All Forum Posts by: Denny Le

Hi BiggerPockets! 

My parents are interested in getting 2 manufactured homes for investment purposes, and they are hoping to get a loan for both of them combined. We are guessing that the total cost would be at most $150,000.00 (including 2 manufactured homes, sewer connection, and setting up a foundation).  

Do you know if there are any loans for something like this?  They will be able to put at least a 20% down payment, and they already have a few manufactured homes on the property that are cash flowing.  They are also hoping to get as long of a loan term as possible, with as low of interest as possible (just like all of us!).

Thank you for any help!

Denny

Hi Claudia, Congratulations on your first renovation deal! I am starting out also and I am also looking for a renovation deal. I did receive some good advice as to what you should start on. Windows should be the first (or everything on the outside). The reason behind this is so all of the neighbors can see that you're working on your outside and people will start buying things and improving their own properties. This will increase the value of the neighborhood, which in turn increases the value of your renovation project. If you can start ordering those as soon as possible, so you can install them (usually takes 2 weeks to order custom made windows). Good luck! I'm interested in hearing more about your project, Denny

Tod Novak this is a primary resident

Hi BP! I'm really interested in getting a refinance for 95% LTV, but I can't seem to find any lending companies that offer that. Can you refer me to someone who could refinance for that amount in the state of Washington? Thank you! Denny

Hi BP!

I have a relatively large backyard and I have asked engineers if I have the ability to build a building in the backyard.  The engineers said that we will need access to our neighbor's sewer easement. My questions are:

How do i ask our neighbor if they will grant easement to their sewer?

What steps do I need to take?

Thank you for any help BP!

-Denny Le

Hi @Wayne Brooks,

I forgot to say that I have talked to the city and they have said that it is possible to subdivide the land. I just don't think I would be able to start the application from the city unless I get the easement because starting the application costs money, while the easement could potentially not cost anything.

Thanks for your reply!

Do you know how I could ask the neighbor for the sewer easement? 

-Denny

Hi BP!

I have a relatively large backyard and I have asked engineers if I have the ability to build a building in the backyard.  I will also have to ask the city of our county for permission after.  The engineers said that we will need access to our neighbor's sewer easement.  My questions are:

How do i ask our neighbor if they will grant easement to their sewer? 

What steps do I need to take?

Thank you for any help BP!

-Denny Le

I definitely agree with Ben, the whole goal of an investor is for the cash flow, that is unless you are trying to buy and flip a property, but that's a completely different subject.

If you want to have high cash flow, you should get a 30 year loan, if we could get more than 30 years, then I would definitely do the highest amount of years possible.  I would do that to have a lower monthly payment, which equals higher cash flow.

I'm also in the same boat as you, searching for a 2-plex to a 4-plex, I haven't been able to find anything good cash flowing properties, but it seems like the 4-plexes in my area (Vancouver, WA) are cash flowing slightly better than the 2-plexes.   There are rules for some states on whether you can purchase 4-plexes with less than 25% down, so make sure you look that up if that's something you're interested in.

I hope to hear your updates on purchasing! I also hope I'll be able to find a 2-plex to 4-plex soon that has decent cash flow.

Good luck @Joseph T. !

Hi BP!

I just recently sent in an offer for a 4-plex.  Here's the numbers and situation:

Purchase Price: $283,000.00

Down Payment: 3.5%, so FHA loan

Cash Flow will not be at a positive since I am paying such a low down payment, it will be around -$500.00 to -$700.00.  This number includes all operating expenses, vacancy and I will be living in one of the units, so that's why it's low.

Any advice on whether I should purchase this property or not?

Thanks for any help and responses!

Denny

@Albert Bui Yes, that one we talked about FHA loan, but now I'm not interested in the FHA loan since it raises my monthly payments too high. I'm interested in a 5% conventional loan if there is any