All Forum Posts by: Melroy D'Souza

Wow, Ben Leybovich replies to Brice Hall? - I thought Brice Hall was Ben Leybovich in disguise warning against 30K houses - LOL

The big advantage of a FHA loan is the low down payment to get in, BUT they have a bunch of rules and regulations to follow and "standards" that the house needs to be met before they lend you. You kind of have to weigh these options - if you have a good deal out there, will the seller fix things to make it FHA ready?, or will they not even entertain any repairs? The FHA rate is not necessarily lower, you'll have to shop around. Conventional loans are probably the cheapest. If you have the down payment, go with whatever rate works for you.

Regarding condos, I am biased, so take my opinion with a grain of salt. I don't like them for investing in Central Ohio. However, if you are going to live in it and you like the condo lifestyle, absolutely go for it. What I hate about condos is that the association generally has too much power and can dictate if the condos can be rented or not, increase the fees, etc. I am getting into RE Investing to maintain some control over the numbers, condo investing does give me the control I am looking for.

Good luck Jessica and way to go on taking action. Hang in there and stick with your success steps. Your credit will improve over time and with some more experience you will have access to private lenders too.

If your numbers turn out to be correct, you've hit a home run indeed. Question for you - 

1. How was your experience buying on Hubzu?

2. Do you need a realtor to bid on properties?

3. The extra fees that you paid, was that disclosed before you bid? They seem quite high. But again I have never bought of any online auctions.

@Brian Smith,

I think the number is 75%, but otherwise your explanation is spot on. Congratulations on your numbers, they look good. I'm trying to work my numbers closer to these ratios, have a long way to go.

@Jeffery Waicak , 

Consider becoming a member of the board of realtors to get access to the MLS. Approx. $1K a year in fees for Central Ohio, probably about the same in your area. Around $1.6K in tuitions, app fees, etc. I've just started on that route. Just find a broker that does not charge a desk fee/monthly fee.

Another option is to have your agent set you up with multiple queries - you can go for very specific or just make them very generic. Then you can play around with what the system sends you. They can also set you up with instant email every time a property is added or modified on the MLS, as opposed to a daily feed. Perhaps she can sit with you for an hour or so and the both of you set up the exact criteria you want.

Coming in late on the discussion, a lot of good points in the discussion. I met a couple of PMs in the Central Ohio area a few years ago and they specifically told me that they do NOT manage rentals in the D areas. And if you look at the numbers, it makes sense. Say average rent is $600 - 10% PM fees is $60. The D tenants are not going to send payments automatically using ACH, heck they might not have a checking account to mail a check either. You're going to need to go there to pick up rent in cash. And you'll have to stop by a couple of times at least. Unless you manage the entire block you are losing money managing a few here and there in that area. $60 is too little. We're not even talking about crime. If you are investing out of state, you better have a great PM company - probably more important than the "deal" itself. Your chances of finding a good PM in a D area goes down quite a bit. 

That being said, I do know an investor here who does his own handyman work and has lived in the D all his life. He is a part time investor and is doing pretty good with the few properties he has. He is successful for obvious reasons, not every one has the same skills/background.

Good luck Ryan and congratulations on taking action.

Thanks for the prompt response Richard.

@Richard Balsam, do you have any tips of finding such a broker? Are these nationwide brokers? I'm looking for a similar one in Ohio.

Thanks.

I like what @Lynn M. and @Susan M. suggested. Work with a good tenant. I have a tenant who gets paid on the 5th and 20th of the month. They take good care of the place. I just modify the lease to start on the 5th, rent is due on the 5th and late after that, late fees apply from the 10th.