All Forum Posts by: Alex V.

This. We are doing the same thing with my clients right now. You have to take a long, portfolio based perspective to financing rentals right now. When you think about mortgages like a combination of a loan and a ton of embedded interest rate options, trading down the yield curve in an historically all time low, flat, and rising interest rate curve is completely irrational. For every dollar of mortgage you borrow, you get a $1 american call option. When you go from a 30 to a 15 year mortgage, you are basically selling 15 years worth of options. The spreads to make that an economically rational decision haven't been there for a long time. When you start adding the fact that rates continue to rise, the most sensible thing to do is to take as long of debt out as you can now. In 5 years, if you are borrowing at 7-8% you will be happy to dedicate the extra cash flow to paying down newer mortgages instead of having it trapped in a 15 year because it saved 50bps. If in 5 years, rates are lower, you can always refi.

@Vaughn Smith thank you just shot you a reply

@Dave Cali 3s and 4s

My partner and I are starting to offer on residential multi-families in Newark, NJ. Does anyone here have a recommendation for a property manager that would handle properties in Newark? 

@Vincent Priore might know a thing or two about 203k contractors

Thanks for all the responses guys. We are here now and staying through the weekend so feel free to reach out!

@Andrew Giunta south jersey, philly area, and upstate NY all have places with decent returns that are driving distance. There are pockets of Newark that are a little nicer than most and have solid cash flow numbers as well. Your profile says you live in Hillsdale? I grew up in RV and went to PV. Am up your way pretty frequently and am happy to grab a beer and discuss more options. Honestly I would explore other areas too. If you are paying a property manager what difference does it make other than psychologically if a property is a 3 hour flight or a 4 hour drive? You're not going to be answering maintenance calls anyway.

Hi @Robert Jordan thanks for reaching out. I'll drop you a line if we head out that way. I was planning on stopping by the Alchemist to load up on Toppers so maybe we can take a detour out to Montpelier after visiting Stowe. 

Thanks for the response and referral @Ben Granja

@Ben Granja@Blair Knowles. We'll be up late Thursday night through Sunday so I'm sure we can find a time to make something work. Amen to finding deals in any market. Just need to look harder :) Looking forward to hearing from you.

Hi Vermontsters, my wife and I are taking a trip up to Burlington this weekend and I was curious if there are any active BP members in the Burlington, Colchester, Winooski area and what the landscape is there. I imagine most of it revolves around student rentals for UVM and St. Mikes students/profs. Anyway would love to meet up with some local investors. Beers on me.

Hi @Clifton Frazier welcome to BP! NYC area here so in the same boat when it comes to the local markets being really tough to get started in. Turnkey was a great first investment property. It's an easy way to learn a lot about the process, while hopefully getting a decent cash flowing rental property. The returns aren't like what they are when you hunt for deals on your own but it's an easy way to get skin in the game while you learn to get your docs in order, the purchase checklist, research sub-markets, and start building our your systems for managing the admin side.

I've done a little research on the Birmingham market happy to share what I know myself. @Clayton Mobley is a wealth of information on the area. I highly recommend reading his posts about Birmingham, and the turnkey vetting process, which doubles as a great set of questions for property managers if you go it on your own.