All Forum Posts by: Eric James

Are you looking to rent to college students?

You need to remember that the selling (not the listing) prices are the market value. It sounds like you may need to find someone willing to sell below market value (not easy to do, but possible) or start looking in another area where the numbers work better.

@Luka Milicevic did you purchase a mailing list? Did you target multi owners with certain characteristics (age, income, etc)? Thanks.

Thanks @Luka Milicevic . Even if it takes 6 months to find deals like this, that's pretty good. The mailings sound like an interesting idea, and are something I've used in a different way for my W2 job. Do you have any recommendations for doing mailings to multi owners?

Thanks everyone. My wife and I would self manage if we can buy a place close enough to where we live, which would probably be more likely with 2-4 unit properties. If/when I get into the multi unit arena I will have a learning curve regarding commercial financing (and other issues related to multis). I know next to nothing about commercial financing. I've spent a little time looking at small complexes listed for sale, and the only ones with cap rates >10% are in small towns and have low occupancy rates. I'm wondering if cash flow and ROI are more likely to be higher with several 2-4 unit properties than with a small complex. Is that common?

Great work @Luka Milicevic and intestine story. Do you have any thoughts on how you could decrease the your time to find another deal? Return on time is a factor to consider. You also mentioned not saving any W2 income while you were looking for this deal. Why was that?

@Brent Coombs . I don't think I have said I can't find properties that cash flow.

I like the 1% criteria as a rough guide, but also keep in mind things like property taxes, state (and local) income taxes, and insurance. These can vary quite a bit and will affect your cash flow. I even know of a college town in NY that enacted a 'landlord tax'.

@Brent Coombs mortgage broker quoted 30 year fixed at 4.125%. Is it that a lender has to require 25% down if they are lending at a certain lower rate?

@Andrew Postell , a mortgage broker I am currently using to purchase a SFR told me if I would later like to purchase a 2-4 apartment property I could finance with 20% down. Do I understand you are saying he is incorrect?