All Forum Posts by: Chris Allen

Hi there @Sophia Fugate, I am a travel nurse as well and have run into some issues with lending; but I maintain a PRN position at a hospital I have been at for the last 4 years. I recommend reaching out to multiple lenders and just ask if they are familiar with lending to travel nurses. But here is how I have handled these issues with lenders. 

- Type out a detailed letter/email with explanation of your position, how you are paid, how much you are paid, how long you have been nursing, and what your historical income has been. 

- Provide the lenders with your recruiters contact information and provide them the contracts you have completed/currently working. It helps to have your recruiter tell them about the job outlook and current demand (showing job security).

- Ask them to consider a pro-rated income, using the majority of the approval off your past income prior to travel nursing. 

Here are a few things to consider if you plan to continue travel nursing and want to invest. 

- Maybe retain a PRN position to show better stability. Every employer is different, but best case is do it somewhere you have a history so they might be more understanding of you being gone longer periods of time and being more flexible with requirements. 

- Make time between assignments shorter, so you don't have to explain gaps (PRN job helps so you can show when you are not traveling, you just go pick up shift at your other employer).

- If you can, try and take a few assignments with the same company. 

- Once you get a little more time under your belt traveling, it will become easier with lenders.

- You can also try different financing possibilities. If you are willing to do the 20% down, look at DSCR loans, or even look at partnering. Get creative

I haven't personally used any of these for wholesale, but I personally like Monteith Title and Abstract (they have a few offices). I have also used Netco in Harker Heights and Texas Title in Belton to close on a wholesale purchase. 

I live in the area and am always looking for properties if you have any I would love to connect. 

Hey there @Brian Lagman, I would agree with both @Justin Robert and @Pete Harper. I currently live in Killeen, and I work in Temple at the big hospital. A very over simplification is what Pete said, South of I-14 and East Killeen/Heights is fairly "safe". There are several pockets scattered throughout though. I live between I-14 and Zephyr Rd over by the Mall, which that is a decent area where duplexes down my street are being sold for around $225k. Likely the closer you get to Downtown or the base, the more rough the area will get. 

I am currently trying to move to the Temple area and I believe Temple/Belton will have a better chance at more appreciation d/t Meta being built, better school districts, and easy access to Waco and Austin on I-35. 

I currently have a new 4:2, 2,050sqft with a 3 car garage under contract for $389k in the last part of Phase I of a 3-4 phase community. This neighborhood butts up to a community that has new homes selling for $500k+ and is right down the street from a community selling $650k+ homes. Due to high property taxes, my monthly PITI is expected to be in the $2,600-$2,900/mo range.

We just had our first child and are a one income family. My income the last two years has been higher because of travel nursing during COVID, but now I'm really thinking about what I really want to spend per month on a home. Not including any rental income, my monthly take home if I were to quit travel nursing would be around $6k/mo. 

Should I back out of the deal and try and find a smaller home that meets our needs and brings our total monthly payment closer to $2k or less, or should I stick with this property in hopes that the value of the home will increase faster?

@Paul Sandhu I have seen several of your post, and I am sorry that you have had bad luck with renting to travel nurses. But I don't think that speaking bad of an entire tenant pool is in good taste, or advice for investors in a prime location to rent to this group. As a travel nurse, I know just how crappy some travel nurses can be, but that is for sure the exception and not the rule. I would say majority of travel nurses are hard working, well educated, well paid, and overall great people and tenants just looking for a clean, comfortable, and safe place to stay at a reasonable price.   

@Joanne Tsai I have not used furnished finder as a LL, so I can't help you there, but you should be able to find an attorney and see if they can draft you a good short term lease contract. As far as the background check and credit check goes, it is really up to you. I have personally only rented from AirBNB, and honestly if a LL asked for my background check, credit check, AND my assignment letter, I would probably just pass on that property. As a travel nurse, we have to do all kinds of background checks, drug tests, and other compliance items. While saying "dont worry about a background check or credit check" is probably bad advice when signing a 3mo lease, I would say it is at least reasonable to be more lenient on that if they can provide you a contact with the company they are working for to verify they are working for the dates requested. Do your due diligence, but don't go overboard. If the nurse gives you push back, they are likely accustom to renting from AirBNB, so just explain to them that you are not AirBNB, and some type of lease and pre-screening must take place in order stay at the property. 

