All Forum Posts by: Johnoson Crutchfield

Yes 7.5 is what I’m being quoted on 30 years from a secondary lender.  The number of units is simply because of a desire for cash flow. I have some units cashflowing $50 a month on traditional 15 yr notes right now and I’ve got some units cashflowing $300 a month. And yes most of my properties are under 60k value. I’ve seen a lot of folks take their whole portfolio like mine and put it all on 30 years and then double their cash flow. But I’m thinking keeping most on 15 years would help me be sure to paydown the debt sooner. 

let me know if I can help. Definitely think there are ways to learn that are cheaper. 

Following up to this.  Insurance company paid within 2 weeks of the incident.  I sold the property for 8k to another guy who wanted to fix it up and rent it out.  Learned alot and I won't be so freaked out if this ever happens again.  Added this chapter to my book I'm working.  When property catches on fire.

I have a portfolio of a mix of 22 single family and multifamily properties and I am considering the following strategy.  The goal would be to diversify payoff times and to increase cash flow.  I am interested in feedback on this plan.  By the way, all of these properties are leveraged currently on 15 year portfolio loans with local banks that balloon in 5 years.   What I want to do is:

1) Keep all of the properties with a value under 50,000 on the same financing stated above, with a goal to pay them off in 10 years.  

2) Refinance all of the properties valued over 60,000 to 30 year fixed financing at at rate of 7.5%. These properties would be leveraged at 75% of LTV and include, 2 triplexes, 2 duplexes, and 5 single families (value $700,000). The total value of the portfolio is close to 2 million.

My goal would be to keep adding to this portfolio in several different markets.  The opinion of several investors in the market I invest in to keep things on the 15 year plan to paydown the debt faster, but I want to go to between 80-100 units (for cash flow purposes) and local banks are starting to cap me at current levels.  My thinking is that if I payoff some of the larger balances with the small banks they will allow me to borrow additional capital.   What do you all think? 

Also if this doesn't make sense please tell me, I'm still learning.

So I’ve got a eald and I need help getting it done. I’ve got a property under contract. It’s priced for 1,500,000. The units currently are grossing $22,000. Vacancy is 90%. Deal is in prime location. Probably is I can’t find the 300,000 banks want to have 20% down. Seller doesn’t want to finance any of it. The reason I think it’s a deal is because I have been able to get to him to agree to seller finance 1,400,000 for 3 months. In that time I’ve got to secure more permanent financing. How big of a risk am I taking?  100,000k is pretty much all of my business capital and this still is not 20% the banks want. I’m pretty sure the property will appraise for close to 2 million so there’s a lot of equity here. What are your ideas? Should I just back away and wait a few years?

@Migeul Obramowitz I’ve already got it under contract. No worries about anyone stealing it. More interested in someone helping me problem solve.

So I’ve got a deal deal and I need help getting it done. I’ve got a property under contract. It’s 65 units for 1,500,000. The units currently are grossing $22,000. Vacancy is 60/65 units occupied. Deal is in downtown Tupelo in prime location. Probably is I can’t find the 300,000 banks want to have 20% down. Seller doesn’t want to finance any of it. The reason I think it’s a deal is because I have been able to get to him to agree to seller finance 1,400,000 for 3 months. In that time I’ve got to secure more permanent financing. How big of a risk am I taking. 100,000k is pretty much all of my business capital and this still is not 20% the banks want. I’m pretty sure the property will appraise for close to 2 million so there’s a lot of equity here. What are your ideas? Should I just back away and wait a few years?

Everyone was safe. It’s insured. My tenants is ok staying in another apartment I have that is empty, and tomorrow I’ll file an insurance claim. 

I've been adding units so fast that I don't know what to do when a rental property catches on fire.  I have a house that has caught on fire and could use some moral support and some steps to take starting now.  total loss.

Yep.  I'm up to 34 units.  We are scheduling a meetup on October 24.  PM so we can chat.