All Forum Posts by: Brooke Andrea

Does anyone know where next year will be?  I couldn't make this year unfortunately...

@Eddie Miretsky

Rent To Retirement is a national turnkey marketplace that mainly focuses on build to rent, new construction investment properties. There are many builders/sellers that showcase their inventory on their website.  I've used them to acquire a few rental properties a year for about 6 years now, and will still continue to use them if I like the investments I see on their site.  One thing I like is that they negotiate with national builders to get higher discounts and incentives on homes far beyond what I could as a small investor only buying 1 to 2 properties a year.  That means I get access to better deals through their community than investing on my own because they have better negotiation power as a large investment group.  Rent To Retirement vets investment locations, builders, property managers, lenders, insurance providers, etc. to bring together a comprehensive team in each location to provide the investor with all the key personnel they need to have a successful investment experience in one place. It's quite different from the traditional turnkey model where the seller is rehabbing a 100yr old home and also managing the property, which I've invested in the past and not had a good experience with.  That is also why I prefer new construction homes over older homes, even if they are rehabbed.  I actually think there is quite a bit of conflict of interest if the person selling you the home is the same person who has rehabbed the home who is also the same person managing the home. What I've enjoyed about working with RTR is the fact that they are completely independent of all these parties and they can offer me unbiased opinions on different investment locations & properties as there are many different builders/sellers to choose from.  They can recommend specific investments based on my goals instead of just recommending what they are trying to sell me. If you were speaking to the actual seller of a home, obviously they are going to have a huge bias on why their property is better than other options. I've worked with Adam & Tommy at Rent To Retirement, and they both have taken a ton of time to educate me about multiple markets & investment options so I can learn & ultimately make an investment choice that best fits my goals. I highly recommend them to anyone looking for a team that really takes the time to understand your goals & offer expert advice to a beginner on how to get started investing from a distance.

We just completed a cash out refinance on new construction that at 75% LTV we pulled all of our equity out to reinvest. With a HELOC, we would have only been able to access some equity, but as much as a cash out on a rental property. I had a hard time finding a lender that would do a HELOC on a rental more than 60% LTV or that capped it at certain equity limit. Does anyone have any recommendations for lenders that will go up to 75% or 80% on a HELOC for a rental?

Ryan,

We've only used fixed rate mortgages. Even with rates going up, we are still buying with conventional loans as they are the best terms. I know an ARM may be able to get a lower rate initially, which is something we will probably explore, but to date we have only used fixed rates. If rates go back down in the next year or so, we will likely refinance to the lower rate to cash flow better, and we anticipate rents to go up year after year as well like we have seen in all our rentals so far. That is why we are not concerned about current interest rates as it's only a point in time.

@Dave Rodney

Hi Dave.  No, there is no requirement for that, and that is not factored into if you want to buy a rental property or not.  We actually bought two different rentals out of state before buying our own home since we live in an expensive market where it was cheaper to rent.

@Max Sack

We have had many rentals purchased through them for many years.  No unexpected cap ex expenses, and as zack mentioned we've done a 1031 on a couple properties that appreciated quite well to buy other rentals.  It's always good to have reserves for any rental you have, but I think going this route with a reputable company helps to mitigate the unexpected items.

@Pretty Khare

Yes, feel free to PM me.

@Dimitri Zavos

Yes it was an new build in FL.  I'm happy to answer any questions you have about those, but I would highly recommend those as a starting point for many reasons.

@Michael Loza

We did use a SDIRA to invest in a property using non-recourse financing which required 50% down & had a $70k loan min meaning we had to invest $70k to buy a $140k home as a minimum.  Because of this we actually cashed out my husbands 401(k) since he had less than $70k in it to use conventional financing with 20% down to get better leverage & buy more homes.  This was a good option for us based on our scenario & we didn't have to pay any fees due to the cares act with our situation.  

KCMO, Indy, Cape Coral FL are my votes!

@Chad Clemons check with a local bank or credit union as they typically have the highest LTVs on HELOCs from what I've found.  National banks usually don't come close.