All Forum Posts by: Carl Pickens

I have a list of every bank in GA and am working my way down the list, so far I have found one that only requires a seasoning period of 6 months. Does anyone know of one that doesn't have this requirement at all? 

 Thanks so much for taking the time to respond! I really like the idea of giving a free months rent at the end of the lease. 

Hello,

I currently have 3 properties under contract in Griffin Ga.

1) quadraplex at 60k, fully occupied at 390 per month 

2) single family at 18k, occupied paying 425

3) single family at 19.5k occupied paying 500

The properties are in decent shape, if anything maybe 3k in deferred maintenance on each single family, (probably needs new roof, but could also be put off for a couple years if needed)

I have owned another property in the same town renting at 850 for five years, so I do have some experience but I expect this deal to be much more management intensive, (different income bracket and therefore different tenants)

Financing: Getting a "bridge loan" using equity in the rental I currently own to provide the downpayment. 

75% LTV

6% interest

15 year term

3-year balloon 

good relationship with the bank (small community bank)

Expenses: 

1800 a year in taxes across all three properties 

I still need to get a quote but budgeting for around 2500-3k in insurance (conservative estimate)

principal and mortgage payment: 900 per month 

Bottom line: 2485 in gross rents, around 1300 in PITI, so 1185 net per month before maintenance and vacany (which I'm struggling to quantify)

Seeking any advice: 

I've talked to other investors in the area who have large numbers of these houses, and they say to count on spending around 2k per house whenever someone moves, but at the same time they have tenants who will stay for years at the time as long as rent is kept at or slightly below market (which all of the ones I have under contract are).

I have no illusions about what I'm getting into, I am intimately familiar with the demographic that rents these houses. I realize this will be more of a business that an investment and am prepared to devote the time needed to manage it correctly. 

Any advice about how to screen tenants? 

How to get the biggest bang for my buck on maintenance? 

How to incentivize tenants to simply not move out? 

What am I not thinking of?