All Forum Posts by: Franklin Romine

I only own one condo and it looks like this....

Purchase price 27k
Previous forclosed amount 100k

Monthly....
Rent 675
Hoa 180
Taxes 35
Insurance 15

Net cashflow 445

... oh yeah no pre payment penalties, the product I'm using is 30/15 (30 year amortization due in 15 years, balloon payment). I pay extra principle each month to get my balance to zero.

I'm not a fan on the ARM but sounds like a good bank to work with. If your buying the properties at a good discount it would make me more comfortable.

This is what I have going with my local banks....

Portfolio loan, 7.25% 30/15, If owned the property less than one year 70% loan to cost (purchase price plus repairs), if owned longer than one year 70% loan to appraisal.

Bank requires a 6 month reserve for all properties owned, we pay appraisal and about $500 in fees. Appraisal is required no matter what and the minimum loan amount is 35K. NO limit on the number of loans.

Most unique advantage is the line not being tied to your credit score. It gets me excited know you have created a business/entity that a bank will loan "unsecured" debt on. The way I got started was establish a checking account in the LLC, deposit more cash than you withdraw, request portfolio loans, treat the organization with respect and keep to your word and then request the business line.

If your new to a bank don't get to pushy, banks don't want to lend to desperate people. New borrowers are like a new girlfriend, you take your time because you don't know if it will work out.....

I would leave it. Do you have another source for heating?

That is a old property. Is it vacant? I own a property built in 1922 and is in very good shape. The age doesn't scare but the poor maintenance over the years does...

Jak,

I know the Fresno and Visalia market well. I'm purchasing single family homes in 30-60K range. Previous property values range from 100-230K and rent conservatively for $800. I would be willing to share some of my market information if that helps. I haven't purchase or operated a multifamily project but would like to. I have several 30yr and 15yr mortgages. I'm developing a good relationship with Tri Counties Bank out of Chico, they are one of the only lenders that offer portfolio loans. Also, Bank of the Sierra offers equity lines on investment properties.

Frank

How does everyone else handle the key situation? Re-keying every time someone moves out is getting expensive.... any suggestions?

Chris,

Nice find on the 4 plex. I too am investing in the Fresno community. Managing property is easy, once you get a good system in place you won't ever need a property manager. You said the property is owner occupied? What side of town is it on and did you tell your tenants you owned the property?

Scott,

I see your license is only for TX. Do you have any referrals for portfolio lending in CA, Central California.

Thanks,

Frank