All Forum Posts by: Pete M.

@Greg Satter Welcome to BP. If using conventional loans, then you're stuck with waiting the six months until you can cash-out refi. There are inventive ways of getting around this, but you have to plan those out from the start (including putting your rehab costs on the HUD-1 at closing, or using private/HML to put a mortgage against the property). I should say that you can cash-out sooner, but you're restricted to using the value you purchased the property at, not a new ARV.

You could also explore finding a local bank for a portfolio loan; since these are non-conforming loans they keep on their own books, they make the rules entirely... including how long you have to wait for seasoning.  Rates and fees will tend to be higher than with a conventional conforming loan, though.

@Jimmy Kim  Haven't needed her services in a while, but unless something has changed, she's definitely worth a call.

Suggest starting here:  https://www.biggerpockets.com/...

Best to chat with some agents and get a feel from them as well, and same goes for PMs.

@Ryan Guffey May depend on the type of investment you're looking for.  I spoke with Brett Ferrell at Farmers Bank when evaluating a small apartment complex, though we didn't end up closing on that property.

@Gary Garcia  I've got a few Sec 8 rentals (SFRs) in Oklahoma City.  To avoid repeating much of the same, I'd say @Kiera Underwood is spot-on, and @Noah Chappell as well.  The rules and processes will vary per area (and per housing group).  Once COVID hit, many housing groups also kind of "froze," meaning they weren't doing inspections--which then meant they weren't approving applications for new tenants or moves.  As you can imagine, that basically then means you couldn't place a new tenant (unless you were willing to let them live for free, since housing won't pay until inspection is done), and tenants trying to move were suddenly stuck in limbo.

Sec 8 tenants also often have large families, so go for durability when doing a rehab.  Flooring life will be much shorter than in a traditional rental (in many cases), for example.  Screen the heck out of the tenants, you need to find the better ones to make it worth it; bad tenants will cost you way more than you stand to gain.

Have not got into the value-add commercial multifamily space yet, but it's where I want to be.  Basically BRRRRing with a larger property, but I know the similarities pretty much stop there.

As others have mentioned, prices are generally too high for the risk involved, unless you can get close to the source (off-market).  Have gone under contract on a couple heavy rehab MFRs, but had to walk because sellers were demanding a premium for what is essentially one step up from a dumpster fire.  Sad part is, they may very well get it right now.

@Stuart Fox  Keen to hear more about what you're doing.  Looking in the central OH market, grew up in MI, and went to college in IN.

Haven't had a chance to look and verify if the above is true, but someone post a source if they have it, please.

KC technically also requires you to register your rentals at a rate of $20/yr/unit, but it's also not tracked well.  They say they can do inspections, but seems only likely if they get a complaint from a tenant to draw attention.

@Levi Smith Sounds great.  Happy to connect you with my local agent/PM, he's got some other SFRs out there he manages for other investors.  Might be able to help you find a buyer (even myself if the deal is right, of course).  DM me if you want his info.

@Levi Smith Welcome to BP!  Are you focused in any specific parts of town, and which types of properties?  We buy through a local agent, but he finds both on and off-market deals.  Happy to connect you with him (I rely on him to vet the details for myself).

@Ben Bond SFRs are much more abundant, as is typical for many Midwest markets, but you can still find 2-4 unit residential multifamily around for sure.  With the latest surge of buyers, though, prices are going up and margins are going down.  Same is especially true for the larger 5+ commercial multifamily, and there's generally less inventory there to start.

Renton is still a good place to be, especially from an investor perspective!  It's appreciated a ton and is more affordable than many parts of the city.  Boeing is being hit hard, though, as you can imagine.