All Forum Posts by: Tesho Akindele

@Tristen Livengood

I think @Angel Ginnett gave you some great advice. A good place to start would be to house hack. You could buy a SFH and rent out rooms, or buy a multi unit and rent out the other units.

You may want to save up a little bit more than $10,000 before jumping in though. It is always good to make sure you have some cash set aside because thing pop up, in investing or in life. I hear great things about Columbus so I’m sure you’ll do great!

@So Da

It is definitely possible to pull out cash after using a mortgage for the purchase. As long as you can make improvements on the property that will raise the ARV.

The problem with this strategy is that it's hard to find a property that's qualifies for a conventional mortgage and has enough items that need to be fixed. Most houses that qualify for conventional mortgages are already in pretty good shape. When doing a BRRRR you usually need a house in rough shape.

@Theresa Amouzou

I think a lot of investors can relate to that feeling of wanting to know everything before taking a first step. But the truth is.. you will never know everything. It is a constant learning process.

I would suggest connecting with a knowledgeable real estate agent and property manager and then just going for it.

It won’t be perfect. Things will surprise you. But as long as you have a good team and some cash reserves you will do great! Good luck!

@November Morris

Each bank has their own criteria. Just let them know right at the beginning that you are investing from out of state and they should be able to say if they can help you or not.

Another thing to keep in mind is that interest rates are higher and amortization periods are shorter with these loans than with conventional loan. Make sure you factor that in when running your numbers.

@Shuo C. Turnkey companies basically flip a house but they sell it to an investor instead of a homeowner. They make money because the price they pay to buy and rehab the house is lower than the price you buy it for.

If you find a good turnkey company you can get a rental property that is ready to go and very low maintenance. They profit, but you also profit because you get a cash flowing rental property that is fully rehabbed.

Hi @Shuo C.

I would start by saying you should look into buying properties in either Kansas City or Columbus. Both of those markets are affordable,have good cash flow, and strong appreciation.

Next I would suggest you consider how much time you want to spend on real estate. If you want something low maintenance go get a few turnkey properties. If you are looking to be more active I would suggest looking into the BRRRR method to try and stretch that money a bit further.

Good luck!

Thank you for the responses @Catherine Emert and @Scott Wolf. I contacted the title company in my area and they gave me a quote on what fees I should expect. 

Does anyone know how to estimate closing costs on a portfolio of single-family rentals? I am evaluating a deal in Kansas City where I will purchase multiple single-family homes in a package. If closing costs for one house are around $4,000, would closing costs on the package be, 4,000 x Number of Houses? Or would is there some benefit to doing all the houses under one loan?

@Remington Lyman what is a realistic all in budget, including purchase price and rehab, to complete a BRRRR in Columbus?

@Wyatt Postal I have a few properties in Kansas City. You can definitely find some BRRRR deals in that price range. Closer to the top of that range for the type of neighborhood you're looking for.

I'm trying to get into BRRRR deals now as well. I've heard good things about Columbus, but it seems prices are higher in that market.

I’ll definitely be following this post to see what others have to say. Good luck!