All Forum Posts by: Ron Cornwell

My advise is to not attempt to bite off too much at once as a newbie.  Have a goal of buying a single property.  Spend the time to determine which type works best for you and your life.  My first property was a duplex and I lived in the upstairs.  After you figure out what type of property you want, and you do the analysis, then buy something.  Don't sit on the computer for 3 years analyzing with no action.  Also, don't get emotionally invested in the deals.  I have had more unaccepted offers that accepted ones.  My rule of thumb is if they accept your first offer, you offered too much.  You make your money on the purchase, don't count on appreciation to make you money.

It took me months of pain to find an electrician, plumber, and HVAC contractors I liked.  This is why I say start slow, you don't want a bunch of problems popping up across your properties and no relationship established with contractors.  And don't expect them to jump when you call.  I had to stand in a long line for service until after I had 4-6 rental properties.  

I have 18 'doors' split between SFR and apartments, with equity ranging from 20% to 100%. I am able to generate about 75% of the income I require on a monthly basis after expenses. The biggest issue I have found to date is paying for healthcare without a 'day job'. You can buy a group plan for a rental llc, but the cost is of concern for a company of my size.

Hope all this helps, Let me know if you have more questions

Ron

I joined BiggerPockets about a year ago, so I am not new, but I will have a new location soon.  I currently live in Iowa, but my job is moving.  I have a choice of Irving, TX or Scottsdale, AZ.  I am hoping for some insight into neighborhoods for relocation or possible investment property potential in either area.

Thanks
Ron

Congrats ! I closed on 8/11 on my first SFR that will be a rental without me living in it first. Now that it is repaired & renting I feel good ! Keep up the good work !

@Denise Mitchell

Welcome to Bigger Pockets.

@Jonathan Godes, I have an account at MSB I started last year, but the majority of my business has been with Dupaco out of Dubuque.  I have been a member there for over 25 years.  Their loan approval process is a little more formal.  I might have to check out MSB more to see if they can help me.  

@Dave Foster ,the other issue with small market is the lack of inventory.  Everything in my price range has been the only things on the market for the past 6 months.  After I finish this current deal, I may try to build up my savings again and look for a motivated seller like @Thomas Franklin mentioned.

@Jonathan Godes, I am new, but I have always thought 1% of the assessed value was a good maintenance budget.  

What do you think is more accurate? I was also going to add 1% for CapEx which I did not have listed above.

Thanks

Ron

Hi, I'm new to BiggerPockets.  

My first property purchase was a duplex that was seller financed when I was single back in 2003.  I converted to a conventional loan in 2008 and sold in 2009 when my full time job moved me to Atlanta. 

Currently, I have a primary residence, a piece of RAW land used for farming, a single family rental and I am under contract for my second SFR.

My market seems to be very small the more I look into it, but my goal is to have 4 SFR by the time I am 45, I.m currently 40. This may seem like a small goal, but in a small community, I think it will be challenging using conventional financing.

Thanks

Ron

Let me know if this is not enough information, I copied what i had seen on another post.  I am converting an owner occupied 3/1 to a rental.  I expect it to take 2 months to get my initial tenant.  I have a signed contract, but left a 'subject to inspection' in it as an out, if i change my mind in the next 2 weeks.

Property: 3 Bed/1 Bath, Built in 1880, ~1400 SQFt, Zip 52060

Expected Rent: 650

Estimated Maint: 50

Estimated Vacancy (Year 1): 112.5

Estimated Vacancy (Year 1+): 19.5

Taxes: 109.5

Insurance: 56.5

Financing:

Sale Price 55,000

Conventional 30yr, 4.5%, no points, 15% down