All Forum Posts by: John Anderson
John Anderson has started 46 posts and replied 66 times.
Post: How do you deal with appraisals on Section 8 properties?

- Posts 67
- Votes 33
If I'm looking to do a BRRR on a Section 8 property in Cleveland, how do I deal with the appraisal on these properties? The cash flow is fantastic, but I'm worried about how a bank will view the value of the fixed-up property, since they are only looking at comparables (and not cash flow).
Post: Do homes on the coasts really appreciate more?

- Posts 67
- Votes 33
I've only been an investor for the past 10 years, so I realize I'm relatively new at the game.
One assumption that I seem to keep hearing about is that the Midwest/South is for cashflow, while the coasts are for appreciation. Based on what I've seen over that time period, however, I'm not sure that this is true.
While properties on the coasts are certainly more expensive, in terms of % growth I've actually seen higher growth in smaller markets. Ex. homes in Detroit, Charlotte, Cleveland that I picked up for $50k-$100k four years ago have now doubled, while homes in the Bay Area have gone up by 20-25% (ex. a $2mm home is now $2.5mm). On top of that, the cash flow is MUCH superior to what I've been getting in the Bay Area (like 3-4x).
If someone could let me know if there's something I'm missing here, I would greatly appreciate it. Thanks!
Post: What kind of deals make sense in the current market?

- Posts 67
- Votes 33
With interest rates AND housing prices continuing to be elevated, I'm curious about what types of deals folks are doing in the current environment? Is it all-cash, cheap money left over from the pandemic days, or are you venturing into D class neighborhoods? Just wanted to see what folks think makes sense at the moment.
Post: How to Lend Against an LLC?

- Posts 67
- Votes 33
Hello,
My partner and I formed an LLC recently. We have been paying all-cash for some small duplexes and single family homes thus far, but are looking to qualify for financing for our next batch of homes.
If anyone is able to provide us with any insight as to how best we can accomplish this, we would greatly appreciate it. We are looking to get Fannie Mae loans, but many lenders have informed us that they will require us to take out the home from the LLC first and put it in our individual names.
Should we instead create our own LLCs?
Any and all help would be greatly appreciated.
Thanks!
Post: Evaluate my insurance policy?

- Posts 67
- Votes 33
Hi all,
Just bought a small duplex in my personal name. I’m a relatively risk-averse investor and was wondering if anyone would mind taking a look at my policy and letting me know if my coverage is sufficient for this type of investment? Thanks!
Purchase price - $170k
***
Dwelling coverage - $170k
Personal property - $1,000
Loss of rent - $17k
Premises liability - $500k
Post: Should I wait until 2023 to build an ADU?

- Posts 67
- Votes 33
Quote from @Dan H.:
There are some new ADU rules for 2023 and it is only 2 months. I would wait the 2 months or at a minimum have your designer design with new rules in mind and submit in early 2023.
You have waited 2 years. 2 months should be easy decision.
Thanks! Can you expand on these rules? I’m not familiar with them
Post: Local Lenders in Cleveland for out of state investors

- Posts 67
- Votes 33
Quote from @Dave Skow:
@John Anderson- thanks - I am not licensed in OH but let me know if you would like a referral to a OH loan officer colleague
Post: Local Lenders in Cleveland for out of state investors

- Posts 67
- Votes 33
Quote from @Brandon Beardt:
Quote from @John Anderson:
Hello,
I am looking to do a refi on an investment property in Cleveland, OH for a BRRR property. If anyone has any recommendations on lenders I would greatly appreciate it.
What sort of financing are you looking for with the refinance? Conventional or alterative? There are many different lenders here that can assist you with this. Knowing what financing you're looking for will help respondents point you in the right direction. Best of luck!
Just traditional, please. Thanks!
Post: Local Lenders in Cleveland for out of state investors

- Posts 67
- Votes 33
Quote from @Erik Estrada:
Quote from @John Anderson:
Hello,
I am looking to do a refi on an investment property in Cleveland, OH for a BRRR property. If anyone has any recommendations on lenders I would greatly appreciate it.
Hey John,
Do you have your next purchase lined up already? Are you prepared to have a higher rate if you do refinance?
It is not yet finalized, but I am close and I don’t want financing to hold up a purchase so I am looking now. Thanks!
Post: Local Lenders in Cleveland for out of state investors

- Posts 67
- Votes 33
Quote from @Jack Tulloch:
I would recommend @Muhammad Amawi. He is with Greenly Mortgage, they are located in Ohio. He is very educated on the Ohio markets and has a lot of experience working with investors.
Thanks!