All Forum Posts by: Jean Bolger

Great job!

You could try Bellco Credit Union- they have a 3% down first time buyer option. Also- have you checked in to CHFA down payment assistance program? You may be able to qualify for up to 5% downpayment assistance through their program. 

You might want to talk to a mortgage broker that works with several lenders. Not every lender offers the same loan options . Drop me a line if you want some recommendations.

House under 100k is  really tough. There are some decent condo options though.

Refinish, as is if needed, but check with a good hardwood floor guy first. I was amazed at how well some patching I had done came out, and it didn't add as much to the cost as I would have expected.

 Sure, @Andrew Callahan - when you sell a primary residence you don't pay tax on the profit you've made from your equity gain. (Up to a point- you get up to 250k tax free for one person, 500k for a married couple.)

If you sell an investment property then you DO pay tax on the profit. 

A property is only considered a primary residence if you have lived there 2 out of the last 5 years. So if you move on May 13, 2016 and convert the house to a rental you have until May 12, 2019 to sell and pay no tax. After that, it's considered an investment property and you pay capital gains tax on your profit. 

There are ways you can defer the tax, such as doing a 1031 exchange and buying another investment property with the proceeds, but that's just a deferral of the tax; you do end up paying it eventually.

It's probably not a deciding factor either  way, but it's another thing to be aware of. 

@Andrew Callahan I think I am with @Scott Allen on this one. Yes, it MAY be a good time to sell later on, but it's DEFINITELY a good time to sell right now. There's no guarantee about the future market, although those who are saying prices will continue to rise are probably right. If you rent you run the risk of damage to the property by bad tenants. While it's unlikely, it's still a real risk to consider --  plus, it's hard to get a house that is tenant occupied to show well when you do want to sell. If you  move out and have the house nicely staged for sale you'll likely get a better price. And remember that if you don't sell within 3 years then you'll have to pay capital gains tax on all that lovely appreciation, so chances are you will want to sell within that time frame any way.

Hi @Danyell Harris

Welcome! we have a very active BP community here in Denver. There's a monthly meetup (1st Monday of the month @ the Denver Bicycle cafe) and a lot of helpful folks. You've found a great resource here, enjoy exploring!

I think trying to anticipate the needs of future renters and doing the work first to try to attract them is probably a mistake. I would concentrate on marketing the space itself, and allow the tenants to finish it out in a way that suits their needs. The finish could be totally different for say, a dance studio, vs a dentist office. If the tenants want to do the work, great. If they know they want the space but want you to do the work then  you can figure the cost of renovation for their needs and factor it in to the rent.

I am an agent and just did my first transaction with an out of state client who wanted to use their local lender rather than one here. It was a freaking nightmare, and I would encourage you to talk to your broker or other investors in the area about lenders  they recommend in their area. It seems that expectations can be very different in different localities about how long it should take to close and who should be responsible for what. In this particular  case I may have just run across an incompetent or neglectful individual lender, but I'm trying to give them the benefit of the doubt. At any rate the deal was in jeopardy a couple of times because of their delays and it was very stressful.

I think a good local mortgage broker is worth searching for. A mortgage broker needs to get your loan to closing in order to get paid. The loan officer at the bank usually does not.  Talk to investors in the area you are buying and get recommendations for lenders that do a lot of the type of property you will be buying. 

Hi @Shauna Hancock!

I live in Denver but have an investment in Columbus. It's over on the east side on Cleveland Ave near Cooke. I'm not a local but I would say the area is definitely lower working class, but not as rough as some parts of Linden. 

Plenty of people do very well with rentals in tougher areas, it just takes the right combo of business skills and people skills.  On the other hand, you see a lot of people struggling and have to be able to deal with the pain of that. You can't change the world (or the neighborhood) overnight of course, but a good landlord can definitely have a positive impact on neighborhoods (and lives). You might talk to @Al Williamson, who has posted some inspiring things on BP in the past about that very idea. 

I can get you contact info for the property management company I use if you would like. They  might be interesting for you to talk to, since they do a lot of C and D class properties, including some in Linden I think,  and could give you their perspective.

No need for onsite management in Ohio, so don't worry about that. I bought a 29 unit in Columbus that was 50% vacant and in a C neighborhood. It's taken 2.5 years but it's starting to do pretty well-- however I certainly did NOT have the experience necessary going in, lol.

I agree that the prospects hinge pretty heavily on the city and neighborhood, but at that price it's probably worth a shot either way and I like the bold approach. I'll look forward to hearing more as the story progresses!