All Forum Posts by: Vadim F.

I bought my first duplex at the start of 2023 in OH. I bought it for $143k and put 30% down ($43k down). The seller gave me a check for repairs. I thought I had enough but quickly realized there was way more that needed to be done than what was shown in the inspection report. I ended up coming out of pocket $27k. So I’m all in for $170k. 

It’s a 3/1 on each side and $1250 sq Ft on each. In a small rural town. I would like to recover my money. $850 on one side and about to get a renter on the other for $1000. So $1850/mo in total rent. The $850 side could be raised a bit when the buyer takes over. 

If I sold it for $190k minus the agents commission and other expenses I would probably net $170k. But would it make sense for an investor to buy a duplex for $190k? What is the minimum down payment someone in OH could put on this property? Is it better for the buyer to pay all cash? 

I’ve fixed most of the issues with the property. However, it might have unexpected things because it’s an older property. I want to sell it because i have found better opportunities elsewhere that have proven to work for me. And so I need the money. But I’m afraid I will only recover my down payment and not the money I spent on repairs. I’m afraid I’ll be forced to sell for less than $190k. 

The property also doesn't make sense for me anymore from an investment point of view. I have a DSCR loan at 9%. My mortgage taxes, insurance, PM, and maintenance adds up to $1,460/mo. So my cash flow is only $390/mo which is like 6.5% on a $70k investment.

How can a duplex with gross rents of $1850/mo be worth it for an investor at a price of $190k? Also, should I list it a bit higher like $205k? 

What's the quickest way to make money in real state? 
The answer may vary case by case depending on the level of money invested and individuals interest/capability.

Some say flipping the house, building house in high demand area or buying the property and holding on to it (which may take years for the value to go up, in some case the value wont really go up)


But however is there a known and easy way to make fast and easy  money in real state? 

Great discussion with lots of good points! Mine would be location. I would rather have 10 solid properties in appreciating areas than 100 cheaper properties. My Bay Area properties and one Indiana house are Class A with higher income tenants, which so far have been great. I have been buying in Indianapolis in Class C moving up to B in areas with development (near parks, coffee shops, nice restaurants, downtown) and renovated homes. I ruled out SFHs near busy streets, railroad tracks, and industrial type buildings, has to be be on a quiet residential street. 

I've seen some cheap California properties, $299,000 to low $300,000s a few in SoCal and one in the Bay Area (highly unusual for that low). Those prices are great deals for a major city but I think getting higher rent and tenant base could be challenging but works for some investors. 

Hello awesome BPs

After pushed out from the competition, I am going to put an offer on distressed property in the hot area. The property has been sitting in the market for a while and it needs a lot of renovation - the internal of house needs all things to be changed. A rough estimate is around 80K.

The first question I have is, how much money shall be asked for BRRR strategy assuming the house is 100K asking price and it will require around 80K for rehab

Second is how do you estimate the rehab amount roughly. The above one is my own guestimate based on some generic research. The house needs pretty much all work inside the house. And not sure how long it will take to refinance and get the money as I am going to have it on conventional loan.

Thank you all.

I've learned that a COC ROI of between 7%-10% is what most RE investors look for when deciding whether to invest or not. My question is this. Is COC ROI still important if you are doing an all cash purchase?

Hello BP members!

I am starting my journey of getting into long term rentals. I am focused on the Houston market currently and looking to buy 5 properties over the next 5 years or less. I currently have a home that was my primary but I am currently renting it out and getting some cash flow out of it. I am trying to figure out the best way to leverage this property to help me buy my next property. With the current rates, cash out refi would not be a great option as my current interest rate is low, much lower than current rates. Home equity line of credits seem kind of risky in the current environment of high interest rates. How have others in this community leveraged a property to get started on their journey. Thank you in advance for your time. 

 The 20% return is pretty unrealistic. You want to like the team cause they'll make or break your experience wherever you get situated. 

 Thank you for the response!  I'm looking for a cash flow market.  Any Cleveland real estate agents that know the market well and could share some numbers from current clients?