All Forum Posts by: Adam Bartling

@John B. You asked the question what would "we" do, this has no insight into your risk adversity or growth needs.

What I would do is invest another 100K in a new 50unit apartment we are building Q3 and bump another investor and make more for me!!!

Meet more people, make a small data base of their investment interest.  And just keep in touch and kick ideas by each of these people that you think might fit.   More contacts the better.

Also look for the online meet ups and the lower dollar conferences. There are plenty of conferences that are under $350 and will have 500+ attendees.  Do not get caught up in the pay 8-20K for classes.  Most of the info is here on BP and the podcasts

@Tim Bee This is 100% loaded question that is unfair to compare on $ alone.   Each location/ market is going to have different costs.  You need to focus on what % makes sense for you.

You need to focus more on your Debt Service Coverage Ration DSCR and your Net Operating Income NOI.

I have junior investors weekly bring me deals where they are all excited that the cash flow is $10-20K per month, but they are no looking at Expenses, Increase in tax value( very huge increases in some markets right now) Not factoring Vacancy and the final % of profit.

Looks like you are on the right track focusing on NOI. Any other questions just ask.

@Wesley Oaks for someone that makes what you make in AL, I would not look at an FHA loan because getting to remove PMI almost does not happen.

So I would look at conventional financing with 5% DP.   

70% of your mobile home rental will be counted as your new income for your DTI Ratio.

As long as you have 2 years of self employment or were previously employed in the same field as 2 years of relevant experience, being self employed is ok.  We are not looking at your monthly income, we will be looking at the Taxes and bank accounts.

@Chris Noles  at 120K for MF, not sure as even in St Louis that is only a duplex and they have a low cost market.  Maybe a syndication, I know some that are returning 14+% consistently.  Build that nest egg and then come back with more $ and get you decent property and be better off financially prepared.  Or Go after pre forclosures . 

@Micah Grant  NO GO on loan for purchase with Another Loan.  Get more people involved in your deal or look at your retirement account or sell something.

 I do have a lender who will take a 2nd lien position but that still has you at 20% of your team's $ in the deal and on their 2nd position its is a $500,000 Min.

Quote from @Stacie Smith:

That sounds high to me. I have found a local credit union to have the best rates with a long-term ARM. This is what we are closing soon:

Rate: 5.875 (locked in Dec 22 - no buy down)

Term: 25 year; 10/5 ARM (I'm confident I can refi within 10 years when rates are lower, but that's not guaranteed)

Credit score: 800+

Appraised value = $145k; 75% cash-out refi

This is our third cash-out refi with this credit union this past year. We're doing BRRRR.

 @Stacie Smith  Your Credit Union is making you one heck of a deal.  (example all these publicly traded mortgage companies who had 20B in loans but then lose 2B, WTF )  

Now for the Credit Union they typically lend out their clients money and can go lower than the market rate.  And typically they are not reselling the loans and can only support a limited # of transactions.

When the market changes there are always companies willing to loose to gain market share, and a CU typically has you bank with them and I am sure they will hit you up on insurance and other services.  So a 6.6%- 7% fixed 30yr that closes in 2 weeks is very reasonable of the market rates.

use the Search.. you are in the right forum

Quote from @April Hamm:

Hi!  I just got preapproved from the lender today for my first rental property!  I haven't bought a house since my primary residence in 2007, so this financing part is new to me.  It seems like traditional lending is the cheapest way to go long term, at least at the beginning.  I am putting 25% down and getting 7.731% 30 year fixed.  This is with paying $2000 to buy down the rate.  My credit score is 800, if that's relevant.  The lender said that you pay an extra 1% for a non primary residence.  Can anyone confirm this is true, and is this worth shopping or is this about the going rate at the moment?  

With an 800FICO, and 25% DP if you DSCR is 1.30+ I probably have lenders that can get you 6.6-7.5% with no buydown.  But that rate is not extremely high, most people would be in that range with most big box lenders.