All Forum Posts by: John Friendas

 Using the lenders tab on Bigger Pockets: https://www.biggerpockets.com/business/finder/lenders

With private lenders you would likely benefit from a broker as there is a lot more flexibility in terms of certain rules and the rates you receive will vary widely. There are some loans like a DSCR loan which can help you get a loan regardless of debt/credit/income if you have the downpayment on a rent-ready property, where the rent has to cover more than your mortgage. There are builder loans for properties that need rehabbed as well.

And if at all possible try to get a conventional lender first as your interest rate and closing costs will be a lot cheaper. You may even be able to switch your situation requiring private money by either fixing the property first (lets say it has a couple electrical issues) or by having someone cosign and being able to get that better rate/closing costs. A lot of times you end up refinancing into conventional later anyway.

I have two options 6.625% 30 year or 6.15% 15 year

I want to invest aggressively in the near future on more properties

The loan is only $110k and the monthly payment for 15 year is $563 and $750

I will earn 2-3k a month in gross rental revenue

The property is in a declining population area

Recently rennovated, and all major things were relatively recently improved such as plumbing, the roof, a/c, electric, etc.

Will require a lot of management as it is rent by the room so I may switch to a normal rental after 10 years

I'm trying to find what will mathematically net me the most money in the long run. Considering opportunity cost of not affording more rentals vs paying much more in interest. I saw a lot of advice to do what feels comfortable but I feel like I want to find out which one will end with more net worth.

I bought and am wanting to get an appraisal for a single family home being used as a rooming house. It is zoned single family but since the previous owner is using it as a rooming house a few things look different that I am worried about the appraiser not passing:

Outside doors for each room with locks.

The only common area is the kitchen, no dining room, living room, etc.

The rooms consist of 5 bedrooms, 1 kitchen, and 2 bathrooms.

Each room has a bed and a small drawer which I am thinking of diassembling before the appraiser comes.

Would I have a problem with this? Is there anything I should do to help this pass. I intend to use it as a single family and it is a great deal. THe lender is a credit union and it is a conventional low rate loan.

 It would be multifamily, 760 credit score, and an investment property.

These midwestern states have great cashflow at some of the cheapest prices. (Wisconsin, Indiana, Ohio, Michigian).

Pick a more rural town/city, they are typically very safe. Rent by the room/multifamily properties will give you cashflow, the tradeof is more management. These places can still appreciate and you can check each city's popuplation growth or decline on https://worldpopulationreview.com/.  

On https://www.neighborhoodscout.com/ you can also check the neighborhood crime and the percentage of people who rent compared to owning. You will want to have an area with a higher % of renters. In addition to these you can find information about appreciation.

Many of the people recommending expensive properties are doing so because of appreciation. If you are just starting out, do not purchase properties that are expensive relative to you. Focus on cashflow and growth, earning money for more down payments on more properties. These types of properties can still appreciate an exceptional amount if you pick the right area. Later on in your investing journey the safety and low management of expensive, appreciating properties will become appealing.

I am trying to find the cheapest funding on a property I recently offered on. There is no active electric and where the breakers were taken out of the breaker box. Two of the kitchen cabinets were also cut in half. My electrician said that it just needed new breakers The property is liveable and rennovated apart from this.

What is the cheapest % interest dscr/hardmoney/rennovation loan I could get? And how do I roll this into a cheaper mortgage (my dti would be too bad for another conventional).

Maybe a lender would be able to consider the electric "working" with the proper inspection? The only issue appears to be the missing breakers and it being turned off by the bank. Thanks for the help!

 2nd property, I think I'm leaning towards not partnering as the conventional loan interest advantage doesn't seem worth splitting all the profits. Especially considering both of these partners are out of state.

 It seems like there is no catch, would they let me buy a property this month and a property the next month for instance if I have the 25% down+closing costs and can prove that it rents for a decent amount more than the mortgage?

 I could do it 2-3 based off cash savings. I have a long rennovation project I bought in the summer that I am currently working on and am looking to get a few turnkeys on top of that. I don't want to wait another 6 months to get more property through conventional.