All Forum Posts by: Ashley St. Gelais

Hi @Sam Wydner

Hi @Rocky Daniels

Sounds like you've set yourself up with some nice properties. I'd suggest checking for a commercial lender who wouldn't mind doing a blanket loan on all the properties in order to give you access to capital. Maybe you can even find one that will do a HELOC so you can use it when you need it and pay it back while reducing the interest payment.

I've found commercial lenders to be a TON more flexible than conventional lenders.

: )

A

Hey @Matt Gray

Hi @Esther N.

Hi @Robert Cornoyer

Start reaching out to folks now. You want to find someone who will give you the time of day and someone you trust and like.

Tell them your goals and your barriers and be open about what you are doing to get where you want to go.  Show them you are motivated and taking action to get there.

Then ask them to set you up on a listing cart so that you can start watching the market and running numbers on specific properties. It'll give you insight to your market and which neighborhoods may offer the best returns once you are ready to go.

Let me know if I can do anything else to help!

A

Hey @Chris Bruce

Why not buy an owner occupied multi family with 3.5% down payment... Or borrow against your retirement plan or insurance plan to get access to capital...

A : )

Hey @Christian Podedworny

Those house prices are really low for what the rental market demands in your area! 

I love using leverage to grow your portfolio. If you own that first place outright I'd absolutely recommend getting a cash out refinance and then use that money towards your next investment property. In fact, it might be worth it to you to get a HELOC on that investment (If you can find a lender who will do it) so that you can use that line and pay it back over and over again.

When you get into rental real estate in the right manner, the more property you own the bigger possible income you can create for yourself. 

We've found that investing in multi family properties is a great way to increase the ROI even further. With an owner occupied FHA loan you can purchase up to a 4 unit residential property with just 3.5% down...

Or maybe you can use the cash you get from cashing out//getting a heloc to buy a multi... or both!

Hope this helps! Let me know if you have any more questions.

A

Hi @Rick Turman

I appreciate the idea behind the 'rules of thumb' that can be used to assess a deal, however I believe that you need to dig into the details for each and every investment before you decide if it is worth investigating further.

If he is trying to sell you the properties he should be willing to do the research to get you the numbers you need. Ask for his schedule c to see what he's reported to the government and call the utility companies yourself to see if they will give you an average cost monthly then multiply that by 12 for your annual costs.  

Remind him that this is a business decision and you need x,y and z to analyze the opportunity.

Lastly, if he is willing to negotiate it may not be worth walking away from at this time...

Hope this helps!

A : )

Hi @John O.-

Great steps so far.  As you get into looking at more units and renting them out - you'll get used to what renters look for and like.  Especially if you are doing the showings yourself - first hand feedback from tenants is like gold!

We've found that smallish improvements can make or break a unit. Our general improvement plan is paint, remove all carpet and replace it with vinyl.  Also when looking at units we try to invest in buildings that have the most popular number of bedrooms for our market. (2 bedroom apartments are very popular here.)

People tend not to like stairways that are hard to move stuff up, bedrooms that you must walk through to get to other bedrooms (railroad style) and run down apartments.

Hope this helps!

A

Hi @Tamiko Kettrles-Woods!

First of all, you've got to get clear on your goals. 

I assume you want the best return for your investment with passive monthly income?

If that's the case you've got to start analyzing deals in your area. I've found that the more units under 1 roof the better. In the case of FHA the max you can do is 4 and they all have to be residential. So hook up with a lender to get you approved (or let you know exactly what you need to do if you aren't quite there yet) and connect with a Realtor who can set you up on a listing cart of local multi family properties.

Run numbers with an investment calculator to show you what you'd need to pay to live in the property and also what returns you can expect when you move out and rent all units.

Keep the questions coming if you need more info!

A : )