All Forum Posts by: Collin Smith

Yes, the properties that I am looking at could certainly handle the shorter term loan. My goal for this property, though, is cash flow and I would prefer to spread out the loan for that reason. I am calling a couple of the smaller local banks today to see what their options are. Thank you, I may just be in the place of a shorter term commercial loan and I need to deal with it.

I am looking at a property that is listed at $99,000.  I hope to get it lower than that but I am running into an issue with banks financing a small mortgage like that.  The banks I have worked with in the past won't go below $75,000 on the principle in a conventional mortgage.  I can go with a commercial loan, but it is a 5 year balloon and I would rather not go that route with this one.  What banks deal with small mortgages?  I am in Florence, SC.

That does help. Thanks. It is a 6 efficiency apartment unit building. it will also be tied to an LLC. Thank you very much for clarifying that

What sort of budget are you working with? I am in Florence and have a couple SFHs and am working on my first multifamily. They are very limited here, mostly duplex and a couple tri. ($100,000-$150,000) From there you get into 100+ unit apartment complexes. ($1.5 million +) Try looking into Conway towards the beach, there seems to be more variety. The downside is you will be 45 minutes or so from Flo. Columbia has even more but a bit farther away. I looked at a triplex the other day that needs some work with one 1br, one 2br, and one 3br. All are currently rented. It had an annual ROI of about $9000 listed for 115,000.

I am looking at purchasing my first solo rental property with 20-25% down. My other properties with a business partner had a 15 year amortization on a 5 year term. I didn't think anything about it because the business plan had them paid off in 3 years anyway. Now that I am looking for a solo run, I am finding the 20 year amortization on a 5 year term is standard. (Or at least what is being offered on first look) Is it possible to get a longer term mortgage on rentals? It seems crazy that so many would be leveraging houses on 5 year mortgages so how are the homes being mortgaged safely? After the 5 years can they get a more traditional mortgage or is it 5 year after 5 year after 5 year mortgage? I searched the forums and it seems the 5 year is pretty standard, I just want to get an idea of what comes next.

I am a little easy if you in Florence. I went to school at USC and am wondering about finding property there for when my kids go to school (of course I assume they will go where their mother and father went and met).

Great insights. I really like multifamily homes. Obviously the bigger the better (mostly) but also a higher risk. Have any of y'all found that "perfect size" for stability and profits? I would prefer more than a duplex, I think, a quad would be great but beyond that it seems you get into more complete apartment complexes for million +.

I am looking at finding a multi family property to begin my personal portfolio.  I have a few houses with my brother in law that are geared for our kid's college in a few years.  He is not able to further invest right now, so I am looking at taking some of my savings to start building more towards my retirement and then kid's futures.  My main question comes in figuring out the best way to go.  I have enough $ that I could purchase a low income single family house with cash and have no mortgage.  This would likely bring in about $550 a month in rent (this includes deducting for a property manager that is used with the other homes), minus taxes and insurance.  The other option that I am considering is a mortgaged multi family property.  The down side is having a mortgage, but it would be able to generate about $1200/month in rent.  (lower rent, more units, "safer" if one is empty"...)  The mortgage would only be about $75,000 (or less) with the down payment I have available.  I would also look to set it up as a 15 year mortgage to get it paid off ASAP.  The other rentals I have 2 of the 3 paid off in full within 2.5 years.

For those of you that started out small like this, what would your suggestion be?  Or, do you go bigger with the mortgage and bigger with the # of units to make it more worth while in the long run?  If you go that route, does a lender look at what the property generates as income or just at what you can afford to pay?

Thanks!

I live in Florence and recently had some work done on my own home with John Sims and were extremely pleased with the quality of work.  Before that, I had Michael Plyler build an addition to my home, he is meticulous with his work!  If you want either of their #s, please message me for them.

I am looking to start investing in a small multifamily property, or a few single family homes in the Pee Dee area of South Carolina.  My brother in law and I have a business investing, as well, but this will be separate from that.  My thought with multifamily or multiple single family homes is that the rent from one unit will cover the mortgage when there are some vacancies.  Do y'all find it better to have one multifamily property or a couple single family properties?