All Forum Posts by: David Lambert

Quote from @Jaycee Greene:

Quote from @Paul Scammacca:

Morning all

I have managed to purchase 6 rentals over the last 5 years will 5 of those properties still holding notes. It seems we are up against DTI for our personal income as a measuring stick to purchase another property. We have equity in 4 of the 6 properties ( really 5 one Mobile Home on 2 acres paid for no one will lend ). The equity is low on each about 40-50K on each of the 3. My thought was to refi one of them and use those funds as a downpayment for a townhome (daughter going to university) and rent a room and my daughter live in the other. Problem is I dont think I can get funding now. Is there any way I can move here? Our income w2/1099 is low about 140k a year household so thats the measuring stick. From all properties we are averaging about $375 per door per month. Thoughts??

@Paul Scammacca quit claim them to an LLC and do a DSCR

Make sure you have a lender lined up and take their advice before doing this. Recent title changes on a property can pose some problems and an experienced loan officer will help you navigate this.

Have you considered NW IN? The market around Gary, IN has been improving. A lot of Chicago workers are moving to this area to escape IL taxes and politics. If you are a rookie and investing out of state, you are going to need an all star team. I know some solid professionals in this area if you need some referrals. 

If you were to replace carpet with the tenant still in there, what is the likelihood they will just ruin the carpet again? Seems less risky to wait until you are able to remove them.

Those numbers look great!

Are you using a PM company? I know that it eats into profits but it is something to consider for at least your first rental. You can learn by watching a professional manage the property. Then make the decision if being a hands on landlord is something you are realistically interested in. 

I'm not familiar with your market, but here are some thoughts:

750 Sq ft is small for a 3/1.

Interior looks like a flip but it seems like it has been owned by the sellers for a long time...so maybe not.

They have been trying to sell this property for 6 months and have reduced price. 

I dont hate this property. Small is easy to maintain as long as renovations were done correctly. Everything looks rent ready. 

House Canary is showing rent at 1100-1150. Did you run a DSCR calculation to determine cashflow? Seems like a property that isn't going to appreciate rapidly so cashflow will be vital to its investment potential.

Sharing the listing will make it easier for everyone to help you.

By reading many many posts identical to this though, I can tell you it is almost ALWAYS the dang price.

Also, depending on the market, a furnished LTR can often be more difficult to place a tenant in. Most people already have their own furnishings.

Good Luck!

I dont know of any lender doing second position HELOCs either. I would love to know if anyone is doing it because I could surely send people thier way. With rates where they are, I get a lot of calls from people wanting to pull equity out of thier property but not wanting to let go of the lower interest rate debt already on the property. 

Quote from @Matthew Graves:

Quote from @Dave Skow:

@Matthew Graves- thanks   ...very unlikely to find a lender that will do one " blanket " mortgage on multiple properties in different states ....also most lenders will likely not be interested in wrapping land in with sfr  properties ...if you locate some options - it will likely be  quite pricey  

 I'm finding that out after speaking to a few lenders. Thanks for the input!

Generally speaking going the portfolio route will not be more expensive. The entire purpose of this type of lending is too save money when compared to running single asset transactions for the properties. Origination costs and underwriting fees can be substantially less.

Regarding release provisions(atleast with the loans I see), there are no fees but you do need to pay additional funds towards the remaining principal. For example, you have a five property portfolio loan with 100k owed on each property. If you want to release a single property you payoff the 100k owed plus an additional 20k that is spread across the remaining properties. Now you have a 4 property portfolio loan with 95k owed on each property. 

Being in diffrent states can sometimes be an issue. The lender will need to be licensed in each state. For DSCR lending, NC and PA are pretty simple so most National lenders should be fine with these propertes. Total loan amount is also an immportant factor when qualifying a portfolio loan. Feel free to reach out directly if you have any questions.

Quote from @Andrew Nesbitt:

 So would my best course of action maybe to buy 4 or 5 $50k SFHs with owner financing and then get some kind of blanket loan to refinance later on down the road?

Typically in a portfolio loan each property needs to qualify individually. It is difficult to just group together several lower value properties to get around mimum property value requirements.

Properties in this price range usually have amazing cash flow and that makes them very attractive. However, securing practical long term financing is virtually impossible. This means that cash buyers are the only real market for them so they tend to not appreciate well.