All Forum Posts by: Allan Smith

I have done this as well. There is likely a clause that the home is owner occupied. But just make your payments and it would be very unusual for anything to come up.

Lots of lenders will do construction loans that roll into rental loans. Start with local banks, talk to their commercial loans dept.

Oh yes appreciation will come. 10 mile is a little far tho. That job site is unlike anything I've seen. Goes further than the eye can see.

What can be done to test your theory? Can you verify revenue projections?

Discuss next month's rent with him. Depending on what he says, begin a conversation about how your house may not be a fit for him. Make it clear rent has to be paid. Expectations alone could be enough for him to borrow from family until he gets a job.

I've been told there's less competition at 20 to 75 units because the hedge funds and such don't mess with the smaller deals.

one huge advantage to bigger deals is they can support their own dedicated staff like a full time pm or maintenance man.

if your goal is 300 and beyond, the honest answer is go for the big fish. 75+. It's way more efficient. Instead of 5 closings, it's one. One underwriting. One capital raise. Etc. Slightly more effort but way more results.

Pm should hold rent through end of month so they can float payments to vendors. If they pay out rent immediately they can't pay for repairs. They would have to request an owner contribution every month which we can all agree would be dumb.

or, when you sign up with them, you can send a repairs deposit. This muddied the waters.

My listings all say that we do not accept section 8 vouchers. This is an optional program and landlords obviously are not required to be in it.

Only thing you really need to do before getting an offer accepted is pre-approval from lender. But if you're doing hard money you don't even need that because they approve everyone as long as you have a good enough deal.

everything else comes after contract if you were focused on most efficient forward movement.

make offers. Many.

Person ally I think all this goes away if you own better assets. Get rid of these. Buy in better neighborhoods or go to different asset class altogether like syndication or NNN.