All Forum Posts by: Aamir Shah

Thanks everyone for the advice! Very useful!

@Chris Mason @Corby Goade definitely have thought about buying higher value properties, it just so happens that they arent very common in my market. I could consider switching markets or looking local. In SoCal that means low cash flow, high appreciation properties. 

@Nghi Le mind sharing lenders offering these rates?

@Todd Pultz I reached out to Limaone and got a quote for 8%. I think their rates have gone up because of Covid. 

I have finally acquired 10 rentals. Hooray! Now I'm stuck. All rentals are out of state in MI. I am from CA. The 10 rentals are fannie mae loans. I want to keep buying more rentals, but am stuck on financing. 

Called/emailed many MI banks, none support out of state investors. For those who have passed 10, whats is your strategy? 

Options I have explored:

* Refinance all 10 rentals into portfolio and restart, I have gotten fairly high quotes of around 7% interest. Would be high closing costs.

* 

I found a national lender who is offering 8% interest on single family loans.

Any other options?

Thank you!

I have a few homes that are held through an LLC and a few homes that I personally hold title to.

Would there be issues with paying mortgages that I hold title to from my business checking account? Or should I segregate the rent received and expenses between a personal and business account?

Thank you!

@Tarik Turner most of my properties appraise for 90-130k

I am approaching my 10 loan Fannie Mae limit. Anyone know of lenders in Michigan who support portfolio loans for out of state investors? I have contacted a few credit unions in the general Detroit Metro area but most require I be a resident over there. 

Ideally the lender would support a cash out refinance on a single family rental; preferably 30 year fixed rate mortgage. 

Thank you

Thanks for the advice. I will look deeper into multifamily. 

@Joe Villeneuve that is a good idea, but Im uncertain about running a flip business out of state. Also the detroit suburb market has gotten hot and its hard for an out of state guy like me to find good deals as I cant always fly out to auctions. But I think you are right that I should open my mind to flipping rather than staying narrowly focused to just rentals. 

@Jaysen Medhurst At least in my head, I was planning on maximizing the amount of mortgage loans I can get before moving on to corporate loans. So that would probably happen when I have 10 rental properties. Plus my market is very single family focused (suburbs of detroit metro). I have thought of pivoting markets earlier though. Would require building out a new team in a new market. 

@Arlen Chou I am investing out of state in Michigan. Regarding partners. Are we talking hard money lenders or actual partners who are splitting home purchases. 

I now have 4 rentals. They are cash flowing and things are great. But I am running into the issue where things are moving slowly. 

I use the BRRRR method, so my cash gets stuck until the rehab and refinance is complete. This process is typically around 3-4 months per home. As a result, I can only buy 3-4 properties a year. My goal is to cash flow 10k a month. Assuming each rental nets me 250/mo I would need 40 rentals. That is a 13 year outlook based on my existing strategy.

I hear all these stories on BP about people getting hundreds of units in 1 year. So how did you do it? What am I doing wrong?

@Cheyne R Sexsmith I have bought 4 rentals in Michigan since then but I should probably hop back on the Dayton train and see if I can out-of-state BRRRR over there.