All Forum Posts by: Jeremy England

 Youre right about not relying on just a zillow search, but you can easily get sufficient comps by viewing teh properties that actually sold within a specified area and do comps that way.  Don't rely on zestimate, but get the recently sold from zillow, filter to last 90 days.  Then do some math.  

Add/subjtract for condition, bathrooms, bedrooms, size differences etc

You can usually get a pretty close estimate yourself on comps.  

Once you have what the ARV is then you can begin subtracting costs. Dont forget financing costs, closing costs, prepaids, etc etc

Roofing costs are VERY high right now.  Like twice as much as they were 10 years ago.  

Unless you ahve the time and money to direct market to sellers, I'd say get some relationships with some wholesalers.  

I bought one from a wholesaler recently, he wanted x, i wanted y, we settled on a price.  It was more in his favor than mine, and I spent a little more on the project than i anticipated because of roofing costs and a couple surprises.  But I am getting 1pct of rents and when I refi it will be a true brrrr deal.  I m currently awaiting seasoning req to be up in feb

What's troubling you with comps?  

I actually prefer rentals near the bases.  Far west side of town.  Steady flow of tenants, all with regular paychecks and clean backgrounds.  

Let me know if i can help you out.  I'm not a realtor, but an investor myself

Depends.

If you bought cash, you can get delayed financing but only up to the amount you paid in to purchaes the property plus closing or 75% LTV, WHICHEVER IS LESS No rehab costs will be included in the loan.

That's fannie mae guidelines

Or you can get a commercial loan, but proabably only up to 70% LTV, 20 year amoritization, 5 year baloon. So your cashflows are because its on a 20 year vs a 30 year

Or, another poster has recommended this: Get a loan from your LLC to buy the property, then you can refinance immediately conventionally. Just do a search for seasoning and you'll see the process. I'm not 100pc on it.

I would look for a private lender.  Givem 6-8pct.  Someone would probably be glad to lend 41k at that rate out of an SDIRA.  Plus its alot easier

Hey matt, I'm with the consensus.  The totality of the circumstance would dicate.  High score, high references, high bank balance, probably good to go.

I would probably require double deposit from those folks though.  

Ahh i see, you did a commercial loan.  So let me ask you, what kind of terms did they offer.  20 years at 6% or ?

Good for you taking action

I'm not sure about that lender telling you there will be no seasoning.  I paid cash, and paid for the reno.  Got hit with a seasoning req

The only option earlier was delayed financing which will be limited to what you paid for the property plus closing costs, OR 75% whichever one is LESS.  

Meaning if you paid 30k, then paid 4k in closing.  You can only refi for 34k until the seasoning period is over

Its not as straight forward as you think.  If you buy cash, then all you can refi for is the purchase price and the closing cost.  The cash you used to rehab comes out of your pocket and you do not get that back on the refi.  

If you purchase with a HML then the bank won't refi you out til after seasoning. Thse are with traditional 30 years mortgages

If you get a commercial 15 yr or 20 yr mtg then the rules are different and you can refi out quicker.  

Now to answer your question, you probably CAN refi out of a traditional mortgag but the question is can you afford it.  

Origination fees, points, prepaids, etc  

sounds costly

I wouldn't subscribe.  You can get better info for free.  If you are looking for accurate rents then just look at zillow and other sites for homes in the area that are listed for rent.  

I know if I had relied on rentometer alone I would be undercharging rents by like 25%

 That sounds a little shady.  If it is legal, I'm not sure how long it will be.