All Forum Posts by: Gabe G.

@Louise A.

Thank you. What kind of rates are you seeing?

Thank you for your input

@Greg Bieberich

Thank Greg. I talked with Dee and she is restricted to the 10 limit as well.

@Louise A.    Do you know if they have the 10 limit as well or can go beyond that? Is that true 20 and 25 AM, or is their a balloon?

Thank you for the help guys.

Louise, is that true 20/25 year AM, or is their a balloon?

Are the fees comparable to conventional financing?

Thank you

I have maxed out my 10 conventional. I am taking a small break on buying. But am interested in seeing if anybody has any good local banks/credit unions to contact in the Indianapolis area that do portfolio/commercial lending? I have heard Crane Federal, is one to check out. Any ideas on others and expected terms/amortization ?

Thank you

If you have real hardwoods, you refinish and use those. Solid hardwoods will last you 50-100 years, if taken care of and refinished occasionally.

If you have tile or a slab, or something else underneath, then I've been going with laminate

But if you got the hardwood use that.

I don't know what the lifespan on laminate is, but it's not 50-100 years.

Just a rule of thumb. Works on some lower class properties and it's a good goal.

However, 20 years ago, it was the 1 percent rule. You would do good over the long term, if you got rents= 1 percent of purchase price.   Do to many factors, the main one being the real estate collapse in 2008, now its the 2 percent rule. I bet if you looked back, before the real estate collapse you would be hard pressed to find mention of the 2 percent rule.

At the end of the day it's about cash flow and profit. I put more validity in the 50 percent rule, than the 2 percent. With that said they are just rules of thumb. If you can buy a property and take care of all expenses and capex, and come out ahead 150-350 a month after rented. It's probably a property worth buying(outside of warzones).

I purchased and fixed up #10 rental

3 bedroom 1.5 bath 1100 sq ft

Greenwood schools.

Purchase price $58250

rehab 7k

I paid more than I would like on this one. But greenwood is a good area and close to my primary. I put in a new HVAC,new paint, new laminate flooring, new water heater, fixed some water leaks, and other miscellaneous items

Mortgage

30 yr fixed at 4.5 

25 percent down 

Income

$915 a month(expected)

NOI using 50 percent rule= $457.50

Principal and interest=$221.36

Cash flow=$236.14

Any opinions?

This is my last one for a little bit. Taking a break, to pay down some debt and this maxes out my 10 conventional allowed.

Not much. Used home equity on primary residence to buy 1st one. Then got a heloc on that one, and bought second one, then got a heloc on that one and bought 3rd. Then from there I bought 4-10 on cash flow from the first 3 and W2 income.

You expect pain and torment, but hopefully at the end of each year your net worth grows. 

Be diligent with pay or quit notices or whatever it is in your state that you have to post on the door.

Do that immediately when a tenant is late. While sometimes things happen in tenants life that causes rent to be late, you need to get things moving. Because more than likely, the tenant is just "buying time" with lies. Your mortgage company does not take lies as payment and neither should you.