All Forum Posts by: Cory King

I'm not an loan officer, but I know some banks locally like ORNL Credit Union have offered a 0% down conventional loan product. Typically people think FHA because it's what's thought of as the least amount down which is commonly the goal when we all get started. I remember for my first house that was my goal and I house hacked that home for a few years. There's a few mortgage brokers in the area I'm happy to connect you with do dive deeper into your options.

Hey @Zachary Kotiadis congrats on getting started on your investing journey. I believe there may be special exemptions around a job relocation or other extenuating circumstances. I'm curious as to what's important specifically about the FHA loan? There are other loan products available that are still a low down payment.

Out of curiosity, have you talked with your lender about this? I've often found that just going right to the expert in the space is going to be the most direct source of info. Forums are great and all, but verify with the bank. Unless you're using all cash we've all gotta talk to the bank. If you need some referrals I'm happy to connect you to some loan officers who are also investors here in Knoxville. 

Most everyone I've talked to is down to some extent. 1-10% this year. The right property with right management (self-management or otherwise) will do fine overall. It's just not the same as it was a few years ago when money was free and abundant. There's certainly been an uptick in available properties over the last few years as some owners have grown tired, new construction is booming in new lots and ones that were lost in fires, & investors who bought in 2020-2022 who may've overpaid and weren't properly set up are struggling. The dated cabins typically need more help than say brand new construction which now are coming with pools and other amenities built in. 

@Candy Kimbro Congrats on your STR property, nice cash flow for sure. Some banks may lend as a HELOC on the rental property, or refinance it. Would have to have all owners on board for this. 

I've definitely seen parents purchase properties close to campus to house their kids while they're at school, it's a solid move. My wife and I have a few homes near campus we use as student rentals and they certainly perform well. Averaging $1k/mo per bedroom which is now on the cheaper side of things.

I'd consider doing some kind of cash out refi on the property at a number you're both comfortable pulling out, while still leaving $ for reserves to maintain the STR you currently have. It'll restrict that cash flow, but unlock a nice option for the family. Especially if the other kids follow suit, they'll likely need some kind of housing for a significant period of time nearby so buying now wouldn't be the worst move.

Just my 2 cents. Happy to help however I can

there's people out there who will fund downpayments for equity in the deal or a preferred return. hit up local meetups and facebook groups and have some conversations

@Alex Longinidis congrats that's super exciting! I have a friend who runs a meetup over in Springfield, OH which is about 30 min away. Happy to connect y'all. 

@Devon Shives What's the plan to help the mrs improve her credit score? That seems to be a straightforward solution. Talk with your lender. If you can have a lease lined up for your unit they shouldn't count your current mortgage against you and could use that "potential" income as income on your DTI.

@Monica Gonzalez a paid memership to BP will unlock their tools/calculators. Call agents/property managers in the area you're looking to invest in for real time stats like rent and pricing info. 

You should be weighing out your tolerance for risk. Local market economic conditions. How much $ do you want to spend? Do you want to buy fixer uppers or more stable assets? What's your end goal for your investing journey?

What @Tim Ryan said. A mentor. Connect on here and go to local investor meetups. 

@Chizitem Ibeneme Call local property managers in the areas you're considering for the most accurate info on rental rates. Don't overcomplicate it. Everyone loves to say use this app or website, just call the experts directly. It'll be the most accurate talking to boots on the ground and not an algorithm. 

For cap ex, same thing. Talk to management and agent/investors in the market to help. It'll be property specific depending on the condition but I'd say anywhere around 5% is going to be a number to start with. 5% cap ex. 8-10% for management. 5% for vacancy. Adjust depending on state of home and local market conditions. 

Hope that helps. 

@Justin Pumpr I'm not sure I'd double down on the debt and tap further into a HELOC. Risking your house on these kind of moves can become a literal house of cards as you scale. I'd maybe look into other markets or consider more stabilized assets considering you're investing out of state. These $250/mo cash flow homes won't get you there. Aim for $500/mo min and even that won't allow you to tap into unless that's after cap ex, management, vacancy is factored in. I don't know much about Ohio market, but I see everyone flocking there for section 8 income and that sounds wild to me as real wealth is build on long term appreciation of stable assets in solid areas.

Don't fear the stability of a W2. The benefits that come with them can be attractive for sure. Self employed is a costly endeavor. A mentor of mine once said to what you aim for in annual income should be 10% of your portfolio size. Example $300k/yr is $3M in assets. Buy up then pay them off as fast as possible. 

My 2 cents.