All Forum Posts by: J Castro

Hey @Xavier Vazquez welcome to BP!

Congrats on your decision in buying your first house! It's the best decision and investment you'll ever make. There is nothing like real estate investment (done correctly). 

As a first-time home buyer you can take advantage of first-time buyer program (low down payment) options, such as an FHA loan, to purchase a multi-family property (with up to four units), as long as you intend to occupy one of the units as your primary residence. Purchasing a multi-family property as your first real estate investment offers several advantages over a single-family home, particularly for those interested in building wealth and generating income.

Owning a multi-family property allows you to generate income from multiple units, providing a more stable and potentially higher cash flow compared to a single rental income stream from a single-family home. If one unit is vacant, you still have income from the others, which can help offset expenses and mortgage payments. This reduces the risk of a complete loss of rental income during periods of vacancy. 

Live in one unit of the multi-family property while renting out the others, effectively having your tenants help cover or even entirely offset your mortgage payments and other living expenses. This strategy, often called "house hacking," significantly reduces your own housing costs and allows you to build equity faster.

First thing you'll want to do is seek for a local buyer's agent that can provide you valuable insights into the area, assist with property searches, and help with negotiations. Than you'll need a mortgage broker that can help you search and navigate the best loan option for your financial situation to determine the best financing options and get pre-approved for a mortgage. 

Here in BP you'll be able to find both realtors and mortgage brokers that can help you make a well educated decision. Best of luck!

Hey @Eric Widmeyer welcome to BP!

You're on the right track. We've been hearing from other investors in the multi-family sector that West Toledo, Old Orchard, and areas around Ottawa Park have a solid rental demand. We're currently working on a file for a duplex in West Toledo, which should be closing within the next couple of days.

Toledo, Ohio has garnered significant attention as a strong real estate market, attracting investors both locally and from out of state. This is driven by factors like affordable housing, appreciation in home values, and economic growth. In fact, Toledo topped the WSJ/Realtor.com Housing Market Ranking in April 2025, based on these criteria.

Like @Arman Ahmed stated "With your budget, you can definitely land a 2–4 unit in a B/C class neighborhood that cash flows, but it’s very street-by-street, so due diligence is key." 

What I always suggest investors new to a market or unfamiliar with the market to team up with an investor friendly realtor in that market. Don't hesitate to seek advice from a financial advisor, especially when starting out or facing complex financial decisions.

Best of luck in your venture!

Hey @Brad Braunstein welcome to BP!

Buying an investment property in St. Augustine, Florida can be a worthwhile investment, but it depends on individual circumstances and priorities. Based on current information, St. Augustine, can be a promising location for real estate investment, especially considering its blend of historical charm, attractive amenities, and growing popularity. 

The influx of tourists (over 2 million annually) creates a robust short-term rental market, while the expanding economy and increasing population contribute to strong demand for long-term rentals as well. Well-located vacation rentals can generate significant cash flow. 

With that said, the success in real estate investing depends heavily on understanding the specific dynamics of the local market, including neighborhoods, development trends, and regulations. This is particularly crucial in areas like St. Augustine where there's a strong tourism component and specific zoning laws for vacation rentals.

It's crucial to carefully research into specific neighborhoods, market trends, and potential risks, particularly related to property taxes and insurance, is recommended. Consulting with a local investor friendly real estate expert can be invaluable in navigating zoning laws, identifying promising investment opportunities, and understanding the nuances of the market. 

Best of Luck!

Hey @Andy Yeoman

The majority of DSCR loans come with prepayment penalties. Prepayment penalties in DSCR loans are most commonly structured as "step-down" penalties, meaning the fee decreases over time. Common structures are...

   - 5/4/3/2/1: A 5% penalty in year one, 4% in year two, decreasing by 1% each year until the penalty expires after five years.

  - 3/2/1: A 3% penalty in year one, 2% in year two, and 1% in year three, with no penalty thereafter.

  - Fixed penalties: Some lenders may also offer a flat percentage for a set period, such as a 5% penalty for five years.

Some lenders offer no-prepayment-penalty options, but these usually come with higher interest rates or upfront fees. Some states also have restrictions or prohibitions on prepayment penalties for certain types or amounts of loans.

Many investors choose the prepayment penalty structure that aligns with their investment strategy, for example...

   - Long-term Holders: A longer penalty period (like 5/4/3/2/1) can result in a lower interest rate.

   - Short-term Holders/Refinancers: Choosing a shorter penalty period (like 3/2/1 or even 1/0/0) may incur a higher interest rate, but can be more cost-effective if you anticipate selling or refinancing within the penalty period.

It's crucial for you to understand the specific prepayment penalty terms outlined in your loan agreement, consider your investment goals and anticipated repayment timeline when deciding whether to opt for a lower interest rate with a prepayment penalty, or a higher interest rate with no penalty. It all really comes down and depends on you and your exit strategy (Long-Term Hold or Short-Term Hold).

Hi @Sheila Zarate Maldonado, welcome to BP.

I'm sure you'll make some good connections here. I've DM you my information for future reference, as we have flexible loan programs for investors, that may be a fit for your clients.
Looking forward to connect.

Hi @RebeccA Costa welcome to BP.

Investing in rental property in the Cape Coral-Fort Myers metropolitan area (33903) requires careful consideration of the local market dynamics. While the area offers potential benefits like strong rental demand and a business-friendly environment, the elevated vacancy rates and fluctuating rental prices warrant thorough due diligence and a well-defined investment strategy.

