All Forum Posts by: Johnny Quilenderino

Kevin,

I have looked into seller financing and zero down options and still have not got a deal yet. All requests for zero financing were turned down. All seller financing options were too high to be a true deal. Unless you look out of the area or have plenty of hard cash those options are out picture in Hampton roads.

Good luck.

Johnny

Good morning BP,

I just got asked to buy home warranties for two MFR that I am about to buy. The warranty is for each respective "unit" and will cost approximately 2300 dollars annually. With the two properties I will have 7 units total. The houses are older and are for section 8 tenants.

Is it normal to have a SFR that is converted into a MFR get a home warranty like an apartment i.e. instead of the warranty for the whole house it is for each individual unit.

I plan on getting a home warranty just for the plumbing and electrical issues that can arise in older homes but just curious on the take of Home Warranty and can I shop around for better. Thank you in advance!

Very Respectfully,

Johnny

Natalie,

I hit him up with a personal email earlier with more of the details. Thank you for the reference!

Very respectfully,

Johnny

Good afternoon BP,

Anyone execute a 1031 exchange lately with a bridge loan? Just interested in the details. Planning to possibly execute one in Sep, and with our exchange we might be 50k short of the lenders requirement of 30k. 

Thank you.

Johnny

Mr. Mallon, 

So have you moved on any properties? My wife and I are moving on a couple but the Norfolk area is a little to pricey or dicey for us. We are looking at a 600k property with a nice rent roll but we must stop while we are ahead, the debt snowball we are creating needs to melt down a little before we pick up our next one!

Anyways good luck!

Johnny

I am buying MFRs but not in Norfolk. Currently the market is not saturated but "great" deals are "off the market" before they are even posted or they are asking for an unreasonable price because of the rental market in Norfolk is good, not great, but it is good enough for people to have high expectations on their possible sell. I am a buy and hold person. I might move into the Norfolk market via a 1031 exchange later in the year or I will stick to where I am buying now, just depends on what is still available. Good luck! Let us know what you get. I am interested to know what you fix up. I am coming back to the area in a couple years to retire.

Team, 

Thank you for your great input! I am definitely going to attempt this process in Sep. Houses in Boston are staying on the market for about three months before selling. We intend to place the house on the market in Jul and get a sell by Sep at the earliest. 

We will have only one hiccup, we have a lot of credit inquiries from our last two purchases. I had to shop around to find a good lender. Still was not the best deal but for the time frame associated with it I had to take it. I will have a lot of explaining to do for the lender, but if the lender sees through the chaos, looks at the rent roll, location of the new property, and our actual credit score we should be a shoe-in.

Now I might have to find a portfolio lender or bridge loan to capitalize on the deal I am attempting to work. If I clear the 1031 exchange, there is a possibility I am clearing 4k a month after expenses from the three purchases this year. Buy and hold has done well for me and it is time to cash in on other properties! Thank you for all the help. I will update the post as I commence this journey!!!

Thank you.

Good morning BP,

I am thinking about selling my Boston SFR for a MFR in Norfolk Va. A couple questions that I have are as follows:

When should I inform a QI that I intend to execute the exchange?

- We intend to place the house on the market in July.

Can I get a clause put into the contract, ie pending sale of Boston house all proceeds will be re-invested into the purchase of the said property? This is so I can at least have a house on contract until the Boston house sells.

Do I need to get pre-qualified for the buy just like a normal investment purchase?

How early in the process can steps be executed and can they be executed out of order?

Anything else I should be thinking about?

Thank you.

Good afternoon, just wondering who uses them for their LLC in virginia beach.

I am attempting to start my business and looking for suggestions. Thank you in advance.

Good afternoon BP,

I have a plan but I do not know if it passes the "smell" test. 50k in six months plan
House #1 Asking price 45k, Zestimate 85k.
-Caveats the home is foreclosed.
Step 1: Buy in cash
Step 2: Get renter in it (1000/Month)
Step 3: Refinance for 60k (I would expect to still be at a DSCR of over 1.25)
House #2 Asking price 49,900, Zestimate 135k.
Caveat this house will have to remain on the market for a at least 6 months (or I find something like it)
This house is also a foreclosure
Step 4: Buy in cash from refi in step 3
Step 5: Get a team of contractors in to clean, and fix what is needed to sell for 135k
Step 6: Sell low, as in place on the market for 120k but accept an offer for 110k
Step 7: Pay off Step 3 and go find another distressed home to fix.
Step 8: Make it rental if step 6 does not work (DSCR would be about 1.25 with this one too)

Deviation could be the following

Step 6: Could also be Refi for 102k
Step 7: Rent
Step 8: Buy two more foreclosures

Does this plan pass the smell test or am I off on my numbers?

I am about two weeks from step 1. I have to find money for closing for the first house.

There would be about two or three months in-between step 3 and 4 max.

Thank you for your time and patience. I appreciate everyone's help!!!

Very respectfully,
Johnny