All Forum Posts by: Nnabuenyi Anigbogu

@Frantzces Lys

 Hi, do you still have owner financed deals in the Baltimore area? I am interested in both Flips and Buy and Hold Properties.

Thanks

Jamie, where is this located? In the city of Chicago itself? and what area?

thanks

If this is located in the chicagoland area i might be interested.  However as stated above more information is needed.

Thanks

Thanks for all the input everyone. It opened up some avenues of thought for me. I decided not to do the deal due to some permitting aspects that would involve dealing with the city of Chicago and potentially tearing down the work of the previous owner (he started doing a lot of work with no permits and it wasn't to code). Also the HML was definitely quite expensive and i wasn't to comfortable in my ability to do the deal successfully.

@Brie Schmidt I know you own a lot of buy and holds and i assumed you used the refinance strategy that i was trying to implement. How did you go about funding the initial purchase? Private money?

Thanks again all

Hello again everyone,

I am currently considering a deal in Chicago using the Buy, Rehab, Rent  and refinance strategy. I will be buying with hard money and refinancing into a conventional loan. Below is the high level view of the deal details.

Purchase price of the building is 260k and estimating rehab at 70k. I am using 11% interest and 4 points to factor the hard money loan. Refinance is being factored at 80% cash out and 5% long term interest rate. My goal is to be able to get all the hard money repaid from the refinance. My money can stay in if needed. So even if the ARV drops to 400K i can still refinance to pay off the hard money.

Also i included management to see its impact. I plan on managing this for at least the first 2 years till i get enough units (10+) to hire a property manager. So the number for the first two years will actually be better. And this is a long term hold in an A/B+ area with low vacancy and good chance of appreciation.

Please proceed to tear the deal apart. I want to see all that i missed or did not notice. 

Thank you

Hi @Jerry Padilla

Quick question. I don't have the two year landlord history but i will have owned my primary property for 2 years as of july 17th. I also own a 4 unit that i have had owned for almost 2 months. I will be selling the primary by August (in escrow right now) and will have only the 4 unit.

I am buying a 2 flat to rehab (hard money) right now and will need to refinance it in about 3-6 months. How will my situation described above affect my refinancing prospects? I plan to remodel and place tenants prior to refinancing and rents will cover all PITI, Cap ex, maintenance etc.

Given that i sold the primary can i still use that history to qualify assuming i meet all other criteria?

Thank you

CJ,

I would be interested in finding out more information on this. I have great credit and would also like to see what areas of the country this is for.

Thanks

Neil,

I don't invest in New Jersey but I know for a fact that there is nowhere in the states that you can just go in and kick tenants out even if they have not paid rent. You would have to go through the court system to have them removed. The specifics of how to go about it varies by region so you would have to look up your laws.

I know in Chicago you would first have to send them a pay or quit notice before you can move on with trying to get them out.

Talk to your attorney before proceeding with anything.

Good luck

@Nick Noon

For your first question, here in Chicago, if you only own one building and it is 4 units or less you are exempt from most of the ordinances that govern tenant screening. Meaning that i can accept or deny based on gut feeling if i want. I believe the only thing i really have to worry about is discriminating based on race. Check your local ordinance and see if that applies there. Small one building landlords usually have less stringent rules.

As to the yard stuff, that is determined by your lease. If you market the unit and tell the prospective tenants that yard access is not included (and u put it in the lease) then you keep the yard to yourself.

Hello all,

I am currently looking to switch jobs and have been interviewing for BA type roles in corporate America. My question revolves around W2 vs 1099.

I am currently a W2 employee and i own one 4-unit property. I plan to buy 2-3 more by this time next year and im worried about what would happen if i became a contractor. Some of the best roles in my field are 1099 and I'm worried i would have a hard time getting conventional loans if i make the switch? (i want to max out conventional before going to portfolio)

What would you guys recommend?

Thank you