All Forum Posts by: James Bartlett

My main question is if I give the owner a down payment does the bank require an additional down payment when I go to refinance with them? This is a four unit building at 470K. I’m planning to give the owner 75K down payment. He will finance for two years. 

Also, wondering.

I’ve given the owner over 100k in rent over the past three years. (My main source of income is rental arbitrage). I have a successful and predictable track record of managing this building as the proxy owner. The tenants directly pay me then I pay the owner. Will this look favorable to a bank? As in, maybe they would require less as a down payment if the owner ends up not financing it. 

Context: there’s a 4 unit building I want to buy. I’ve been managing it for about 3 years. In a nutshell I sublet properties for other landlords for a living. I own property too but this style of management is how I pay bills. I’ve paid over 100k in rent on the building over the 3 years. I mentioned that only to highlight a reliable track record of payment toward the building.

Problem: I'm trying to avoid another 25% down. I just spent most of my money on a traditional sfr purchase. I own my personal home so not sure how a house hack could even be possible. If a bank wanted 25% down it would be about 125K. I can afford to give the owner about 50K. I have talked to a couple lenders about a HELOC but because I'm self-employed my income looks low because of all the deductions at the end of the year. Because of this, I can't get approved for much.

Question: If the owner agrees to carry the loan for a couple years then I go to a bank to refinance, will they require another down payment on the building? 

Currently working on a selling financing deal. Primarily, I manage STR's for other owners.

One of the buildings I manage, the owner and I are figuring out terms. 

I want insurance, taxes, and utilities to stay in the owners name. This will keep my payment to him the same, making things very simple. I’m just wondering if there’s a danger or conflict with that. For a little context, I pay him 3450 every month and rent it out for roughly 4450.

From the current owners perspective that might be weird, if he doesn’t have the title anymore and doesn’t know what the building it may seem strange for him to have insurance on the building. additionally, that may not protect me since I wouldn’t be the one holding insurance. Please advise. Thanks

Located in Minnesota

Not necessarily asking about collecting rent, but when your charge someone a fee for an application. What app, website, service has been your favorite?

How do you initially charge an application fee? You'll have to forgive me ignorance. I've had almost 1k tenants as a property manager using short term rentals but landlording is very new to me.

This is a two part question

First, what is your best way to avoid waisting time waiting on a perspective tenant who doesn’t show up?

Secondly, Is there a user friendly app or website that allows perspective tenants to submit a refundable "tour fee". Ie, they pay $50, if they show up they get it back. If they don’t they forfeit the payment. 

Thanks,

James Bartlett 

Rochester First Choice LLC

I'm looking to purchase one of the properties I manage. It's a four unit apartment building. I own two homes, my primary residence and an investment property. So I don't actually need to live here and wouldn't want to live here. All four units are rented until sometime next year. Although I'm sure frowned upon is it possible to get an FHA loan and just stay at my primary house?

Context: I currently manage 10 units. Out of those 10 I own one, a single family home. I just purchased this house this July which drained most of my savings as we did a conventional 25% down. The other 9 units I sublet on varies platforms like Airbnb, Vrbo, etc. I’ve had over 600 tenants in the past 3 years so pretty good grasp on managing tenants. This is what I do full time, and is my main source of income. 

Situation: I want to purchase a 4 unit a building I already manage and the owner is on board with doing a seller financing option. 3-5 year balloon. Not sure yet on a down payment amount. It may be 30k to 100k. Which I know, is a big difference. 

Problem: I'm out of cash. I just spent everything on this new home. Additionally, I may not qualify for a HELOC on my personal home. After calling the bank, my net income isn't high enough. Obviously, when you write off literally everything you can your net income goes down.

I pay 3450.00 a month for the 4 unit. I could afford to give an additional 1000/month if the owner would accept no down payment. But in his words, "I’m gonna be dead soon, I’m 75 and would like down payment money to go do something with my life. While I still have life to live."

I’m currently in the Army reserve, if that matters, maybe someone knows military friendly lenders more than I do?

Thanks for taking the time to read.