All Forum Posts by: David W.

I locked in with Chase on 2 duplexes this week at 5.125%, no points, 30 year fixed. You can do better on your rates which should help your numbers.

@David W. - I love the ambition to get in the game, but I agree with most of the forum. If you're excited about 8-10% you're better off putting your 25k towards private lending and not incurring the headaches.  

Also, if you are not buying at a discount or providing any/much value-add, you don't have a way to create equity and refi our your original 25k.  It's just stuck there and thus it's not a scalable model.  

A few minor more tactical points -  is the duplex metered where you can even make each tenant pay for water, electric, heat?  Is this the norm in the area for a renter?  Also, Columbus, OH can get about 2 ft of snow per year so run your landscaping costs through the year to cover snow removal.   

Basically what everyone else had said. What is your current RE strategy? Is it just cash flow? Value-add? BRRRR? How long is it going to take you to raise another $30k? By the way, you haven't "bought" this duplex yet (thank God).

@David Waddleton what made you decide on Columbus? I would recommend Mesa, AZ and Cleveland OH.

Nope.  Keep looking.  You can do better.  Don't be in a hurry, and don't let the competition push you.  Just keep inspecting.

@David Waddleton David if this was a good deal the bank would be giving you a really good deal on a loan from what I can see they think it's a bit risky so they're protecting themselves. Seems like you're starting out over-leveraged I like someone else said your cash on cash return isn't that great.must have some future location opportunity or something that you haven't disclosed walk away and find a better deal.

I locked in with Chase on 2 duplexes this week at 5.125%, no points, 30 year fixed. You can do better on your rates which should help your numbers.

 What changed with your property manager's estimate, other than you balking at the original deal? In other words, why wasn't the PM "confident" about $700 back when they told you $650? Not for nothing but the PM is highly incentivized (i.e. they get nothing unless you buy) for you to buy this house. I'd want to know exactly why they are so confident now but weren't when you first asked them. Ask for hard evidence, not just their most recent opinion.

My long-winded way of telling you to do your own research and rely on that. Go on Zillow/Trulia/Redfin tonight and look at all the comparable 1 bedrooms in your area to make your own determination as to what the unit will rent for. You don't want to be in a situation where you HAVE to rent it for $700 to feel good, but the market is only telling you $650 or less.