All Forum Posts by: Carl Mcknight

@Chris Campeau

I’d pass on investing with them, and that is coming from a current investor with them.

Hello, if "6979-N-Weber-Ave" is the area you were looking to build, you might want to find a new realtor. That area is known as "Herndon Town" and is a D- area in north Fresno. The neighborhood directly to the east on Van Buren and Everest are full of generational families consisting of thieves and drug addicts. Even though you'd have a new building, you r tenant prospect pool would be very less than desirable (D- to F-), not to mention they'd have to accept their car and property being broken into on a weekly basis. Might want to look into Clovis, they are waiving impact fees ($$$$) on infill lots which could save you some $$, not to mention the better tenant pool. I know the Herndon Town area quite well. Thank you

Thank you John.

Hello Susan, thank you for your insightful response. I will touch bases with my Wells branch here in Central Calif. Thank you

Hello, I am an investor from California and am looking for a reference to a local banker who deals with out of state investors for SFR or Multi props in the Jackson Mississippi area. Some of the questions I would like to ask the banker: What are the LTV's your bank works with? Rate and terms on investment loans? Do you do commercial loans? If so, rates/terms? Combined loan totals for multiple SFR's? I pay cash for property, what's the seasoning period before I can do a cash out refi with your bank? If anyone has used a local bank in Jackson Mississippi that they recommend for investors, please let me know, I would greatly appreciate it. Thank you, Carl

Your property manager should give you an idea what comparable units are renting for. Regarding the sellers stated rent increases, it's been my experience C class tenants are usually hourly wage earners and some may be getting cash aid (food stamps, welfare, EBT cash, etc), to raise the rents $300+ in 9 months would be a major financial burden to their families. I would think the majority would bail and move, the ones that do stay may be struggling each month to pay rent and with struggle comes late rent and excuses. VERIFY rents and tenants income before closing.

I would shop around with more of the local banks where you are located. I've had great success where I'm located using credit unions that would go up to a 75% LTV as long as the property was seasoned for 6 months. A commercial lender may let you pull out more equity, but they are usually shorter term loans of 5-7 yrs. If going the commercial way, you might be able to refi into a long term loan in a few years. Good luck.

You mentioned it's in a "not so great neighborhood", that usually means a C +/- area. It takes a certain personality (usually a high threshold for crap) to prosper as a LL in those areas. High cash flow doesn't always mean easy cash flow, C class tenants can and will test your patience. Kinda of look at this way, in your day to day life your used to people telling you the truth when you talk with them, with C class tenants, get used to lying and excuses. If your not prepared to deal with the lies and excuses it may not be worth the purchase price.

Thank you for sharing this. I have a financial calculator that I use all the time, but haven't seen how to use it to figure returns on refi's until now. Thanks again for the information and example.

I wouldn't touch any property on a BRRR unless the end result is 100% of my invested cash back on the refi and a cash flow of $500 month minimum. Your time is worth something I would assume, and betting on appreciation is a gamble. Do the math, if no cash flow, I wouldn't do the deal.

Good luck