All Forum Posts by: James Lanier

From a Buy and Hold standpoint if cash flow is $500, has indicators for future appreciation, and I can pull on the equity in the future to scale I'm buying it. That does not mean I won't be taking full advantage of this soon to come buyer advantage. I'm currently just preparing for when the market goes down and I'm going to target small multi-family properties that landlords don't want to manage anymore. I'll also be looking for value add into my property purchase to add some sweat equity into the deal.   

I don't know how they lend out in CA, but a 2–4 unit property is a multi-family just smaller. I'm buy and hold investor not concerned with mortgage points unless the competition is quoting an extremely better lending product. I'm not looking to FHA, need to pull on the equity within two years to scale.

I did further research, and it seems with the doom and gloom rhetoric about the soon to come real estate market is beginning to make lenders more cautious with lending, so the 10% down is not available without occupying the property. So, we'll be looking to most likely do 20-25% down conventional on a Multi-Family Property for the first acquisition. 

 Yes, 

I own 7 properties currently.

Hello, 

Opening a Real Estate Investing Company in January and we are looking for a lender able to allow us to put 10% down on a multi-family (2-4 units) and 25% down on a single family within the same time frame. Any recommendations or references. 

Investment Info:

Single-family residence buy & hold investment in Pawtucket.

Purchase price: $243,000
Cash invested: $100,000

Turned a 2 bedroom and 1 bath into a 3 bedroom 2 bath. Renting it for $2,650 and the mortgage is $1453. I plan to cash out refinance in December. Somewhat a modified BRRRR supplemented also by my 9-5 career. I ended up only renting in for $2,650, and after the refinance (getting between $80,00-$100,000 back) my cash flow will decrease to between ($750-$900).

What made you interested in investing in this type of deal?

I've never invested in a single-family investment property. I wanted to gain the experience of purchasing and managing one.

How did you find this deal and how did you negotiate it?

I found the deal walking my dog around the neighborhood. I noticed it as an eyesore and saw it was recently listed for sale through the redfin app. I low balled at 225k with an escalation clause up to 245k.

How did you finance this deal?

I financed the deal with a HELOC that I have from my primary residence and used my W-2 Income/ Credit Cards to finance the renovation.

How did you add value to the deal?

I added a bedroom and bathroom to the property. I also finished the basement. The whole house was updated and modernized.

What was the outcome?

$2,650 for rent. $1,453 mortgage currently. Approximately 100k total spent. Between 80k-100k for the Cash out Refinance.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Dolan O' Rourke Real Estate (RI and MA)

Cash out refinance is the main way I’ve raised money for my down payments and renovations. 

Here is my personal rule:

1) If the property will still cash flow after the refinance 

2) If the cash is being invested into an asset

3) The new asset cash flow has to exceed the difference between the old mortgage and new mortgage 

If all three rules are satisfied. I cash out refinance. 

Hi, 

I will soon be closing on a vacation home in Naples, FL. The HOA is more friendly towards mid-term rentals. Is there anywhere else I should list my property other than Airbnb and VRBO.

Thank you, 

James 

Hi, 

I believe it is based on your goals too. For example, if you want to get into a another property relatively sooner I would do 25% down. More flexible with leveraging it and higher cash flow to save. If you are not really concerned with the velocity of your money then do 10% down. 

Good luck! 

Thank you so much for the referral! 

Under contract on a 2 bedroom 2 bathroom condo in Naples, FL that needs a full renovation. Who’s the best contractor for this out of state investor?!