All Forum Posts by: Eric Sebast

Thanks all, hadn't looked into a SBA 504 loan, I think that may be the way to go for us. Working with our local bank who we have the credit through to see how likely it is that we can put that together with them.

One of our companies is expanding faster than we thought, and we want to keep as much cash for production as possible.

Currently in (2) 20,000sqft buildings, and are going to need to expand into a 100,000sqft(ish) building in the next 6-12 months more than likely.

On the most recent building that we purchased my partner and I put down the 25% needed out of pocket. But we planned on having 5 years, and it looks like we only gonna get a little over one year before we outgrow it.

What outside of the box ideas are there for financing a $5ish million building with as little out of pocket as required?

PS: we are planning on keeping the 2 current buildings in addition to the purchase of the new one.

This is for an investment property that I'm looking to do zero to low money down on.

I understand with owner occupied properties are easier to get lower down payments, and the brrrr's that we are doing we are doing all on cash (currently) and then will do a cash out refi once they are complete. I'm looking for a way to buy 2-4 unit multi-families with minimal money out of pocket to keep rolling the snowball.

Are 80/20 loans a thing anymore? Or what options are out there for zero or very low cost down payment loans?

Currently have one duplex, and in the middle of one brrrr, have a HELOC but planning to use that to self fund more brrrr's and have cash but looking to put that into a STR in a vacation destination to offset some of my W2 next year.

Haven’t seen much discussion about low/no money down loans, so thinking they aren’t a thing, but there are at least a handful of properties that i know of right now that even with 100% funding would cash flow a couple hundred per unit after all reserves. 

We bought our first investment property this year that is a duplex, its about 25 minutes away from our home, and I also work full time. We decided we wanted to self manage for at least the first 6 months, and use Rent Redi. The software is just software, but it does make it very easy. Our tenants have been phenomenal, and outside of us getting used to each other for the first month or so, and getting them used to Rent Redi, I haven't heard hardly anything from them at all, and if we had hired a property manager I feel like it would have been a complete waste of money for this property.

We do still plan to hire a property manager once we get to 6 properties or so, unless it stays this easy...

Obviously your mileage may vary, but I would guess that it has a lot to do with the tenants that you have.

PS: take this with a grain of salt, very first experience that we have had and we are still very new.

 Already checked, deed is clear!

Appreciate everyones help, got my hands on the zoning laws, and under the allowed uses for "Commercial 1" it allows Bed and Breakfast establishments, as well as single family homes. Their definition is:

BED AND BREAKFAST: An establishment in a private dwelling that supplies temporary accommodations to overnight guest for a fee. Meals may or may not be provided. Tourist homes and inns are included here.

I'm gonna follow up with the enforcement officer anyway and verify, cause I'm gonna need to pull permits for the well we need to put in and the electrical/construction we need to do inside, but looks like we'll be in the clear no problem.

Hey All,

Finally just closed on a one room schoolhouse that we are going to rehab and turn into a STR (posted before about it, and its been a roller coaster to finally get to closing).

My question is, its currently zoned as commercial 1, and we can rezone it without to much problem we think, but we're not sure if we need to/should rezone it. We called and talked to the town, but we got bounced around to 3 different people, and none of them really had any clue and we got different answers from each of them (it is a very small town).

The last person we talked to essentially said "you're really going to be treating it as a business, so you don't need to change the zoning". Part of me wants to run with that and start the renovations (turning it into a 1bed/1bath period-ish luxury space) but don't want to find out they gave us bad information when we are well on our way in.

Anyone run into a similar situation?

 Only if you post negative feedback!

Hey all, we are just about to close on our first BRRRR property that is a 1900's one room school house. Its about 850sq ft, and besides two small (probably about 5'x5') rooms when you first walk in on both sides (where the front windows are) it is one big open space.

We were planning to wall off the back, and put the bathroom on one side, single bedroom on the other, and then leave the rest as an open space for the kitchen/eating/living space. But now I'm thinking we may want to do 2 bedrooms somehow to increase our pool of renters... Thoughts?

We are planning on doing the bathroom and kitchen higher end, as well as keeping everything as close to period as we can so it doesn't loose its charm. 

Link for the listing is: https://www.adirondack.net/rea...