All Forum Posts by: Amy Kendall

My husband and I have done one 10% down investment loan with MACU. Good experience, plan a little longer escrow. Just seemed a little slower. I would plan 45 days.  I’ve also just talked with Wells Fargo, and they have an investment loan but only for single family homes. It’s 15% down. That may not be as helpf for you if your wanting to do multi units, but just a thought.

Nick,  it's  a great way to start!  I have a couple of clients who have gone under contract on homes just like that.  One in Lehi, one in AF, Both are great properties, are you only wanting ones that need the sweat equity?

I think you are running into two problems here. First, the R in BRRRR is for, "refinance," and not use a HELOC. As far as I am aware, most banks do not like to do a HELOC on an investment property that still has a mortgage, which is what your primary residence will become. Second, I agree with @Lee Ripma that the banks would have a hard time not believing you were actually moving if you had a signed lease to show them.  If that doesn't work out, you could move out to a temporary place, rent out the house and then there is no longer a question.

@Stefanie Jensen My husband was a little reluctant even after we had owned our first investment property for a little while.  It wasn't until I introduced him to a real estate agent who owned 19 properties and was basically financially independent in his mid 20's that he really came around.  We went out to dinner one night to talk about real estate, not necessarily investing, but the topic turned to that.  He said something like, "one property won't change your life, but ten will."  Somehow that really got through to my husband, and last year we more than doubled our passive income, even though he thought it was impossible.  Now he is totally on board and listens to the podcast every week!  You mentioned that your husband was okay with one investment property per year.  I would say to start with that, and then try and meet up with some other successful investors in the area for dinner or lunch.  He might just need to hear it from someone else, a real person in the area that is making it work.  My real estate agent friend now owns around 28 properties.  Most were brand new townhomes bought in utah county that he didn't make awesome returns to start out with.  You don't have to make the 1% rule on every property to be successful!  The deal you posted, repeated over and over would get you far down the path of financial independence!

@Christine Liu I work with a guy who knows Indy VERY well.  His name is @Steve Olson.  He lived there for a while and has bought three properties there this year.  I would get in touch with him. 

I would always run numbers, see where it actually makes sense and then knock off 20-30K, you don't want to offend people when making offers, I have had countless situations where we have sent in "low ball" offers to sellers, never to hear back, even when raising the offers later. How hot is the market in TX, for properties like this? I would look at how long the property has been on the market, how long a property like this normally sits on the market, and where the numbers actually work in your business.  If you are wondering how motivated they are call the agent and ask if this is a reasonable offer thy would consider at this time. They will let you know if it's worth even offering that price on, without giving yourself a bad name. Keep in mind if the numbers work, someone else will pay that, even if you won't. 

You can hire an independent Appraiser, but it's not something a bank will be able to use when you go to buy the property. It may be a good place to start, but it's an expensive way to go. Have you and the seller already started talking about a price? I would start there. What does he want to sell for? What are current rents, CAP EX, taxes, insurance, etc. Run the numbers and work backwards. What is an average CAP rate for your area? See if the math works, if it does, pull the trigger and see what the bank says in escrow.

Thanks for the replies.  I have started those processes already.  I would love feedback on what platforms are working well for you guys I have a demo with Buildium and Property Matrix. I don't like that Buildium starts at $45/month and then I feel like you have to upgrade to get the features I want.  I like Property Matrix, but it is quite expensive, but very flexible in customization and all the features I need are included in the price.  That price is much higher than the others I have looked at. 

I have a question for all those who manage their own rental properties, I have managed mine for over 11 years now.  I am now building my portfolio and also taking on clients for Property management, and I have found a few flaws in my systems.  I have recently looked at a few of the property management platforms and wondered what platforms people were using currently, and how they liked them.  I would like a few key features:

1. Ability to make Electronic Fund Transfers to my investors monthly,and pay my vendors. 

2. Track inspections and have a task come up when they are due, have an inspection form that syndicates with the platform that allows me to take photos etc. This will be stored with each property.

3. Be able to send out auto notifications to tenants for things like ( every other month to change the HVAC filters etc). 

4. Be able to  have potential tenants fill out applications through this platform and send out leases for signature directly through the platform and have it attach to the property.

There is more, but those are the biggest ones for me. Thank you in Advance for your advice!

@Lance Bautista I think this is very dependent on the market that you plan to invest in. Cash flow will also depend on the type of financing that you choose and the amount of your initial investment. Analyze as many potential properties as you can in your market and you will get a good feel for what a good deal looks like. I would recommend that you post a specific deal for people to analyze and give you their opinion on the deal. As far as the timing of adding another SFR to your portfolio, I would suggest you do it when you have sufficient funds. I have found that adding more rentals to my portfolio has helped to stabilize my cash flow/month.