Fort Myers experiences steady population growth, leading to a consistent demand for rental housing. But like any investment opportunity you also have your challenges and risks, high rental vacancy rate in the wider Fort Myers area suggests potential difficulty in securing tenants and consistent rental income.

 The area is currently a buyer's market, meaning lower prices and longer time on the market for homes. This could be advantageous for investors seeking to acquire properties at a lower cost. While potentially beneficial for acquisitions, a buyer's market might also signify a slower rate of property value appreciation. 

As an investors you should focus on properties with desirable features, conduct comprehensive market analysis, and consider utilizing professional property management services to maximize your chances of success.

Hi @Eric Widmeyer welcome to BP.

The real estate market for 2-4 unit multi-family properties in Dayton presents both opportunities and considerations for investors in today's market. Dayton offers a relatively lower barrier to entry for investors compared to other major cities, with a significantly lower median sale price than the national average.

Investing in 2-4 unit multi-family properties in Dayton, offers a viable opportunity for investors seeking to enter or expand their real estate portfolios. The market demonstrates potential for both rental income and property appreciation, supported by an affordable entry point and a generally positive long-term outlook for the multi-family sector nationally. However, navigating the current seller's market, managing rental growth expectations in the short term, and understanding the impact of economic factors like interest rates are crucial for success.

Unless you are familiar with the market, I would suggest teaming up with an investor friendly realtor, that has market knowledge in assisting you navigate the B/C areas. Conduct thorough research, including detailed analysis of specific neighborhoods, property conditions, potential rental income, and property management costs, to identify suitable investment opportunities within the Dayton market. Consulting with local real estate professionals and considering professional property management services can also be beneficial.

Hi @James Cunningham welcome to BP. 

Embarking on your real estate investment journey can be a bit challenging at times, but nothing in life is more rewarding than overcoming and beating the odds of a challenge.

Real estate investing can be a rewarding path, and approaching it strategically is key. Like @Drago Stanimirovic said "You're not behind, you're just stepping into your lane now". I'm sure here in BP you'll find all the guidance and support you'll need to educate yourself continually and understand different investment strategies.

Remember, real estate investing is a journey, not a sprint. Be patient, stay persistent, and enjoy the process of learning, growing, and building your investment portfolio.

Hey @Hayden J Trossman welcome to BP.

Ultimately, whether duplex house hacking is a great first deal depends on your personal financial situation, your comfort level with landlord duties, and your long-term goals in real estate investing. Careful research, financial planning, and understanding your local market conditions are essential before making a decision.

It'll be wise to conduct a thorough cash flow analysis to determine the property's profitability. This involves estimating gross income (including rent and other potential revenue sources) and deducting all expenses, such as mortgage payments, property taxes, insurance, maintenance, and potential vacancy costs.

Research specific Cincinnati neighborhoods to identify areas with high rental demand and growth potential. Consider factors like proximity to amenities, schools, and transportation when evaluating the duplex's location.

By carefully researching the Cincinnati market, conducting a thorough cash flow analysis, and potentially seeking expert guidance (good start would be an investor friendly realtor), you can make an informed decision about your duplex investment and potentially enjoy the benefits of long-term rental income.

We own rental properties ourselves and to minimize tenant issues on move-in day, we as landlords should ensure the property is thoroughly prepared, communicate clearly with the tenant, and handle any necessary paperwork efficiently. This includes performing necessary repairs, conducting a move-in inspection, and clearly outlining expectations in the lease agreement.

In your lease agreement you should consider outlining (if you haven't already) the following...

1- Property Preparation:

   - Thorough Cleaning and Repairs: The property should be spotless and all necessary repairs completed before the move-in date.

   - Code Compliance: Ensure the property meets all applicable building, housing, and health codes.

   - Safety:Verify all smoke detectors are functional and that the property is free of hazards.

   - Appliances and Utilities: Ensure all appliances are working correctly and that utilities are set up and ready for the tenant. 

2- Communication and Paperwork:

   - Clear Lease Agreement: Review the lease agreement with the tenant, highlighting important clauses and responsibilities.

   - Move-In Inspection: Conduct a move-in inspection with the tenant, documenting the property's condition and any existing issues. This protects both the landlord and the tenant.

   - Key Exchange: Ensure the tenant receives all necessary keys and access information.

   - Emergency Contact Information: Provide the tenant with emergency contact information for the landlord or property manager.

3- Addressing Potential Issues:

   - Tenant Concerns: Address any tenant concerns or questions before or on move-in day.

   - Documentation: Keep thorough records of all communication and transactions related to the property.

Something else to address in your lease agreement and being very specific and clear is the tenants responsibility to the property such as...

   - Maintaining the A/C unit filter clean / replaced.
   - Returning the unit in the same condition as given to them, including cleaning and paint.

By proactively addressing these areas, we as landlords can significantly reduce the potential for move-in day issues and foster a positive landlord-tenant relationship. This are things we have learned and tried to perfection with time. Now with rental properties across multiple states, we've had expand and hire management companies. We've managed to align their policies with ours making sure our properties are being managed and maintained within the same guidelines.

If you feel your lease didn't cover all of their claims clearly, I will agree with @Jeremy Horton "Provide them a lease cancellation form to sign - this way the lease is simply cancelled." Make the proper corrections on the unit and on your lease and start over. You'll be better cutting your looses now rather than later having to deal with headaches and possible a bigger loose.