All Forum Posts by: Beau Watson

Hey BP! 

I need resources and/or advice on the direction to take when it comes to grabbing equity out of my small residential portfolio. A couple of items I would like to accomplish but not sure if it is too much of a ask. 1. I need cash-out. 2. Would love for it to be under one commercial loan through LLC so my personal credit is not associated with it. I am open to keeping my current loans in place and doing some sort of HELOC on one or all my properties top grab the equity but that does not accomplish the commercial loan portion. Like I said, not sure what exactly can be accomplished.

The details: Five residential properties consisting of 10 units. We are doing a mix of LTR and STR. Last year without STR we grossed about $120k on 6 units. This is with me living in one unit and my mom living in one unit (Thank you real estate for allowing me to get my mom living for free and retire her!!) and 2 of the STR units not coming online and ready yet. I am moving and and we have 3 total STR units going now so our anticipated gross should be around $180k for 2023. I currently owe about $1.3m. All 5 just appraised in the last 30 days a combined $2.2m. I currently work a W2 job and bring in a little over $150k per year.

The struggles: 3 units are STR so the revenue of course can fluctuate. 1 units we have 6 months worth of data to prove revenue. The other 2 units we only have 3 months to prove revenue. I know banks are not in love with this. Another struggle is my utilization is screwed because I did not have a W2 at all in 2022 ( thanks to house-hacking and frugality lifestyle) and until May of this year. My credit is not longer at my normal 750. We maxed out two 0% credit cards to finish up our airbnbs and without a job this does not look good on credit.

In my mind this seems like an easy win for a small bank because the cash-out will be used to pay off credit cards from real estate remodel and buy more real estate which they can then loan on. This seems to be not so easy outside of my mind and finding a bank willing to help. BP community, Whatcha got for me??!?! 

As a lot of people have said, I do the open house with scheduled time slots. 15 minutes time slots. I have a phone call with each potential tenant before scheduling them. I send them a thorough email giving them qualification standards, instructions on how to schedule a viewing on our date of open house. If all instructions are followed properly then they get scheduled. A calendar invite is sent to them immediately with all details about their specific viewing time. That also gives me the chance to place their phone # and name in the notes section for myself so i can text them 15mins before their viewing to remind them. This system has worked numerous time for me over the last couple of years.

@Roy Gottesdiener

Look up Shannon Robnett. Myverticalequity.com

Awesome dude! Awesome organization!

@Shelita Compton

Holding…. I might unload my headache in Warner Robins next year but otherwise cash flow is good. Appreciation is still ticking up.

@Slade Sizemore

I am dealing with this while I house hack.

I called the electric/water company. Got the average for the house over the last twelve months. I then wrote in my lease a flat fee divided by the number of units for both water and electric. Heck, you probably will need to do the same for internet and trash as well.

Sometimes you will make a few dollars sometimes you will lose some. But it should wash out pretty good.

Good luck with the new purchase!

@Mike Szabo

Who do you like for a contractor? About to start a rehab out in Canton, NC.

Good morning BP!! 

Looking for some recommendations. 

I have a 3/2 manufactured home I am under contract for in Canton, NC. I am looking for a general contractor to be able to do a remodel. This is a 90s model home but will need a bit of everything. I am aware all contractors are busy as can be, but if anyone has recommendation on who I can call before I just start going down the list on google it would be very helpful. 

The 2nd project I have going in the area is building a 3/3 home near Lake Lure. I have the land and I am in the process to get the well and septic permit. I need to find a custom home builder. I do not want to use some generic builder that only has 20 or so plans to pick from. Would love to find someone that is a bit more "custom". We are not wanting something extravagant just need something specific because we are going to use it as a STR. My wife and I went old school and checked out 10 or so home plan books from our local library and have a good idea in mind for what we want. If any one has a builder they have used I would be very grateful for a recommendation.

Lenders have been easier to find on my real estate journey but if anyone wants to drop a bank they like for construction loans I am always happy to call a recommended bank first. 

Thanks BP! 

@Mitch Davidson

Hey Mitch, not to take over the thread but do you have any building loans? I am building a home in lake lure I’m looking for a construction loan.

@Mike Szabo

Congrats Mike! Great approach finding out the zoning and making the conversion!

@Mindy Jensen

Rentec direct- tenants can use ACH or credit card. Has an app for tenants. Can be set up with auto payments.