All Forum Posts by: John O'Leary

Hey Matthew!

Welcome to Orlando! I'd be happy to make any introductions to help build your team here in area, and plug you in to any of the meetups. 

Is this for a DSCR loan?

Most lenders will cash out at 75-80% (max) on the repaired value with three months seasoning. So if you buy distressed and build in some additional equity via the rehab you can cash out when securing the long term debt. The cash you receive from a cash-out refinance is not considered taxable income because it’s essentially a loan. You’re borrowing against the equity in your home, so the money is not income but rather loan proceeds that you’ll need to repay.

The pros of a cash-out refinance for most investors include the ability to build their portfolio and scale their real estate investment business.The cons could be trading a lower interest rate for a higher one and increasing your loan-to-value (LTV) ratio.

There are value add products for multi-family 5-20 units that do not use DTI to qualify. Build in some equity via rehab and then refinance into a DSCR loan.

CashGeeks is a good option for off market deals. They are also active in the JAXREIA.

The top notch call center like Lamassu charge $8-20K a month, but typically work with shops doing 10+ deals a month. I'd consider the leads better than warm. These services are transferring live owners who have agreed to a certain % of the zestimate. 

Congrats on being under contract! Dealing with older homes, especially those from the early 1900s, can indeed be challenging, especially for a first-time investor. Given the issues you've outlined, it's understandable why you could feel anxious. A leak causing water to flow under the sub-floor and into the crawlspace can lead to significant structural issues if not addressed promptly, and you’d likely need a plumber and possibly a contractor to assess and fix the damage. Replacing cast-iron piping can be costly and labor-intensive, and while the mixed plumbing indicates previous updates, you might want to get an estimate from a plumber to understand the full scope and cost of replacing all cast-iron pipes with PVC. The inability to scope the sewer line is concerning, as you mentioned, there could be blockages or other issues that need attention. A proper sewer inspection is critical to avoid future plumbing disasters. Cracked roof joists are a serious structural concern, and having a structural engineer or a contractor experienced with older homes inspect the roof structure is essential. They can provide a more accurate assessment and potential repair costs.

When dealing with homes from the early 1900s, it's prudent to overestimate your renovation budget to account for unexpected issues. Ensure that a structural engineer inspects critical areas like the roof and foundation, as their expertise can help you understand the true condition of the home and potential repair costs. As a first-time investor, you might find it easier to start with properties built after 1975, as building codes improved significantly around this time, particularly regarding wiring and plumbing, which can reduce the number of surprises and costly repairs. Ultimately, it's crucial to weigh the potential costs and headaches against the potential return on investment. If the issues seem overwhelming and beyond your comfort level, it might be wise to pass on this property and look for a newer one that aligns better with your experience and budget. Good luck with your decision, and feel free to ask more questions! GL

Partnerships = Rocket ships. Sent a PM

If you're seeking off-market deals and ok paying an assignment fee, checking out investorlift.com. Tools like BatchLeads and PropStream are great for direct-to-seller strategies, but keep in mind that they come with marketing costs depending on the method you choose, such as direct mail, cold calling, or texting and have to have good nurture campaigns. 

Welcome to BP!