All Forum Posts by: Cami Gerbmak

I'm still fairly new to the world of investment properties but I realize the key to finding good investment properties, is having an experienced investment realtor on your team.  Unfortunately the majority of realtors I've worked with that claim to have investment experience, have done little to nothing to help educate me and find properties.  I typically have been the one searching for properties off the listings and truthfully it's becoming a full time job while my realtors have done minimal to even search let alone show me properties when it works for them.  I work a full time job as it is and honestly I don't have time to do all the searching and researching.  Please tell me this isn't the norm?  I really would like to find a well-qualified agent that will help educate, guide me to find a good investment property.  

Hi Cory and welcome to BP!

One thing that's advantageous for a Chandler STR are all the tech companies in the area (Intel, NXP, Microchip etc) that hire people out of state along with being near to ASU for families visiting students. Just my 2cents since I'm new to investing myself. All the best to you!

Quote from @Doug McVinua:

@Cory Rickard Location is generally extremely important in the Short Term Rental world. You want to be near entertainment, restaurants, etc. that draw.

Chandler downtown has done very well the last ten years or so, attracting restaurants, a new theater, coffee shops, etc that would make that area attractive. I happen to have a condo/townhouse for sale in downtown Chandler that would make a great short-term rental. It's a short walk to downtown and all that is offered. The property has a nice two-car garage, three bedrooms, 2 1/2 baths, a community pool, and more. It's an easy lock and leave as the HOA maintains the exterior. It has a long-term tenant in it right now.

 Hi Doug,

I'm also looking in the chandler area...could you dm me the property?

Thanks so much!

Quote from @Travis Timmons:

Freaking out over an inspection report. I walked away from a property in Nashville in 2011 due to 5-10k in repairs, which I probably could have negotiated to get partially covered by the seller. We were under contract for $108k. That property sold last year for $460k. Hi, my name is Travis. I'm a moron. 

How I feel your pain Travis...at the time it's easy to zero in on the negative, lose perspective, and skew our decisions. You're so not alone! Hi, my name is Cami. I'm a moron too!

Quote from @Troy Williams:

anyone have info how to best find properties that allow for container homes to be built?  I understand you have to check with each local county or city zoning department, but was hoping someone might have experience or links to resources that can identify the zones classified to allow containers and/or areas they have built them on more quickly.  Checking with the departments one by one for each land listing that looks promising seems very inefficient.

Thx,

Troy

Hi Troy,
I can only speak from my current experience...I own a primary home on a 10,000 sqft lot in Chandler, AZ that does not have an hoa.  I've always wanted to have a freight container home to use as a long-term rental, airbnb or I would live in it and rent out my primary home. I went to my city's website and was able to find this under coding ordinances (see below.) Initially it sounded promising that criteria could be met until I read #6b - no ovens, ranges, or built in cooking facilities which didn't make sense.  I finally spoke to the city who reiterated the criteria along with needing to permanently affix the freight container home to a concrete slab. I asked why and was told for structural integrity (wth?) and I also asked if a microwave could be used and they said absolutely not.  Honestly I don't think they have any clue what a freight container home is.  Granted it sounds like I can have a freight container home on my property as long as I adhere to the city's criteria, but still would need to figure out the cooking part. 

I'm curious if anyone else has encountered challenging criteria and how to work around that?

I hope this was somewhat helpful Troy.

35-2202. Accessory buildings and guest quarters.

(1) Accessory buildings and guest quarters shall be located behind the front wall plane of the home and in the side yard or in the rear yard of the principal building and shall not occupy more than thirty (30) percent of the rear area.

(2) Accessory buildings shall meet the minimum side and rear yard setbacks for the district in which it is located. Any accessory buildings within a Planned Area Development (PAD) zoning designation shall be subject to the applicable provisions of the adopted preliminary development plan.

(3) Accessory buildings in single-family residential districts shall not exceed fifteen (15) feet in height.

(4) No carport or garage entered from an alley shall be located closer than ten (10) feet to a rear lot line.

(5) No accessory building shall be constructed prior to the construction of a principal building.

(6) Guest quarters are permitted subject to the following:

(a) Guest quarters shall utilize the same utility services provided to the principal building (i.e. separate utility meters directly serving the guest quarters shall not be permitted).

(b) No ovens, ranges, or built-in cooking facilities shall be permitted.

(7) A maximum of one accessory building or one guest quarters is permitted on a lot.

(8) The exterior design of an accessory building or guest quarters shall be commensurate with the exterior design of the principal building in materials, colors and architectural style.

(Ord. No. 1421, § V, 1-10-85; Ord. No. 1937, § 2, 3-10-88; Ord. No. 3063, § 3, 11-18-99; Ord. No. 4931, § 2(Exh.), 8-13-20)

Quote from @Kevin Woodard:

I wanted to reverse engineer this a bit, granted I don’t have tax or insurance numbers. But if you’re using income of the property to underwrite this deal, cash flow is the limiting factor. Otherwise, they are looking at the cash flow as the limiting factor and are mitigating risk. Shopping around wouldn’t hurt though to compare options. 

 Thank you Kevin for your insight and currently am exploring other lenders and options.

Quote from @Grant Schroeder:

@Cami Gerbmak 35% down required is definitely A bad investment! Academy Mortgage can go 10% down and no MI on 1-4 unit investment properties since we portfolio the loan on our own books.

 Many thanks for your reply Grant.  And I agree as the others have posted that 35% down is a bad investment especially if it leaves me with limited reserves.  Would appreciate more information about what you shared.  Thank you!

Quote from @Nathan Gesner:

Quote from @Cami Gerbmak:

Shop around. I pay 20 - 25% down.

Would that apply to me with a high DTI?  

Quote from @Sergey A. Petrov:

What type of loan? Straight investor mortgage? Second / vacation home loan? DSCR? The math and the logic on each is different. Higher downpayment to help with your DTI? Increase cash flow on the investment property because it doesn't with the 20% and your DTI is too high to subsidize that loss? Get to the bottom of this with your current lender and/or shop for a new one

Hi Sergey,

It's for a straight investor mortgage and per my lender I need a higher downpayment to help with my DTI and be able to get the rents the lender requires for approval. 35% down is just too much of a risk and leaves me short on cash reserves. In my mind, I need to supplement my income or find a higher paying job. I've talked with several other lenders and all have said the same - my DTI is just too high and requires a higher DP to qualify. The only debt I have is my primary home as I pay any credit card debt monthly. I'm not sure what else to do other than look for much lower priced properties that make sense as rentals or look out of state. I have an investor friend in the muscle shoals, Florence AL area that's still undervalued, but a lot of investors are discovering this place.

Quote from @Chris Seveney:

@Cami Gerbmak

Do they want 35% down to lower your monthly payment because of your income / DTI?

If that’s the case find a cheaper home

Thanks so much Chris for taking the time to reply!  Yes for lower monthly payment and being able to get the rents the lender requires for approval.  With more inventory, I am starting to search for lower priced properties and hopefully can find something or I may need to look out of state.