All Forum Posts by: Aaron Garbade

@Zack Karp thanks for the insight... so FHA is obviously more appealing to me.. how do I make my next move? is FHA a separate application process? are lenders hesitant to do FHA?

BP! I am working on acquiring a house hack in the Tampa area.. I have prospects and I am approved for a loan but the down payments that I am being quoted are not manageable. My DTI is good, I have 100% equity in another asset and all of my other properties are cashflowing.. but I am being told that if I buy a 3 or 4 plex I will have to put down 25%...Duplex 15% but if the loan amount is over 545K I am responsible for increasing my down payment. Can someone help me understand all of this?

Good morning,

Back in May I did a cash purchase on a 4 plex that needed a little work. I bought the property with hard money, fixed it with my own money, went to refinance and: it made it all the way to underwriting before the lender told me that they wont refi it for me because the property is actually deeded as 4 townhomes... I want to make sure that I am learning as much from this as I can. I did 1 closing, I have 1 insurance policy for the prop, I did pay taxes on 4 units separately but i also do that with a duplex that I own. All the units are under 1 roof and there are no additional units in the building..

Any advice would be welcomed.
 

I didnt. What is the best way to do that? Should I create a spreadsheet with my own info? my realtor was hesitant to contact the seller without a pre-approval. what information do i need to ask for from the seller? just rents, occupancy and expenses?

Thanks a lot Jody Sperling

Recently, i found an on market deal that I was very interested in. 5 4-unit buildings, priced well, analyzed great, needed a little work but not enough to be a full on BRRR. I have capital but not quite enough to cash purchase and repair a 20 unit complex. I started the process of getting a pre approval from the lender and contacted a realtor in the area to begin the offer making process. The bank told me NO... the reasoning being that my income was not high enough (i was asking for pre-approval for a 650k commercial loan). Within the past 8 months i closed a 425k deal and that has been profitable (STR) my other properties are cashflowing over $200 a unit and paying for them selves, my monthly expenses are the lowest they have ever been (living with rommates) and I make over 100k a year with my day job and RE. So what gives? how can i tell the bank that the property that i want to buy is already cashflowing? how can tell them that i have reserves that can cover the mortgage if all 20 families decide to move out for 6 months. what am i missing to get this deal off the ground? Naturally this deal is gone but i dont want to miss out on future deals. Most importantly I am moving for the day job in the next 6 months and I desperately want to house hack on a 4 plex. The average cost of a 4 plex in my destination is right around 650k. what can i do?

@bjorn Ahlblad Okay I suppose. with some conservative estimations (worst case scenario in mind) the cash on cash ROI was 10% net just over $100 per door and the cap rate was at 9%...

I have found a multi family home that is currently in pre-forclosure. from the looks of it, the home is in great shape and ready to be rented. What am i not thinking about and why is there seemingly no competition to purchase the property? I am new to REI and i have been told (with not a lot of reasoning) that turn key rentals are typically not a good idea. I can not make the calculus make sense!

I have found a duplex that is a perfect brrrrr candidate! My first move was to send a mailer with a handwritten note to the owner's address that I extracted from the GIS maps which aligned with his listed address on a skiptrace service, I called every number on the skiptrace results as well as email addresses but no success. I know that there have to be more options but i do not know what they are!