All Forum Posts by: Chris A

Hi! I'm Chris and I've got the bug too. Yes I am a real estate investor but it's been primarily by accident. Each time we bought a new house we just kept the old one and rented it. In a college town it's pretty easy. In the last 1.5 years we have stepped up bought 2 multi-unit buildings. The first a 4 unit needing a lot of love and then a 12 unit that we have a management company taking care of.

My goals now are learning now to finance additional properties seeing that I am completely leveraged 80% LTV on all properties. I plan to stick to the towns I know and understand but would like to continue to expand. Any advice on additionally leveraging the properties we have beyond 80% LTV would be appreciated.

Chris

I've not heard of this as a standard practice. Look around for a more aggressive lender.

BACKGROUND:
I currently own 3 rental properties of which 1 is larger apartment building
Approx $500k net worth
Each property is approx 80 loan to value
Excellent credit score (750)
Very little cash available
Am very comfortable with the rental business and real estate in general

QUESTION:
Do I have the firepower to purchase an additional apartment building? What creative solutions are reasonable?

The property in question would cost approx $750k since it’s been on the market for a while and has a desperate buyer. Cap rate is around 8.5 so it’s a solid but not amazing deal. Is it possible for a person to commercially finance 80% and then do a short-term (10yrs) seller-financed down payment? What other options are there to finance the last $150K (down payment) without destroying the cash-flow?

Thank you!!!!