All Forum Posts by: Ashby Tyler Cappelmann

Hello everyone!

I wanted to know what you all would do in my situation in terms of finding a lender for my rental. I have an opportunity to buy a single family home in Southern California for approximately 300k. Estimated home value is 700k and after speaking with a property manager in the area it should rent for around 3500. My question is what’s the best approach to find a lender that will give me a conventional loan that will parallel today’s interest rates. I don’t live in California so I’m not sure if i need a nationally qualified portfolio lender or a community bank that would give me an 80/20 at a low interest rate. I have the 60k for the 20% but I simply wanted to know more information about how to find the correct lender. Thanks to anyone who responds.

Hey guys!

I wanted to get some advice from some more experienced turnkey real estate investors. I'm currently reviewing the purchase of some turnkey properties in northeast Ohio. The company is very reputable and recommended in the bigger pockets forums. I have reached to them and been put in touch with a representative. I've been very pleased with the level of communication I've received in addition to the quality of property they provide. I won't name them because I don't want this post to seem critical in any way. I simply want to get some professional opinions. With each of their listings they attach two separate "Year 1 Performance Analysis" spreadsheets. One is formatted around the property being paid for in cash and the other is formatted around the property being paid for with leverage, specifically 20% down. I'd also like to add that each and every property is freshly renovated with a tenant in place before closing. My questions deals with the costs they account for. If you buy a property from them they retain management responsibilities so they obviously account for the 10% of gross rents. My biggest concern is they account 2.5% for maintenance, no percentages for vacancy and no percentages for capital expenditures. If the property is paid for with leverage the cash flow numbers on all the listings I've looked at have been relatively small and my concern is that if true percentages were factored in for maintenance, vacancy and cap ex (specifically 5-10%) the property wouldn't cash flow at all. If the property was paid for in cash everything would be totally fine but it would take a long time to acquire properties at 80-100k a piece. My biggest question is what's the standard analysis percentages when a property is turnkey and freshly renovated? Is it lower that the traditional 5-10%? Are cap ex and maintenance accounted for in much lower percentages than normal? Are turnkey properties best paid for in cash? Thanks in advance to all those who provide feedback. Happy hunting!

Hey guys! My question relates to how the process of acquiring 10 mortgages in your name looks? I know there are residency requirements for many conventional mortgages but are those strictly FHA loans or something like them? If I want to purchase an investment property and it's only my 2nd mortgage can I go to basically any mortgage broker or lender with 20% down, acquire that investment property and repeat until I hit 10? Or does it have to be a portfolio lender? If so, what are some of the differences from a portfolio lender that may stray from the terms and cost of a conventional home loan? Any help or information will be greatly appreciated. Thank you in advance.

Hello everyone! I was wondering how fellow investors fully utilize the cap of 10 conventional mortgages when 9 of them may all be strictly investment properties? If I understand correctly, using any type of FHA loan requires residency and I was wondering how you all get around that. My wife and I are currently in the process of closing on a 203k loan for a duplex with which will be house hacking. Another great deal popped up on the MLS and I was wondering how I could get a conventional loan to purchase it without meeting the FHAs residency requirement? I really like Lima 1 Capital and their structure for purchasing residential properties but I obviously want to try to avoid using hard money as long as possible. Any assistance and time will be greatly appreciated. Thank you in advance.

@Kevin Prentice I couldn't agree more. Once I started down the rental property investor path and being current military myself I started looking for ways to buy properties in areas I was formerly stationed. It's an endless revolving door of quality tenants! One or more people gets re-assigned to another location and notifies the incoming group of people of where they live and most of the time someone takes over. Beautiful. Is there a general area that's hotter in terms of appeal to military tenants? I'm assuming port royal would be best for Parris Island and laurel bay best for the air station. Lastly Kevin I may be acquiring a really nice mobile home property in the laurel bay area soon. Does your company manage in that area? What I said your fee for a single residence? Thanks so much for your input I greatly appreciate it.

@Troy Gandee ok great thanks so much for all the help I really appreciate it.

@Troy Gandee wow thanks for the help! When you talk about "converting" a property into a rental, is there some sort of mandatory formal process for that? We're going to be living in one side and renting the other for roughly 3 years and turning it over to property management when we leave the area to have tenants occupying both sides. I was unaware that there was any sort of notification process that we had to forego. As far as going about getting a policy for a rental property, what would the offered listing title of something like that be at an insurance company? Just simply "rental property insurance"? Any estimate on what something like that would cost for a duplex? I know it's contingent upon coverage value but I was just wondering if you had any numbers experience there. Thanks again for your time I really appreciate it. By the way I'm from Beaufort.

I also forgot to ask if we could hold off on starting an LLC at this point and create one once we get to our "home" market of Clemson, SC which is where we will be settling down for good. Thanks again in advance!!

Hello everyone! My wife and I are currently in the underwriting phase of a 203k loan for our first rental property which will be a duplex in the Cape May, NJ area (08204). I was wondering if anyone has any insight on whether or not we really need to form an LLC at this point and if so, does anyone have a referral? Is this something that should be done on your own or is it worth the money to pay an attorney? As I said this will be our 1st property and we're going to be house hacking. We are military and scheduled to leave the area in 2020 at which point we will be investing in the northwest South Carolina market from there out. This very well could be our only south jersey property. Having said that, can you transfer a property from a NJ LLC to a SC LLC? Any insight on this that fellow investors can provide will Ben greatly appreciated. Thank you.

Hello everyone! My wife and I are currently in the underwriting phase of a 203k loan for our first rental property which will be a duplex in the Cape May, NJ area (08204). I was wondering if anyone has any insight on whether or not we really need to form an LLC at this point and if so, does anyone have a referral? As I said this will be our 1st property and we're going to be house hacking. We are military and scheduled to leave the area in 2020 at which point we will be investing in the northwest South Carolina market from there out. This very well could be our only south jersey property. Having said that, can you transfer a property from a NJ LLC to a SC LLC? Any insight on this that fellow investors can provide will Ben greatly appreciated. Thank you.