All Forum Posts by: Jon Reed

You should go talk to a few banks.... even with an S-Corp you will most likely be held personally responsible for all the debt incurred by the company. Which means your own credit history is just as important as your company's history.

Write better posts, then you will get better feedback.

You never stated how much you are planning on paying for it. Without that information then there is no way of knowing if it is a good deal or not.

No way of even guessing what it will take you.

I have rented an entire 24 plex in 3 days... I have also sat on a duplex for months to fill it up.

All depends on what you are charging and what the demand is in your area.

That does not sound like a good deal. With 2K in mortgage payments that leaves just $400 each month to cover all other expense. At best you are looking at breaking even. Also, most banks will require at least 20% down if this is an investment property.

I would continue on with the repairs and tell them you are working quickly to get the toilet and sink back in. It just so happens that is the last thing that has to go in so it will take 4-5 days before they are in. If they refuse to pay rent then just keep their deposit. It they trash the place and you can take them to small claims court and if it is SUPER bad you can claim it on insurance.

There is a pretty simple answer to this question.

1. Do you want to become a real estate investor? Is your goal to own 5, 10, 20+ rentals? Then keep your townhome as your first rental property.

2. Would you rather not mess with tenants and owning multiply properties in the long term? Then sell it.

The best way to finance this property would be to go to a half dozen local banks in your area and ask them. They will help you more than any forum reply.

The mechanics behind the loan are exactly the same. You do not pay any more upfront interest with an ARM. The only difference is the interest you pay each year may change.

If you are hard set on starting with a 16+ unit apartment complex but don't have the cash for the down payment, plus the additional cash to keep in reserves for that size of complex, then you need to find yourself a partner. I hate partnerships but going big on your first complex without having the capital... that really is the best option. If you don't want to use a partner then you will need to strap in to pay A LOT more than 10% interest on a HM loan for the down payment. 

I have been in Real Estate for over 10 years now and I still pay my private money lenders 10-12% even though it is a relatively low risk investment given our track record. If I didn't know you personally and you came to me with this idea I would tell you no in a heart beat.... it would just be too risky. However, if I personally knew you for years and believed in you I would still want at least a 20% return on my investment for taking a big risk on a person who has no past experience.