All Forum Posts by: Andre Simmons

@Jack Seiden I have not thought about self management. I have no experience with the eviction process and screening tenant. Ultimately, I’m fearful that I will deal with a bunch of headaches and lose my time trying to manage the building, however this is something I definitely might need to consider. My goal is to create systems and have teams in place so I can have it as passive as possible. I guess that’s why I never considered self management. But thank you again you have helped me brainstorm about if I might need to pivot. 

Hello everyone just reaching out to see if any one has a good property management company they can refer me to. I have a 4 unit property in NE Washington DC that has been mismanaged unfortunately and looking to find some help. Thank you in advance! 

@Jake Song You might want to look into the 203K FHA loan or Homestyle loan. I believe this is what @Andrew Postell was referring to above. If you want to live in the property both offer similar low down payment options 203K (3.5%) and Homestyle (5%). You can save your cash and use OPM for the renovations. Both loans let you wrap your renovation cost into your mortgage. 

@Charli Cook I am in the DMV area and had a similar experience with 203K and FHA. @Andrew Postell is right the 203K loan is an FHA loan product, the main difference is you can wrap your renovation cost into your mortgage.

I purchased a 4 unit property in DC in July 2020 and was going the 203K route however due to the pandemic I had to instead choose for the traditional FHA loan. During this time we started experiencing the "drive by appraisals" and the bank was nervous about sending in HUD consultant to verify the scope of work inside of the units since tenants lived there. Instead of missing out on the opportunity I decided to go with the traditional FHA loan and burrow against my retirement to do my renovations. Since rates were so low I am now looking at FHA options but not refinancing out of the 4 unit. Currently I have a 2.25% interest rate on the 4 unit and cash flowing nicely. It doesn't make sense for me to refinance to a higher rate with interests rising. Some of the special circumstances to having two FHA loans are being relocated by your job (I believe its 50 miles out) or your family expanding. There might be a few more so please research but one thing to consider does it make sense to refinance in the market we are in now or see if you can fit in any of the special circumstances without having to refi. I hope this helps!

 Thanks I will reach out to them today! 

 No, sorry I was saying they are going for 200k more than the 4unit I acquired. I was able to get my property at 535k and most 4 units in DC are going for 700k and higher. 

Hi everyone,

Does anyone know of any companies that will provide a HELOC on a quadplex. It is a owner occupied property but I want to tap into the equity to continue to invest in other properties in the area. I do not want to do a refinance since I was able to secure a 2.25% interest rate during 2020 and the property is cash flowing for me. I purchased the property below market value and also done renovations on 2 of the 4 units while the other 2 units are still in good condition. Most 4 units in my area are going for more than 200k but I haven't had any luck with lenders so far. I am going to continue to call around and try local banks/credit unions in my area but definitely wanted to see if anybody had any insight. The property is located in Washington DC. Thanks!

What would be a min. amount you want to cashflow on a SFH for a buy and hold property? Also what is an ideal range to shoot for?