All Forum Posts by: Cameron Belknap

@Greg Pond  I've been researching the springs market for a couple of months now and have found that $850/mo (4plex) is reasonable given the unit is in decent shape.  Repair/cap-ex numbers are an educated guess ~12% of monthly rent.

@Robin Searle I have a list of neighborhoods that I am interested in.  From what I can tell, multi-family properties seemed to be grouped together. Mostly C properties.  I plan on managing myself so tenant screening will definitely be a priority.  Do you have experience with Springs MF?

Thanks for the responses guys! Overall numbers are tight but are definitely closer to working than in Denver. I will using an owner occupied loan so my CoC looks a little better than if I was going 20%.

Cameron

Hey Taylor,

I would love to get involved in a mastermind group!  It sounds like we are doing something very similar with housing hacking.  I have been renting out my first property just north of DTC since October of last year.  Been on the hunt for my second property for the last 3 months.

Please send me for information on the meet-up.

Cameron

Hey guys,

I am looking at multi-family properties in the Colorado Springs area and would like another set of eyes on my numbers. I have one SFH rental in the Denver area, but am interested in the springs due to the large amount of fourplexes available.

Purchase Price - $420k   Estimated rent $3400/mo

Rent Ready Costs - $5k

Closing costs - $6k

Taxes ~$1.4k

Insurance - $2.5k/mo

Utilities - $350/mo ~Landlord paid water/gas (please chime in if you think this is high)

Repairs -$100/mo

Cap-ex $300/mo (Guess, I understand it will be different from property to property)

How do those numbers look? My CoC looks decent, but I am not 100% confident in my inputs without having experience in the area. What are you overall thoughts on the Multi-family market in the springs?

Also recommendations for RE Agents who have a lot of experience with Multi-family appreciated!

Thanks!

Cameron

Hello,

Does anyone have a contractor they'd recommend for an Egress window installation?

I live in a townhome/condo community for which I've been told the contractor needs to have a special license to do egress window installations.

So far the only company I've found was Egress Inc and they came in around 7k for one window.

Contractor would need to be able to pull permits.

Thanks for the help!

Cameron 

@Todd Dexheimer When you say they look good on paper but in reality they do not make much money, is that a factor of not enough margin in your calculations, or unforeseen expenses?  I am person to really sweat the numbers and I want to have confidence in my calculations if I do find a deal that looks promising.

@Jaysen Medhurst, @Jason D. Great, thank you!

Cameron

Hi,

I have recently been searching for properties on Loopnet and I have been coming across 4 unit apartment buildings. Is there any difference between these and a regular fourplex?

I ask because I want to be able to qualify for a residential loan.

Thanks,

Cameron

I have also been looking into investing out of state.  I am currently in the Denver area and having a hard time finding deals.  I've been house hacking my current property, and am looking for my second.  The numbers work because I put 5% down, but I do not have the cash to be consistently putting 20% down in my area.  The numbers also do not nearly look as good. I want somewhere I can deploy my cash consistently with a mixture of cash flow + appreciation potential.

@Todd Dexheimer, @Mike D'Arrigo What kind of cash on cash numbers are you looking for when investing out of state? I have a hard time swallowing putting all this effort into getting a property out of state for it to be cash flowing $200-300/month, <15%CoC.

Thanks,

Cameron

Hey @Dan Mackin,

Thanks for replying. Here are some of my initial questions. 

1. I have spoken to a few lenders that have told me different things on how my rental income can be counted against my debt to income. Some say I have to wait 2 years before I can count rental income, but others have told me this is not the case. I have also read that I only can count 75% of this income against my DTI.

2. I am house hacking now, and my mortgage is being completely covered.    I filed my first schedule E taxes last year, so I have reported official rental income. I plan to continue to rent out per room, will the lender need to see all the individual lease agreements? 

3. How long can I keep doing this?  I understand that even if I have enough income some lenders are hesitant to give someone a loan after 4+ properties as the person becomes over leveraged, but I have not been able to find any specifics on this.  I have a steady, well paying, job and plan to purchase, and move into a owner occupied property every year for the foreseeable future.  Will lenders have a problem with this? Again, this is assuming that mortgages are going to be completely covered.

4. Is there a limit to owner occupied properties I can have? 

Basically a lot of what I have been hearing/researching almost points to this "black box" that underwriters use to determine if you are approved or not.  It would be great to know a little bit more about how they make the decision, and what numbers/formulas they use when determining to lend to a person or not.  Knowing what I can and cannot do from a financing side will obviously be critical when planning my next 5, 10 years in RE.

Cameron

Hello,

Does anyone have any recommendations for a local underwriter I could shoot some questions off too? I have been researching specific financing questions and trying to reach out to some lenders, but have been getting some conflicting information regarding my ability to take on future debt.  It would be great to talk to someone who actually does this for a living. 

I purchased my first owner occupied property about 6 months ago and I am currently house hacking it.  I am in the beginning stages of starting research into getting my second property.  I want to see what is actually possible, given my situation, so I can plan accordingly. 

Thanks for the help!

Cameron