All Forum Posts by: Agustin Conti

Quote from @Agustin Conti:

Hi, I do have 2 rental units doing well in dif. states (I am from Florida) and I am looking to buy a Single Family Home for LTR in the Greenville Area of SC. I know these are not the best times for getting good financing deals and interest rates but I am ready to to move on and planning to refinance as soon as things get better. I have a credit score of 815-825, I am currently pre-approved for a 30-year fixed loan with 20% down payment at the following rates: (with an online bank) 

8.125% Rate
8.708% APR

Plus! 3.4 points ($7,648) These numbers are crazy specially compared with 2 years ago when I got the 2 properties I have under 3% each.

IF the numbers allow for self support and or minimal cash flow I want to go for it and refinance later BUT the question is:

Is there realistically anything better than this out there? as of now (AUG 23) if not, when is the expectation for these numbers to get better?

Thanks a lot!

Can you clarify the difference between the rate and APR structure? shouldn't these be the same? I think if that is truly your credit then you can probably find some better options here on BP

Quote from @Agustin Conti:

Hi, I do have 2 rental units doing well in dif. states (I am from Florida) and I am looking to buy a Single Family Home for LTR in the Greenville Area of SC. I know these are not the best times for getting good financing deals and interest rates but I am ready to to move on and planning to refinance as soon as things get better. I have a credit score of 815-825, I am currently pre-approved for a 30-year fixed loan with 20% down payment at the following rates: (with an online bank) 

8.125% Rate
8.708% APR

Plus! 3.4 points ($7,648) These numbers are crazy specially compared with 2 years ago when I got the 2 properties I have under 3% each.

IF the numbers allow for self support and or minimal cash flow I want to go for it and refinance later BUT the question is:

Is there realistically anything better than this out there? as of now (AUG 23) if not, when is the expectation for these numbers to get better?

Thanks a lot!

Agustin, there are definitely better options out there for you, especially in the world of a DSCR one thing. I would recommend that you find an experienced debt service coverage ratio/investor broker to help you shop a myriad of different programs across the country. 3.4 points is also a lot I do not believe even the best of brokers that should be charging 3.4 points if they want to maintain mutually beneficial arrangements amongst them and their clients. Find someone who is going to save you some dollars on the back end as well.

No one knows and anyone that's says it will be better by xx date is just guessing.

If your other properties are doing well and have low interest rates then why do you want to give that up?

Maybe just wait till rates are more favorable to buy something in Greenville?

You could also keep those properties and use a HELOQ against them to have the downpayment for your Greenville property. Then payoff the HELOQ as quick as possible. 

I would imagine your realtor can provide you with an extension form which probably is just a few pages that detail what is changing (rent, term, etc.). I don't think long term leases mean much. The fact of the matter is if someone wants to leave they will leave and if they don't want to pay you they won't pay you. We do a 1 year initial lease then we let it roll into month to month. If the tenant has a great history and is the one pushing the issue for their own security then we will re-up for 1 year. It hasn't been a problem that I am aware of. If the tenant has had some flaky moments, we just let it stay month to month. 

@Agustin Conti

I charge like 500$ normally as a realtor to screen and personally vet, you can do this yourself, hope you're a good judge of character though.

I didn't bother reading the whole post, sorry I'm drinking.

Multi year leases are great, I give a slight discount if they pick a longer lease, turnover is the killer of cash flow.

The only scenario I regretted was when I went to refi. The numbers mattered more, I ended up not cashing out and did a heloc on a different property.

If your plan is consistent, extended leases are great. Especially if you have an ideal tenant.

Quote from @Agustin Conti:

Quote from @Ray Hage:

As a couple people have stated, there is no benefit to a multi-year lease. Frankly, there is not much benefit to a one year lease either. I have 9 tenants and all are on a month to month lease except one because I have to do it through a HOA. I have some of these tenants for more than 4 years and I assure all of them very bluntly "You are welcome to stay as long as you want. Just pay rent and don't create problems."

With regards to rent increases, I let them know 2 months ahead of time that I will be increasing the rent through a text message and then about 5 weeks before, have them sign to the rent increase  and maintain all the existing terms. Over 8 years, I have had maybe 2-3 tenants move out over a rent increase. Regarding how much to raise the rent, that can vary on a lot of different factors

Hi Ray, my current 1 year lease has an early termination fee equivalent to 2 months of rent in addition to the signed one year "commitment", what is more "beneficial" to you as landlord on a month to month basis? if you don't have this "coverage"

Generally speaking it is hard to collect it. Let's say at some point, your tenant decides to just leave without telling you (for whatever reason), how are you going to collect? It is going to be tough to chase them down and get it. Do you really want to spend a lot of time an effort to collect that rent. I just haven't found it to be that useful. 

I am more fearful of getting a bad tenant who still pays rent but does many other stupid things on the property and having to wait them out till the end of a lease. To be fair, in my market, the rental demand is very high. I am not sure I would use this strategy in a lower demand place.