All Forum Posts by: Bryan Springhetti

Congrats Joe! Looks great! 

@Sean Williams I appreciate the heads up! Thanks!

Hey Y'all!

I was just checking in with eveyone around the Louisville metro area (or anywhere for that matter) as to what they are seeing with current lending practices as it pertains to commercial + secondary mortgages.  

My business partner and I have done the BRRRR (enough Rs? I never remember) strategy successfully for the last few years but running into some roadblocks currently with financing. Just last year we were able to put down 15% for a commercial loan with a 10 year ARM but that has completely dried up. Five different banks in the area said they were all looking for 20-25% minimum. In addition, we haven't gotten great feedback from banks (even ones we have a realtionship with) about the length of time/seasoning they require to refinance. In the past, 6 months was no problem but doesn't seem to be the case currently.

We had the opportunity to snag a pretty good investment property but were scared off by the financial climate/bank lening uncertainty and in retrospect, have some regrets.  Regardless, I wanted to see what much smarter people than myself have been seeing/hearing from their lending partners.

Appreciate the responses and stay safe!

Hey @Joshua Shuck !

Thanks for the quick response.  We actually just had a family friend reach out who was recently laid off that we are going to utilize to help them out during this time.  

I will put you in my contacts list and reach out the next time we have a place come up which should be in the next few months.  Thanks again and stay safe!

Hey Everyone!

I have a unit that is *almost* done being rehabbed and am looking for a good cleaning crew here in Louisville.  We had an invidiual in the past but weren't quite happy with their performance/price.  Does anyone have any good recs for cleaning crews getting a unit to rent-ready cleanliness?  Any input would be great!  

Thanks in advance and stay safe!

Hey @Natalya Whitaker!  

As far as my investment, I am not 100% percent sure either, haha! I think the main reason was  my wife and I have been looking for a bit and it checked most of our criteria besides the price.  I had already drawn up designs for the property and just got a bit too invested thinking it was locked up.  The owner really made it seem like they had to sell extremely quickly but they never gave up on their sale price of 150k.  

Ultimately, I wasn't quite confident in the ARV after the updates and would have to hold the property for quite some time. The owner wasn't really there to negotiate even though they said the opposite multiple times. They ended up not giving an inch even though their assessment of the property was pretty flawed I didn't want to be locked up for that long, even though we had planned to hold as a rental when we moved into a SFR or bigger house hack duplex/tri. We did think about short term rentals as an option but sale price just wasn't going to change sadly :(

Hey @Raphael Collazo!  Appreciate the feedback!

My rental numbers caem from a property management company, my agent, and rentometer.  I put in the exact address for rentometer and it showed a median of 1065 with average being 1100 and 75th percentile at 1325.  My realtor who also owns property in the zipcode has a very basic 2-1 (rental finish) that constantly rents for 1200 so I feel confident in that assessment. However, it never hurts for a second opinion!  The same went for the first unit.  I was also planning on finishing those units quite nicely.  Not top tier retail level finish but very mich high end rental.  Overall, the price just wasn't right and I backed out of the deal today.  Maybe they will call when it won't sell in a few months time and I can get a better price but just going to wait for a better deal!  Appreciate the help!

Hey @Glen Nash! Appreciate the feedback.  Do you know which propety I am discussing?  PM if so.  I thought I had more wiggle room with it being a house hack to let it appreciate over 5-7 years.  This would be our personal home as stated, not purely just an investment property but does feel a bit tight.  And agree, not a chance this sells for 150k as is. Something seems a bit off with owner having such unreasonable demands. I just can't quite put my finger on it.  Negotiations have been amicable but the story/terms+conditions demanded don't match up.

Hey Everyone!

I wanted to reach out and see if a current contract I have on an off-market deal makes any sense.  The details are as follows:

Property is a 1500 sq foot duplex here in Louisville (40217 zip code) that needs pretty serious renovation (finish hardwood floors, new kitchens, bathrooms, new paint, windows)  Mechanicals are good and do not need replacing.  It had been rented previoulsy by two very long term tenants that both recently moved out.  Front unit is 575 sq foot studio we planned on turning into a true 1br.  I am very confident on 800/month as worst case and top end being 900 to 950.   

The back unit is 925 sq ft 2 br 1 bath.  It needs similar renovation to the front.  My wife and I would be living in this unit and house hacking.  The back unit would bare minimum rent for 1000 and top out around 1200-1250.

The main rub on this deal is owner will not sell for less than 150k in its current state and only through owner financing.  We cannot really do traditional financing in my opinoin because the property will not appraise in current condition at 150k (red flag).  The terms are 4.5% amoritized over 30 years with a 5 year balloon.  In addition, he wants payments each month totally 1k (extra money goes towards principal).  We have a tenative agreement that I can refinance after one year with a bank note paying off the remaining seller financing note if desired.

The area overall is appreciating well and will continue to for the forseeable future.  I am still getting a quote on the rehab costs but looking at 25-40k at the max depending on finish and extent of the work.

I am leaning towards no due to pretty unfavorable conditions but the owner has bad information from current contractor on rehab costs and ARV. Let me know what ya'll think! Appreciate the input.

Hey @Jonathan Farber! What I meant was, for example, if tennant had voucher for 3 br but you had a 4br property available, section 8 would only pay up to the voucher's allowance, which in this case is up to 3br.  The meeting with the seciton 8 prospective tennant for lunch never materialized so I did not get much more info from the tennant point of view.  We did contact a few more owners well versed in section 8 in our area and they all echoed the concerns everyone has had on this forum here.  In my opinoin, it seems to definitely be a niche market and not something my business partner and I are planning on pursuing.  However, there is a high demand for seciton 8 properties in the city from my research so if you want it to be part of your core strategy, then you could potentially be very successful.