All Forum Posts by: Andrew Hinspater

Hello everyone, 

working on getting first rental property listed out what are some general qualifications or screening questions that I should ask for prospective tenants looking to rent. Any wisdom or experiences that could share with your own experiences thay you wished you did would be helpful as well.

Thank you

Good afternoon to everyone! I was wondering if anyone has handyman/keyholder that they use in Saint Louis? We are going to be self managing our properties from out of state, and need someone who can show prospective tenants property, allow maintenance workers/inspectors in, and to hold our key. Thank you in advance, I hope you all have a great day!

Hi Bigger pockets community,

I’m seeking some advice on a frustrating situation we're dealing with. We bought a property that passed inspection and thought we were on our way to a successful rental. However, it's been six months since we hired a property management company, and the property is still not rent-ready.

Now, the management company is telling us that we need to spend $8,000 to get the property rent-ready after a pagedale occupancy inspection. This includes things like cutting down the grass and installing a drain in the basement. We don’t feel these are necessary, especially considering that the property already passed inspection when we bought it.

We're concerned that we might be getting taken advantage of, and that these costs are inflated or unnecessary. We want to ensure the property is safe and habitable, but these expenses seem excessive. Any advice to clearly seem minimum rental requirements for st louis so we can bring this to their attention or better inform our own situation would he great.

Has anyone else dealt with a similar situation? How did you handle it? Any advice on how to push back or verify what actually needs to be done would be greatly appreciated.

Thanks in advance!

P.S we were quoted 2300 to remove overgrown vegetation along fenceline and trim the bushes in the front yard. 4000 to install a drain and the base of the exterior stairwell for drainage.

Hey Robin, yes we've found no DSCR that will go below 75K for the property value. The properties we buy are entirely turnkey and around the 40-65K range. FMR in our markets is around 900-1100 monthly for such properties, so the cashflow is there. We have the capital to buy properties but no way to refinance without waiting at least 6 months. I'm open to a portfolio loan for the properties but I haven't found any without seasoning or that will cash out. Are there any that you would be aware of?

It's frustrating that the only thing standing in our way from fast paced growth is the seasoning period on loans, if there is any sort of way to get around it we're more than open to trying the strategy out! 

Good evening to everyone! I'll keep this post short and sweet: We are currently buying two properties under 50K each, but total purchase price for both properties would be 80K. Unfortunately, we have seen that many lenders ask for 75K PP per property. Are there any 30 year DSCR or Portfolio loans that would fund such a deal? If not, are there any that would allow us to refinance with no seasoning afterwards? Thank you for your answers, and any other creative financing suggestions!

Thanks for responding Joseph. We've run into some lenders who don't season but they require you to use their Hard Money services. This seems great, but I've found them to only lend 80% of the purchase price and to charge a hefty amount of points. I'd prefer to use our other Hard Money partners who will finance 90% and charge 1-2 points. The issue is they don't do DSCR meaning we have to go out and find a DSCR lender who's willing to do the shortest amount of time for seasoning. We aren't currently doing this with any homes we have, I would like to find a DSCR lender before we buy another one.

Thanks for the reply Kate, our current properties are in Saint Louis, and we buy them mostly turnkey. As such, the sooner we can get out of the loan and get cash back is the second we can go into another one! We have a HELOC on one of our properties that allows us to get hard money loans. When we cashout, we can pay back our HELOC, then roll into another property. Because of our situation, the faster we can get the cashout the more properties we are able to buy. The fees on holding aren't really the issue, it's having our money tied up.

Is anyone aware of any good 30 year DSCR programs that will fund 80% of ARV, have no seasoning requirements, offer cash out? I've found Lima Capital, but they have a seasoning period behind them. At the end of the day, if I need to wait for seasoning, it won't be the end of the world, but it would be nice to not have to stick in a hard money loan for 3 months+! Thank you for any help and advice!

Hi everyone, my business partner and I have just purchased our first rental property, and are now thinking of the best way to manage the property from a business perspective. We've looked into and are pretty convinced we would like to make an LLC to manage the property (although if anyone has any reservations about that, we're open to other perspectives), however we aren't sure if we should make the LLC in the state we are buying the property in or if we should make an LLC in another more "corporate friendly" state. What advantages do we have by making the entity in the state our property is in that we wouldn't get anywhere else? Does the state your LLC is in really matter with only a handful of investment properties? Google searches on this subject haven't proved to be succinct or clear, so any help would be appreciated!