All Forum Posts by: Denny Robert

Hi @Zane Belden. Feel free to call or email me and I would love to help you out. I've bought, sold, and helped clients with multi's in the area.

Chelsey Richardson FHA lending requirements are set by FHA. I believe it's a minimum of 640 credit score, but not sure on that. I completely recommend the FHA financed multi family approach. The market here in Phoenix is hot so you screaming deals are hard to find, but they are out there. My client is negotiating on a triplex now that is $60k-$100k under ARV comps.

Aaron Zamudio the best advice I can give is: - Learn how to evaluate deals. This will give you the ability to evaluate submarket trends, and what is a good return for that area. - Think about what kind of tenants you want to work with. Section 8, college students, low income, average income, high income? This will effect where investing makes sense. More difficult areas tend to offer higher returns but take more work.

Most buyer agents don't charge 3.5%, they receive whatever is in the MLS plano. In my market this is usually 2-3%. Sometimes there is a bonus offered (full price offer by a certain date or something like that). If my client received an offer from a buyer agent expecting my seller to pay them a 3.5% commission, I would advise my client to counter with price they want, plus an extra .5% to pay the buyer agents extra fees.

It wouldn't make sense to charge a rental fee for a unit which is occupied. If you find a property that isn't occupied and you intend to have him fill it then there is typically a rental commission/fee. In some markets that is 1 month's rent, in more competitive markets it can be less.

@Craig Micon

Great first post! Setting an incredibly high bar!

I would love to hear from St. Louis and Kansas City folks, as I know those markets are popular with the cash flow folks.

It would be awesome to see these projections broken down to best/worst appreciation markets and best/worst cash flow markets.

Another thing we should remember is each market has submarkets that do better and worse. I know St. Louis has areas I wouldn't take free property in.

The thing about being devoted to not taking a loss is there is also an opportunity cost. What could have been regained? Probably easier said than experienced.

Though I get it. I have a friend who bought $1.5m of lots down in Casa Grande. He is still sitting on them as well. Someday they will make him a bunch of money.

Where they are? That's the biggest question. There is plenty of dirt for sale in AZ, but if isn't close to town it'll sit or take a particular buyer.

Paul W. I do a security deposit equal to one month rent. I do a refundable cleaning deposit and make it clear it has to be move in ready for them to get it back. For screening I use Cozy.co and they pay online directly at the application. I believe it is $39.95 for criminal and credit.

Brian, does your lender and agent have multi family experience? Jud Holmes at Nova Home Loans has done my and my friend's/client's FHA owner occupied multi-families and is familiar with the process. A lender and agent experienced in duplex, triplex, and fourplex buildings would tell you the lender will count rents towards your income, allowing you to borrow more. $200k would make it difficult to get a decent multi in Phoenix/Scottsdale/Tempe, but with a little more you can. What areas are you looking? If you are looking strictly at single family another interesting option is to look at homes with guest houses. These can be rented out and get you an extra $500-$1000/month depending on area, size, and condition.

A condo conversion? That's pretty awesome! How many units?