All Forum Posts by: Dewain J.

@Ryan Arth

Thanks for the reply. I've been dealing with a credit union from the beginning, so hopefully as I go through this process over the next year or so that relationship will just get stronger.

@Rick Pozos Yea I' have to agree with that. I'm surprised that wasn't the first point brought up. If you buy it right, (especially properties that need rehab), i don't see why you can't pull out equity and have your rent be more than your note. And assuming we're talking buy and hold, wouldn't the long term stability outweigh any market fluctuations, especially since you'll be paying it down. 

So far with each refi, I've been able to pull out substantial cash to fund my next property. 

Good cash flow, plus stacking up some reserves sounds like the move to me. 

@Yvette M. Does that include background/credit check/Previous Landlords? Anything outside of that? I believe I am limited on the deposit here in Philadelphia. I'm pretty sure it can't be more than one months rent unfortunately. 

So just had to evict some unauthorized occupants from one of my rental units. The place smelled like a zoo. The sink was full...later discovered to have an unauthorized occupant as well...

https://youtu.be/lU1n3OJ6Omg

I'm currently working at a job I've been at for 14 going on 15 years that pays very well. I've also had a business that I've run for 9 years on the side. About a year ago I started investing in real estate and now have 13 rental units. This has grown fast and as I grow at this rate, it's become another business unto itself that I would like to dedicate more time to. 

So with all that going on, it's gotten to the point where I really don't need the w2 income to live. I've been fortunate enough to replace all my w2 income. That being said it has definitely made my life easier getting loans and financing because I've got steady income, long employment history, with a very low DTI and high credit score.

My questions is for those of you who have traveled this path already. I'm concerned that I will run into problems getting financing without the W2 income. Is this a valid concern? If so how do I mitigate that? Are there any pitfalls that I should be anticipating/avoiding? 

I'm curious how other landlords are handling screening for section 8 and other subsidized tenants in terms of screening and protecting your investment. Obviously they are responsible to a very small portion of their rent. Most times it's almost negligible. Are you still doing credit/background checks? Any recommendations for best practices that you have found useful? I'm currently doing rentals in Philadelphia. 

I'll throw a vote out there for cozy. Like the interface. It's clean, and the payments come in pretty quickly in my opinion.

@Brandeis Brockman My first property was a cheap one, so i bought that cash and refinanced out of it. I then used hard money for my next property which was  a larger project, so I actually used 0% balance transfer offers for my down payment, the hard money for rehabbing. Refi out, paid the cards and money lender off. Had Money left over after, enough to by my next one cash. Refi out. 

So basically, I just kept recycling the same money over and over, with an emphasis of buying undervalued properties, that I could pull more equity out after each refi. 

I think the real question everyone wants to know is if you can't find a buyer right away prior to closing, do you have the cash to close. Still not the end of the world if you have a good property under contract if you have the cash. I'm not a wholesaler but I've considered it. And my thought process is if I ever got a contract on a property that I couldn't wholesale it would always fit my criteria for a buy/rent/refi. No matter what you should always have a contingency plan....soooooo, can you close if you have to? Lol

Russell Brazil I'd have to agree. I've only been investing for a little over a year, but i don't put out a ton of offers. I purchased several multi families and single families in my first year. A total of 6 properties and 14 units. I probably submitted 9 offers. Two of those 3 I didn't get were accepted but the deal fell through. So I think it's a combo of underbidding or not finding a good niche or target. I have definitely been buying right as well.