administrative work is the same for a larger loan balance. Depending on your parameters, I can forward some options.

@Winston Covington I sent you a DM. There are some very good options for what you are trying to accomplish.

@Amaju E. What is the zip code? I think you should do a minimum of 10% for vacancy, CAPX and repairs. Also ow did you calculate your property taxes. They look OK but I'm curious. Is there one, zero or two driveways? Most landlords won't provide snow removal for a duplex. Two things I'd focus on here.

1. Is the property manager charging you 10%? If so, you will pay higher because they probably charge 50% or 100% for placing a tenant, possible upcharge on repairs, etc. It is tough to actually achieve 10% PM in Dayton if this is your only property.

2. CapX (and repairs) usually violate the % rules on low priced properties. You should do the following exercise. Add or eliminate categories and judge your costs. As an example, this would $196/mo ($2369/12) for CapX and you should increase by 2% per year.

Expected life is in years and there is only one roof but two HVAC as an example. The last column gives you your amount you should save annually for that item.