All Forum Posts by: Oliver Trojahn

Have a handy man non-licensed does great work.

Bought a $400 hot water heater from Home Depot he picked it up and installed for $60. Three hours of labor.

Total cost is $460.

When is everyone meeting again?

Daniel,

No. Conventional financing on a single family home will be 20% regardless if your credit score is 800.

However, the new guidelines allow 15% down on investment properties. If you go the 15% option you will have to pay PMI which, as an investor, you wouldn't want to pay.

I saved money from my normal paycheck and used a partner who did the same. For the next deal used rental income from the first rental, some of my own savings, and even took 2,000 out on a credit card with a 0% intro rate (love that one) for the next down payment, partner did the same. The third one we waited a year and had enough rental income from the first two for the third down payment. Sold the 1st rental for a 30k profit and dumped that into two more rentals.

Now we are going get a business line of credit against our LLC using are properties as collateral. This will provide a lot of downpayment money and it wont even show up on our personal credit scores when we get our conventional loan.

At this point all of our rental income will provide enough downpayment money for about two houses a year. The line of credit will allow for 4-5 houses a year.

Thanks.

I would rather have 100 SFR's than 100 doors in multifamily. In my market and I assume this would apply to "majority" of markets across the US a single family home will provide more profit per door per month than any Multi-Family Door (This includes expenses). Combine that with a better shot a appreciation and opportunities to sell for top dollar we have quite an investment vehicle.

SFR's will also provide long term tenants (typically easy to manage families), they are also easier to acquire. Everyone has a much better shot and getting a amazing deal on a SFR than a Multi due to the housing "BUBBLE BURST". You are buying from an investor with Multi's, investors dont like to lose money and are smarter than banks.

I think people should by a mixture of SFR's and Multi's. Multi's are profitable and I would recommend buying them. I just think a SFR is much more profitable.

The loan i spoke of is a 5/1 ARM based on a 30 year amortization.

A local bank that keeps their mortgages in house cannot offer 30 years fixed. It is all ARMs. You will never find that.

I have found local banks offering 15 year fixed tho!

I would recommend local banks for this, a bank that keeps the loan in their portfolio. I have a local bank that will cash out 80/20 all day. The rate is about 1% higher but that is fine since i buy through my LLC and the houses i buy are about 30k.

I second that. You will want a 22 x 22.

I just recently had a 20 x 20 installed on my small city lot. Two cars will fit comfortably in this space. However, a big SUV may not fit to well. We have two cars.

Notice how I said, "Re-Occurring". Not one time payments each month. Monthly re-occuring payments. They have no choice

All of my rentals are paid via "Re-Occurring Electronic Fund Transfer" on the first of each month. I use erentpayment.com, they charge $3 for this service per transaction. The tenant receives an email to set this up and is secure for both the landlord and tenant.

It is a requirement of the lease that "re-occurring electronic payments must be set up". I tell them that before they fill an application out. It also insures they have a bank account.

Wouldn't do it any other way.