All Forum Posts by: Jenna Banaitis

Could you take out an equity on your primary home to put the 20% down? Or do you have a rich uncle dying to get 6% on his money lent to you?

Have you called SEVERAL local banks in  your area? I called about 6 before I found one who said 20% is fine. Rates were great too! I'd call around.

Good questions...I'm curious to see what people think about this. I lean towards the straight loan since I like the fixed rate.

Hi BP Community! 

Can someone give me some wording they might use when writing letters to potential sellers? I have about 20 home addresses of targeted multi's in my area. All in the same neighborhood. This is what I have written so far....too much? Our market is so crazy right now - nothing on MLS, or Zillow, or Craigslist. We really aren't looking to get some crazy deal, just a fair price if the numbers work and thankfully, my father is an appraiser so of course, I won't overpay. Thoughts/ideas appreciated!!

Dear INSERT NAME:

My husband and I are actively looking for an investment property in TOWN.  We have been driving around neighborhoods in which we have interest and noticed your property on STREET ADDRESS. We are pre-approved and are looking to pay fair market value for your home. If you ever consider selling, please reach out to us at the number or email below so we can have a conversation.Thank you for your time.

OUR NAMES
EMAIL
CELL

Thank you everyone. Huge help and gave me lots to think about. 

@Kelly Carter  Yes, my first rental was actually a single family home, zoned in a multi-family area.  We converted it to a 2 family.  It also had 10 garages which we rent out so it really is like owning a 3 family.  The agent didn't know how to price it with the garages, so we scored a fabulous deal!  Yes, true, the multi family deals are hard to find as well but I feel the cash flow numbers work out better.  Try to be flexible in the area you are looking and like I said, get creative.  Tell everyone you know you are looking, go on craigslist daily, zillow, drive for dollars, etc.  I still have an agent, but I don't rely solely on him.  My multi-family home is in a B location I would say.  I even lived there at some point. I wouldn't say, I'd live there now, but it isn't horrible. That is an obstacle I had to overcome - just because I wouldn't live there, doesn't mean someone else wouldn't and be perfectly happy.  Another tip is to offer, offer, offer.  Remember, offers are free! Who cares if they turn you down?  The numbers have to work for you.  You will learn from every step you take towards your final purchase.  

I feel your pain. In our area as well, it's hard to find a deal that not only cash flows, but cash flows well. Why do this if you aren't going to be making enough?? I think I would consider a small multi family before going to a single family. Also, think outside the box. Eliminate the competition and look for deals off MLS. Craigslist, driving for dollars, zillow, etc. Not saying that will be perfect, but perhaps you can work the numbers better to fit your needs. I'm so sick of competing with everyone, that we started knocking on doors in the neighborhood we currently own a multi family in. And guess what? The house RIGHT next door to us is considering selling! BINGO! Keep trying but get creative with finding your deals.

Hi, 

We are currently looking at a duplex in our area and would clear $350 a month, after Principal, interest, taxes and insurance.   How do I know if this is a good number? What is the rule of thumb? This property is in pretty good shape, built in 1987 so I can't forsee any major expenses right away.  I should also say, this is on a 15 year fixed.  We hope to have all our properties paid off by 55 hence the 15 year. Thanks!

Great info!! Ty!!

Would love your opinion - we have a totally renovated multi family home (strictly rental/not owner occupied) valued at $200,000.  We owe $68K and only have 8 years left.  Recently found BP and have wanted to buy more multi-families for some time now, but could not seem to save up enough for our market's down payment. Now, after listening to BP podcasts, thinking we should try to re-fi this property and take cash out to purchase another multi.  We could keep the payment the same and go to a 15 year.  Our interest is now 4% and may go up slightly but at least we would have enough to re-invest. Am I totally off base or is this a good idea?