@Account Closed I would work it as a cost into the rate, or at the very least pass the cost through to the tenant. If they are going to be there for a short period of time, its a hassle trying to set up utilities, and a lot of electric companies, at least where I am, charge a premium for energy plans that less than 12mo long. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $573,000
Cash invested: $65,000

Purchased a 2:2 with a loft cabin in Sevierville,TN. Purchased with a 10% down loan and rented out as an STR. 2021 Gross income was $97k where I was able to Net about $35k from March 2021- December 2021.

What made you interested in investing in this type of deal?

Always wanted to own a property in TN, and after hearing Avery Carl's podcast I decided to pull the trigger.

How did you find this deal and how did you negotiate it?

This property came back available on the MLS after going pending for $589k. When the property came back available, my agent was able to find out that there was one other offer for $589k, but the buyers had lots of contingencies. We came in with a $590k offer and waived inspection (had the inspection report from when it first went pending). While under contract, appraisal came in at $573k and since the sellers were doing a 1031, we were able to negotiate to purchase at appraised value.

How did you finance this deal?

10% down conventional

How did you add value to the deal?

A few new furnishings, good pictures, and a good AirBNB/VRBO listing.

What was the outcome?

Rented out on AirBNB/VRBO with a 2021 Gross Revenue of $97k.

Lessons learned? Challenges?

STR's can be time consuming if you don't have the right process in place.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,500
Cash invested: $20,000
Sale price: $143,000

Contributors:
Jeremy Fay

3:1 SFH in Harker Heights TX. Purchased 12/2019 for $45.5k from a wholesaler. After about $10k in rehab, rented property for $825/mo and was able to refi just enough to pay off my $50k private money loan. Sold two years later for $143k for a $77k Net Profit.

What made you interested in investing in this type of deal?

Found BP and after buying my first HH Duplex, I had the itch to do a "real" investment using the BRRRR method and private money.

How did you find this deal and how did you negotiate it?

Found through a wholesaler and after the wholesaler dropped the price twice, was able to offer him a fast close at $45.5k.

How did you finance this deal?

Private Money.

How did you add value to the deal?

Basic touch ups (flooring, paint, light fixtures, roof, and landscaping).

What was the outcome?

Cash flow of about $400/mo for two years and sold for a Net Profit of $77k.

Lessons learned? Challenges?

-Learn to run better comps (refi appraisal came in $30k under what I thought)
- Manage tenants better with at least yearly property inspections (tenants left the house in bad shape when they left)
- Even when you are not able to pull your money back out in a BRRRR, real estate still makes sense.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jeremy Fay at EXIT Realty in Copperas Cove TX.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $45,500
Cash invested: $20,000
Sale price: $143,000

Contributors:
Jeremy Fay

Purchase: Second property purchased, first BRRRR. Found through a wholesaler who was originally asking $65k, ended up agreeing to $45.5k. Purchased via private money loan of $50k from an investor I had met a few months prior at a Meetup. Property was a 2:1 with a garage conversion making it a 3:2.

Rehab: Property was in decent condition but was in a less desirable part of town. Replaced flooring, HVAC Duct work, Hot Water Heater, Light Fixtures, roof and a fresh coat of paint.

Disposition: Rented this property out for $825/mo, applied for a refinance and the appraisal came in very low (expected $100k, came in at $75.5k). Was able to Refi to pay off private money loan and remained rented to the same tenants at $825/mo for the last two years. Tenants moved out, property required new paint, flooring, and a deep clean. Listed property for $138k and closed at $143k. Was able to walk away with a $77k profit thanks to my awesome agent Jeremy!

What made you interested in investing in this type of deal?

Found BP and after buying my first HH Duplex, I had the itch to do a "real" investment using the BRRRR method and private money.

How did you find this deal and how did you negotiate it?

Found through a wholesaler and after the wholesaler dropped the price twice, was able to offer him a fast close at $45.5k.

How did you finance this deal?

Private Money.

How did you add value to the deal?

Basic touch ups (flooring, paint, light fixtures, roof, and landscaping).

What was the outcome?

Cash flow of about $400/mo for two years and sold for a Net Profit of $77k.

Lessons learned? Challenges?

-Learn to run better comps (refi appraisal came in $30k under what I thought)
- Manage tenants better with at least yearly property inspections (tenants left the house in bad shape when they left)
- Even when you are not able to pull your money back out in a BRRRR, real estate still makes sense.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Jeremy Fay at EXIT Realty in Copperas Cove TX.