All Forum Posts by: Adam S.

@Samira Schadt

Given that you don’t have the 3.5% down payment, waiting may be more prudent; however, do you have other options for getting the down payment?

Here’s my thoughts. If you could borrow the DP and money for rehab from family/friends, buy a fixer upper MF property, do the rehab, and then refinance and pay back the DP and rehab costs with interest. In the right scenario, you may get some money back from the rehab while saving money from the difference between the mortgage payment and rent. Not sure if this could work for you.

@Sean Beyrouthy

If you stay with the LLC, then yes, commercial loans will be a funding source. The higher rates and balloon payments can be scary, but look at your situation. Do you want to sell the property in 5 years? Maybe you can make extra payments as if it's a 15 year loan. I'm using a local lender that has a fixed rate product for 10 years on a 25 year amortization. I don't need the CF now; however, I plan to grow for the next 5 years and then transition to aggressively paying down debt similar to the debt snowball Coach Carson talks about. By 10 years, I should have an adequate global DSCR to refi all properties into a low leverage scenario. Start with the end in mind and work backwards.

@JR Green

This is I love these forums! So much great advice. Having boots on the ground is a major step in the right direction. You need someone to tell you about the area to find the right properties for your situation.

I also agree that having a high CF with lower cost properties may mean higher turnover, which eats up the CF. Pick one strategy for now, build your team (you may just need a stellar agent), and find a property in your criteria. Wealth through RE isn’t fast, but can long lasting if done right!

Good luck!

@Rob Bergeron

That’s good. Hopefully, your CUPs go well. If you run into bumps, would you mind sharing? Thanks!

@Sean Williams

Thanks! Yes, it won’t be my PR. I have verified the property is eligible. Have there been any bumps along the way that I should consider?

Hi there! I'm new to the STR game. I've identified a property that would need a CUP to do a STR. Has anyone been through the process? How was your experience? Any tips or tricks would be appreciated. Thanks.

Anyone in the Louisville, KY market - have you gone through the CUP process? How was your experience?

@Todd Rasmussen

I agree. I’m going through this right now. My PM is to give notice soon. I need to rehab the property and refi out of my HM loan. I’m not desperate for the rent, but the tenants found out that they were paying way below market rent for the area and are delaying. Unfortunately, no one wants to pay more. If you have a strategy, you have to stick with it (and all its worts).

@Christian Hollinger

Not sure about the market. I have a few local credit unions that will go to 85% LTV depending on borrower strength. I heard David Greene say recently that being that person who calls all the banks and credit unions in the area and getting their terms will help you and other potentially. Good luck cashing out!

@Tony R Fox

Treat your family and friends just like any investor. Whatever you might show to an investor or the bank, show the family and friends. They already know you so treating them as professionals only will help you.