All Forum Posts by: David Chappell

Hi Amir, when studying different neighborhoods in my market I like to use quantmaps. I paid for the subscription for a few months and drew my own custom Google maps areas and color coded them red/yellow/green based on a "grade" I felt came from a few metrics like crime/average household income/etc

I also really like realtors dot com new maps, if you search for an address and click on the map and then go to the top left and choose the Value slider it will give you a nice color coded map of which areas of a neighborhood are higher valued. I do all of this remotely, so I use the above process to filter out 90% of the properties and then send the other 10% to my local team for verification.

Hi, I am under contract on another property. I am either going to flip it or keep it as a rental. I am getting a hard money loan for the property under my LLC, but if I keep it I would like to refinance out of the HML into a 30 yr conventional load under my name.

Can anyone give me a quick rundown how that would work? Would it just be a normal refinance process or are there further steps that need to be taken to get the property under my name before the refi is complete?

Thanks!

There are decent areas of Bessemer, but its mostly non owner occupied properties. If you can find a good enough deal to do some cosmetic upgrades you might be able to make decent money selling to a first time home buyer, or maybe turnkey rental investor. I would stay away from the areas in red.

I dont have any experience with MFH (yet!), but anything under 5 units can be financed conventionally through Fannie/Freddie. Anything more than that can be done "commercially" either through a local bank/credit union or a DSCR type of loan. If it's under one parcel then it should be treated as one 10 unit, which I believe should be able to be financed pretty easily?

Why did your bank say its not eligible for financing?

Hi Joy, I invest in SFH in Birmingham, AL, happy to try to answer any questions you have about the market. MFH in Bham is tough, with the majority of the properties being in C/D areas of town. You can buy cashflowing deals but they are tough to find and usually get bought up by the locals.

Green Acres is a solid area, congrats!

Dont let the long distance scare you away, as long as you have a great team in place (realtor, PM, contractor, etc) then they will be able to take care of 99% of the issues that may come up. I chose a market almost 1,000 miles away to invest in and I havent looked back since. I also have a similar strategy to you, live in a high cost of living area and using a HELOC on primary to build a portfolio. I dont know much about Indy but a good PM will keep you from buying in bad areas and if you find a good deal you should be able to get 100% of your cash back to rinse and repeat within 6 months.

Security National may be able to help you with this. If you wire the rehab money to escrow at the same time as you purchase the property and it's all on the HUD..then they will consider that "Delayed financing" and you wont have to wait the 6 months to get a loan based on ARV instead of purchase price.