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All Forum Posts by: Aaron Bihl

Aaron Bihl has started 24 posts and replied 319 times.

Post: DSCR lenders that will lend 100% on purchase

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267
Quote from @Riaz Gillani:

Highly unlikely. Having no skin in the game is a hard and fast non starter from a lending perspective. 


 From a risk perspective how is it any different than a cashout refinance?

I think most lenders I speak with have trouble understanding that we buy nice houses at a discount.  Had a 8 year old house we bought a month or so ago for 195...didn't put a cent into it and it sold on the market for 282 to a buyer with a conventional loan.  

Post: DSCR lenders that will lend 100% on purchase

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267

We occasionally come across properties that need little to no work that we would like to keep as rentals. We are buying at a discount but when talking to DSCR lenders all want a 20% percent down payment even if the property is being bought at less than 75-80 percent of the appraisal value.

Has anyone worked with lenders that will do a purchase and base the downpayment (or lack of downpayment) on the appraisal value not purchase price? 

***I'm not talking about refinances, I'm talking about purchasing a turnkey property at a discount and wanting to immediately buy with a 30 year DSCR product***

Post: Best way to sell a tenanted property?

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267
Quote from @Nate R.:
The situation seems to be that the tenant is trying to make payments but is struggling to earn enough to afford the rent. She is a single mother on some kind of government assistance (disability, I think). When the subject that we would have to evict for non-payment came up, my PM says she has said things like she can't find another place to live because there's "nothing" (or no other houses) available.

I figure one of two things is going to happen 1) There really is nothing available and no manager will accept her application because her income is too low, so we'll have to take her to court 2) She'll find some other option (rooming with others? small apartment?) once we notify her that the lease won't be renewed, so she is likely to skip the last month.

She seems to have settled in and considers this place home, and has mentioned wanting to buy it, but I know she wouldn't be able to obtain financing. Maybe if she knew she staying is not an option, it would light a fire under her to find other arrangements. I've sent 30-day notices before. On top of it all, my property manager, who is sympathetic to her plight, is undermining me. I would have filed for eviction myself if he hadn't convinced me to wait a couple months. I've considered trying to self-manage or hire an interim PM but don't like those options either.



I would see you could give her cash for keys.  If not start the eviction, it can be fairly quick. The one I did that I actually had to evict in bexar county took 3 weeks from start to finish.  

But cash for keys is always going to be easier and less money and effort. 

Post: Questions about owning/operating an STR in San Antonio

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267

The first step would be looking at the one stop map and seeing if there are any STRs on your block and if the density allows for it.  

The STR ordinance outlines the density restrictions

Post: Financing a Container home purchase

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267

It’s currently rented

Post: Financing a Container home purchase

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267

I'm in the process of buying a container home off market/ Its 3 years old and were buying at like 70-75% of value and it previously had been financed with an FHA loan. Any recommendations?

Post: Vinyl planks or Carpet if you are going to sell?

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267

If I’m flipping I’ll usually put carpet in bedrooms.  It’s easier, saves money, and still has the appeal of it being brand new. 

And I personally like carpet in bedrooms.  It just gets so gross and dusty 

Post: Thoughts on Bulverde?

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267

Bulverde is a good spot, and property taxes are generally lower here than in San Antonio 

Post: Buying and qualifying a lot in Texas

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267

I'd also call development services before pulling the trigger on it

Post: Starting Out.... towards my first SFR investment

Aaron BihlPosted
  • Investor
  • San Antonio, TX
  • Posts 344
  • Votes 267
Quote from @Joe A.:
Quote from @Travis Timmons:

I'll second what @Aaron Bihl said - I'm local to Houston and you don't want a $100k house here. You'd be buying problems - especially at a distance. I also think that a property manager that wants to manage a $100k house in Houston is not one that you would want. Anyone with talent has better options - the very limited income upside vs. the problems and time it can potentially eat up is just a bad deal for a property manager on a single SFH unit. If you're interested in Texas, look in a secondary or smaller market - places like Waco, Bryan/College Station, New Braunfels, San Marcos, Killeen, etc. if your budget is $100k. Even something in Midland/Odessa that could be a furnished rental for oilfield workers.

I also lived in St. Louis for 5 years. You need to know that market well before buying a low priced home. It's a city that certainly has opportunity - there is absolutely money to be made, but you need to really know the city/area before pulling the trigger on a property. It's a shrinking population that saw rents decrease in the last year or two when the rest of the country was on fire. While a part of me still calls it home and loves it, there are parts of town that are downright depressing. 

I'd suggest getting a 10% down second/vacation home loan (since it is at a distance) and upping your budget a little bit rather than 20-25% down for a $100k home. 

If you do get closer and want to talk Houston or St. Louis, please send me a DM. I'd love to offer any knowledge or help that I could. Good luck! You're asking the right questions and on the right track. 

If you want a quality property for $100k in Texas, you’re going to have to go to smaller towns than Waco, Bryan/College Station and the others mentioned.  Those cities don’t have that price point anymore.  Think towns with populations less than ten thousand. Even some of those will be difficult. Not saying it can’t be done, though. 

They exist if you go remote enough.  I have a place we are buying that we'll be listing for like 65-70k and it was previously rented for 1000-1200 a month to oilfield workers.  But it's also in an oilfield town with a population of 400 people.  Probably a great little rental but not something I plan to deal with from a few hours away.