All Forum Posts by: Eric Morel

At least I know a new investor is in my spot. My credit is mid to high 600s which I was told was good enough. I looked at over 40 lenders. They ranged from conventional, DSCR lenders, and Private Money. I was either flat out declined or given terms that only worked for the lender. IF you want cash flow, new construction is not the way to go unless you buy something you can househack with.

Work on credit, capital, and learning 1-2 strategies that you are comfortable with to start.  For example there are turnkey homes that can offer some cash flow and limit repairs.  There are sites that you can find investors unloading rental properties.  Either they are tired landlords or wanting to capture their equity.  They may be in need of a lot of work or are fully rehabbed.  Also, define your location.  A poor location can affect  appreciation and the ability to keep it rented. 

I am estimating I am 6 mos out from investing, so I am just learning everything I can in the meantime.  Rules out sellers finance and some of the other creative ways to finance for now, but that is an option as well.

Maybe because I am so green to REI. I have not seen a true wholesale deal yet. Thus, I have decided to focus on markets that I can find a rehabbed property in my price range that generates cash flow and potential appreciation. Looking in 3 star neighborhoods or above. looking for 100k or below. This price point prices me out of some of the larger markets, but up and coming or secondary markets can work quite well for me. I honestly look for buy and hold properties. I may over pay a lil, but worth it to e not to get a sucker deal.

That limit is only on conventual loans. DSCR loans or something like that has no limit. That is based on the cash flow of the property. The biggest downside is APR is slightly higher and depending on your credit score can require 35 to 50 percent down.

@patrick bavaro sure I would be open to speak to them

Thank you all for feedback

@Bruce Woodruff exactly

I am preparing to launch a new Real Estate company. I am researching markets, building my team, and looking at strategies. When I started I was against apartments or Condos. However, when I plug in example properties into my calculations to see if it will cashflow. Condos and apartments du to lower price points pencil better for me. I am not ready to do the BRRRR method or to do crazy rehab. Starting conservative with turnkey or properties that might need some cosmetic fixes but are pretty much rent ready. I know I pay a little bit of a premium to do it this way.

I am finding more condos and apartments in my price range then SFH. The biggest difference though is the neighborhood. Most of the homes are in 1 star or two start neighborhoods. The condos. apartments are in 3 star or 4 start neighborhoods. I know HOA fees or other fees due to the property can be a drawback to condos/apartments

Anyone else do condos and have success for LTR???

I am working that angle also.

If you think he will pay rent, I would say just do the Market rent.  Will give you time to find another tenant.  Evictions can take time and by the time you get approval it may be three months down the line.

I am in the process of buying my 1st rental. I am not ready for BRRRR method as of yet and not ready to take on a home that needs a lot of work. I was thinking of a turnkey or a home that just needs cosmetic updates. Places like roofstock and MI 9 Morris investments come up quite a bit. All the reviews I find are from 2019.

Makes me think I need to find a Realtor that knows the market I want to work in and go from there.   I know that no property comes with no risk and zero repairs. Just want one that I can go a few years without a major issue or the bet chance of that.

Any thoughts on companies like this?