All Forum Posts by: Jesse Waters

I bought a quad in a C area, not a high crime area, just working class.  We renovated the building upon purchase; new siding, new roof, new windows, new hand-rails on each unit, the works, plus a new AC on one unit.  After the work was done, I was hit hard with move-outs, evictions and vacancies.  Some of the tenants though that I would raise the rents to pay for all the work.  Truth be told, the property was a good deal when I bought it, and I got the seller to pay for most of the work, apparently he really wanted to sell.

When we were trying to place new tenants, we were having trouble getting any interest.  We advertised on multiple web-sites, had a big sign up by the high way, nothing.  We even offered 1/2 month off discounts.  Nothing.  We then raised the rents about $40 a month, and with in a week all my vacancies were gone. 

My take away was that even though it might not be the nicest part of town, people still have their pride, and if the price sounds too good to be true, they will not even look.  Had I know that raising the rent was the answer, I would have tried that first.  Since then, we haven't had any issues, and I have encouraged the other owners on the block (all quads on the street) to do the same thing.

25% cash on cash for my multi family properties, 13-15% COC for single family. I am not including mortgage pay down, value appreciation, tax depreciation etc. With those factors included it gets upward of 45-50%

I gave Home Path a look, seems pretty straight forward.  I'm out of the country, so I'll call their suggested lender next week when I get back to the states.  Seems like it might be a good way to go.

@J Martin

Thanks for the reply.

No issues with my credit score, or DTI. I clear the hurdles they throw my way, 6 months reserve cash, DTI is good, Credit score (770-ish). Most of my debt is real estate and cash flowing.

I have been doing all my investing through conventional financing/lending.  We had to go to 30% on my 5th property.  The lender I had been using was more than happy to loan, and is still more than willing to do business with me.  They said part of the high DP is to get around some Fannie rules, the other part is to allow the estimated rents to be applied to my income for under-writing.  

I'll give home-path a look and see what I can come up with through them.  

First thing I would do, before you buy something is get to know your area really well and analyze a few properties.  At least where I live, when you buy a single family for investment the taxes go through the roof.  My first place jumped from $200 a year before I bought it to $1300 a year as soon as I closed.

Make sure that all the numbers work out, over plan your expenses, under estimate the rent, and use at least 10% for vacancy.  I have one place that has had 10 days vacancy in 4 years, and one that just took a 3 month vacancy hit. 

When it comes to buying, yes, you just start. If you are getting something that is listed on the MLS, get a Realtor, free to you. Their commission comes from the seller. If you are using a bank for financing, then you will most likely have to get an inspection done as well as an appraisal.

If I were you, I would find a good local property manager and ask them some questions.  They are usually very experienced dealing with investor/owners and fairly familiar with the purchase process.  I doubt that one would mind if you offered to pick his brain over coffee or lunch.

Best of luck.

Been investing a while, but new to BP.

I am looking for another property, I don't have a preference if its single family or a quad.  Both fit into my strategy.  My current dilemma  is that every bank & lender that I have spoken with wants 30% down.  I understand their position on wanting to make sure that I have some skin in the game, but this has severely slowed down my rate of purchase.

With the exception of a few ups and downs and a little learning curve, everything that I have purchased so far is cash flowing well.  Just trying to figure a way around high down payments, or find lenders who are open to lower DP's, ie 10-20%.

Thanks,

Jesse

A little late to this thread, but new to BP. I am in Aiken and actively investing. Mostly SFH & Quads. I am considering making a venture in to fix-n-flips. Always open for discussion on just about anything and looking to share knowledge & perhaps partner up on some deals.

Alexis, I am an investor in Aiken, and would be glad to share what knowledge that I can with you.

Hello All.  

I have been investing in real estate for a few years now and recently came across BP.  So far I have enjoyed reading everyone's experiences and learning from them as well.   

To give some background on my self; I became an accidental landlord in 2010 when I couldn't sell my town house in Newport News, VA before moving home to SC. Since then we have gotten two 4-plex's and another single family house. For the most part they have done well with the usual issues.

I am looking to expand on my holdings and venture further out as a REI. Currently looking at a few properties to fix-n-flip to raise some funds and looking for good deals that I can get on owner finance, since banks seem to want 30% down, which is good for equity and cash flow, but limiting when it comes to purchases.

Would love to get linked up with other investors in Aiken, Augusta, Lexington, Columbia and West Columbia (where my quads are).  I am always open to partnering on a deal and learning from those with more experience.

Hoping to network with like-minded investors and learn something in the process.

Regards,

Jesse M. Waters

Aiken, SC