All Forum Posts by: Sergio Fetter

@Gino Barbaro @Rod Khleif

How easily do you find to convince an investor to invest in towns with population of 100k or less?

Though there are many upsides to investing in properties located in satellite towns, I find it less attractive due to the risks mentioned in this threat. 

Thoughts...

@Hayden Haucke

Your turn over rate will be near 100%. Since it is 18 units, you shouldn't have a problem with finding a vendor to turn them. Keep in mind that a lot of students have loans, and they are able to pay for the entire term in one payment. Now be ready to deal with a day care like property. Just heads up. 

@Alan E. @Rod Khleif 

Hey Alan. Rod is correct, in my experience when I was a property manager, I had plenty of people turn down an unit because it was upstairs. I have never had that issue with a downstairs. Provided they are the same, which I assume they are, then you should be golden in either one. 

@Daniel Courant. I do not have much experience with VA loans, but your strategy seems ok. Make sure you do your home work as far as rent prices, etc. Also, if you are targeting students, a lot of students tend to go home during the summer, keep that in mind as well. As long as you know what you are getting into, and make a clear plan of execution, you should be fine.

Hope this helps.

@Arvin K. Good luck on your first property. As it has been mentioned before, I would go with local banks, they tend to be more flexible. Banks usually finance around 80%, with a debt ratio of no lower than 1.25. Also, get your approval by at least two banks, three preferably, if one decides to pull back at any point you will have a back up. As @Todd Dexheimer said, the amount of the incomes, plus experience will also play a big part on the game.

@Wave Taylor. As @Harrison Smith said, there is more to an offer than just the price. I personally look at 7 to 10 deal weekly, and submit at the most 3 LOI's a month. The key is consistence, you have to keep looking and making new connections. I have clear guidelines of what I'm looking for, and if the property does not fit within my guidelines, then it is a no go. If you offer was no accepted, just move on, and offer on another one. It is not going to be the last time... it will happen again.

@Drew Shirley

I think that @Andrew Cushman covered pretty well. For an older property make sure that you add to your acquisition cost a structural inspection, EDR (Environmental), and lead paint inspection. Also for older properties, I always bring my HVAC person to give me a quote to change the entire system, and I add to the budget 30% change in the first year, another 25% on the second year.

@Snehi Kumar your decision will depend on your goals. Are you trying to buy and hold it? Or do you have a exit strategy? If you are just going to keep it for a few years research the area. Check each property, is there an upside? What are the type of people are renting? What's the overturn? 

Also, I would hire a property management company, specially if this is your first time. It might cost you a little more upfront, but you will be forever grateful in the long run.

@Tom Higgins You have to check local laws. It is illegal in some states to do that.