All Forum Posts by: Carini Rochester

"No lender is going to do that."

I do it.

My business rents office space in a building my LLC owns. My commercial lender was fine with it. This isn't residential. I don't rent 100% of the building, 25%. My business has been in business for 30 years with excellent financials. Maybe they usually don't do it, but they did it for me.

To avoid having a foreclosure on their credit report.

Mixed use property, multi-family, commercial property, funded by a commercial loan. Lender looks at the cash flow of the property. 

Seller financing.

https://www.warreninspect.com/

Warren Engineering is one of the largest inspection companies in town.

I've also heard of 
Comfort Living Home Inspections, Kevin White. p. 585-802-6386

I know someone with expertise in structural inspections and design if you ever need that specialty.

@jaycinta henry I didn't realize he was looking for a car loan. A car loan is good vehicle for getting 15K. The closing costs for a mortgage or a HELOC is about $5000 in my experience, zero for a car loan. If he's got 15K equity in real estate, the lender will subtract out the closing costs of, say $5000 at he'll get $10,000 at closing. Obviously still have to pay back all $15,000. To me, that is very expensive money. There's probably a cheaper way to get money. The part time job idea doesn't have to be taken as the only idea, I wrote that to make the point that you should be thinking of other options.

I was glad to read @kerry baird post that there are some institutions that offer the smaller loans. I like learning. 

Jay, best of luck on your investing!

I agree that those are the neighborhoods in the city limits to be looking in. Do you definitely want to be in the city limits? There could be some opportunities in Irondequoit, Greece, Henrietta.

Branden, you are not as unique as you think. Many have started with help from a family member. Many have started with nothing or next to nothing. Many have started in California. You may be reading the posts or listening to podcasts looking for exactly your circumstances instead of looking for generalities that you can apply to your circumstances.

Write a description of the type of properties you want to look at. # of bedrooms. Sq. ft. Price. 

Interview a few realtors. Select a realtor. Show the realtor your property description. The realtor will start sending you automatic emails when properties matching your criteria hit the MLS.

Walk into a bank and talk to their mortgage officer. Describe your situation. Find out what changes you can make (as you outlined in your question and possibly other things you haven't thought of) to put yourself in a better position. The loan officer will be more helpful and better able to give you more definite and correct answers for your exact situation. If you don't like the bank's answers, go to another bank, maybe a third.

Many BRRRRable houses are not on the MLS, many are too distressed to qualify for conventional financing. Do you know what 'driving for dollars' is?

Contact some hard money lenders in your area.

Attend investor meetups. meet people.

Read Bigger Pockets BRRRR book.

You've explained several reasons why you don't like all electric houses. No A.C. which leads to high turnover. Why do you keep buying them? Is it cheaper to buy a house with forced hot air furnace and air conditioning than it is to buy an all electric house and then convert it? If that's the cheaper route, then opt for that. In doing your financial analysis, include the higher vacancy rate for the all electric house and the additional costs for screening new tenants etc.

If I used the 1% rule I'd be bankrupt. I own 3 properties in very high property tax areas. A couple old buildings with high maintenance and repair costs. My properties run between 1.333 and 2.333. We need it around here to pay the property taxes.

I appreciate your story. I had a similar experience a few months ago with a simple 3 bedroom house. Many qualified and somewhat desperate applicants, only one house to rent. "I feel really bad. . . . It's really heartbreaking." I understand those emotions. I had them too. Wish you the best.

Have a great 2022.