All Forum Posts by: Derek Boone

Hey @Matt M., we bought the duplex about 2 months ago with a trust, just looking to pay back the trust, get long term financing, and put a little more money into it so that we sit at the 20% mark.

@Travis Sperr @Account Closed thanks all! How would a line of credit work? I'd like to avoid any kind of adjustable rate product since it seems almost certain that interest rates will go up. 

We currently have about 10% into it and would be putting another 10% in when we get the mortgage, so all in 20%. It would be an owner-occupied duplex. 

I've spoken to a couple lenders (Wells Fargo, Chase, F&M Bank) and the hangup seems to be on 3 things - that we've had the property less than 6 months, that it's a cash-out refinance or "delayed financing", and the amount to put down. 

Duplexes in Denver don't come cheap and we can only put in 20%, but the 3 lenders I mentioned above are all saying 25-30% down. That's why my thought was to go with a portfolio lender since they are more flexible on their policies.

Thanks for all the input so far!

Hey @Travis Sperr, it's kinda complicated. We've already purchased a house and basically need to do a cash-out refinance. It's been less than 6 months so there's some seasoning complexity too. Thanks for your help!

Hi everyone, we have just moved to the Denver area and are trying to learn more about the market. What are some good banks to work with? What LTV do they require and are they investor friendly? Lend to LLCs? Thanks!

Almost every neighborhood has duplexes under $300k, but your highest appreciation areas will be those that haven't been touched yet by development. Madison, Old Hickory, Bordeaux, North Nashville to a lesser degree, West Trinity Lane, Donelson, Antioch, Percy Priest Lake area, those should all have multifamilies under $300k.

I'd be happy to meet up sometime for coffee or whatever to discuss more!

Hey @Jeff Prather. I generally don't like HOAs when it comes to investing - not sure how much yours is per month but they're usually a significant chunk of cash that you don't have control over. Let's say it's $200 a month. The HOA may prioritize parking lot upgrades or lawn maintenance, whereas if that $200 was in your pocket each month you might choose to reinvest in another property. That $200 is an added expense that usually kills the cashflow.

For the same price you could easily find a multifamily and it definitely wouldn't have to be in the suburbs. There are plenty of neighborhoods in Nashville where you can find a quadplex for under $300k, or a duplex if you're looking for something fixed up. 

I budget 5% for repairs on all properties, and a flat $200/month for Capex on single families or 7% for multifamilies. This will obviously differ depending on your tenants and the location but it's a general rule of thumb. Don't forget to budget for property management (6% multifamily, 10% single family).

Hi @Kennith Osborne, Sneaky Ninja Inc. is great for property management. The broker, Brian Bequette, has been in Nashville over 20 years and invests in the area as well. He's done turnkeys in the past.

We just set up a regular LLC. My understanding is that series LLC's just haven't been fully tested for real estate so it's unknown how well they'll hold up in court at the moment. Obviously they are designed to but it's a relatively new method of organization so there's some hesitancy with using them.

Hey @Rhea Jackson, I actually asked a similar question about Nashville bank financing a couple months ago: https://www.biggerpockets.com/forums/49/topics/366...

Most private banks in Nashville will allow 15% down minimum for non-owner occupied. I've talked to a few and Simmons seems to have the best terms for both long term loans and construction loans. I'd be happy to help if you have questions.

Brian Bequette and Sneaky Ninja, very personal attention.

Welcome @Jesse Birdwell, let me know if you'd like to meet up for coffee sometime! I like getting together with new people on here (I'm fairly new as well).