All Forum Posts by: Darrin Carey

@Jacob Danzig and @Carlos Diaz The Dayton market is still low, but is starting to move. There are still plenty of good deals to get here, It's just a little more work than it was the last few years.

You've got a great start here. Obviously, not an immediate cashflow play for you, but could do really well over time.

A few things to touch on. 

• Tax assessed value has no correlation to market value. I have no idea what the market is like in Wichita Falls. (I remember one very hot summer there though)
• The vacancy calculation in your spreadsheet is off. It should be $840 at 5%. You should check with some locals to see what is normal for the area. 5% is very optimistic. 10% is more accepted.
• I didn't see your Home Warranty cost in the spreadsheet.
• Make sure you budget for Property Management after you PCS.

As you're putting your touches on it, avoid carpet, use hard surfaces wherever it makes sense. Ceramic Tile is probably the right choice, especially if you're on a slab. It's more durable, and will greatly lower your long term costs vs carpet. You'll have to look at the competition to see what is being offered.

Tha answer is simple. Stop trying to force everything to fit Fannie and Freddie. They can help when you get started, but they are consumer loans and designed to discourage active investers.

Yes, commercial loans have a slightly higher rate. By then you should be getting better deals that can afford it. And there are no limits on the number of commercial loans you can have. Even when they are on residential properties.

@Walid Elfoly

6.75% is a good rate from a private company for a 30 year loan. 

Most private company rates are between 6.5% and 8.5% for long term loans. The rates are similar for both American and foreign investors. 

Typically the LTV is lower for the foreign investors because credit checks and backgrounds checks are generally not available.

as @Sean Cole said, there is no license required, and the state is watching wholesalers. 

There is set of skills you need to learn to succeed. Negotiating, rehab costs, valuations, marketing, and more. The you have to do it twice, once to find, and then again to sell. Very different from most businesses. 

Many people are attracted to wholesaling because of the low cost to start. However, the skill set needed ia high.

That's the problem with getting info online. You never know what is right.

There is a right way, a wrong way, and an illegal way to wholesale. Since you're in Cincinnati, come to the REIA meeting on Thurs. I'll be there along with some others who do wholesaling. Find us.

We can take a look. A large factor will the be individual value of each property. If we can clear the value hurdle then it's doable.
There are several major lenders won't touch Cuyahoga county at all, so that is somewhat limiting, but not a deal killer.

Thanks @Bryan C.

Other topics to consider:

1. Building a team that understands YOU, and your military obligations.

2. Balancing the military, deployments, family, and real estate.

3. Implementing you military training and experience in your real estate business.

4. What I learned not to do, after I got reamed by the Chief and the Colonel.

5. Build your team when you arrive at your duty station, not when your getting ready to leave.

6. 50% Retirement is NOT 1/2 your pay.

7. Taking advantage of VA loans. When it makes sense, and when it doesn't.

8. Buying the right house for your retirement, every time you PCS.

Just some initial thoughts. All the things I wish I had known while I was active duty.

I think it's a great idea for a podcast.

@John Weis Unfortunately, in Tenants don't put high a value on "utilities included", at least not enough to cover the bills. To maximize the perceived value, Charge X for rent, + Y for utilities. Also, they have no incentive to control them either. A friend of mine has an "utilities included" property, and got an outrageous gas bill for the winter. The tenant turned the heat up to 90, because he was "cold".

Ideally, you would split the utilities out so they're separately metered. However, the best use of the property may be converting it to a Single Family.

Additionally, with Up/Down units, there's always the question of taking care of the grass and snow.

Since we're both local, feel free to give me a call. I've done several small 2-4 units around the area.

@Rick Turman I need to run, but wanted to give you some quick answers.

203K is homeowner only, takes a long time to close, and must use "approved" contractors for all work.

Hard Money is expensive but can be done in 3 weeks typically. I've done them in as little as 5 days, and one right now is taking 6 weeks for an unusual property.

Local banks may help. They will want good credit and income from you.

If you're getting an LOC on your personal residence or an existing property, no one will care what the funds are for.

Incorporating is, or will be,important for you. In Ohio, it's pretty easy, and cheap to do.

You can issue 1099s as an individual if neeeded.