All Forum Posts by: Jonathan Jones

I have started looking at DSCR loans. One place I spoke with would not do it for this property due to the rural location. Other middle Tennessee areas that we are trying to get into will meet their criteria.

I do have some DSCR questions if you are pretty familiar with them.

They were slow with their loan reinstatement letters. The first one they did had a 7 day window to close and we got it on day 5. They finally gave a longer reinstatement letter that allowed us to schedule and finish the closing.

I agree house hacking will be a great place to start. Remember fundamentals like choosing a desirable market and keeping some money in a highly liquid option as reserves like a high interest savings account that should be about 4-5% currently. Also, while living there, you may want to do some value add projects. Make sure they will get you a return on your investment. This last one is important. Make sure you can afford it even when the other portion(s) are not rented. Do not over-extend yourself and risk taking a large principle loss.

With all of that said, a househack gives you more control than most other options. You will likely be able to refinance in the next 2-3 years to a lower interest rate too.

I started purchasing real estate in March of 2023. I am a buy-and-hold investor primarily. I do need the deal to be at least cashflow even, but i don't mind playing the long game on the property. I have used most of my traditional financing cap with earlier purchases so now I'm using creative financing like seller financing and sub-to purchases to keep growing my portfolio.

I'm currently focusing in Tennessee on homes under $500,000. Ideally, a 3 bed 2 bath or more and creative finance must be an option.

For agents, wholesalers, and private lenders, I am willing to structure shared ownership/partnership deals so we all win together. Ex. A wholesaler has a property that requires $30,000 cost of entry. The deal is structured to pay 15k to seller, 3k in arrears on the loan, and 12k to the wholesaler. The wholesaler and I can create a partnership so the wholesaler will get 4k at closing and the remainder can be used as a contribution into the partnership. This will then allow the wholesaler a percentage of the monthly rent and equity to begin more wealth building.

Let me know if you have deals for us to review together or feel free to reach out to connect and network.

Investment Info:

Mobile home buy & hold investment.

Purchase price: $138,000
Cash invested: $16,500

We purchased this property subject to (Subto) the existing mortgage. We just closed on it. Now we will have to put in some rehab during to severe water damage and general updates. Then we will use for long term rental. It has extra land where we plan add another 1-3 rental units.

What made you interested in investing in this type of deal?

We are currently trying to acquire properties with consistent cashflow to give more flexibility for other investments that fluctuate more like STR.

How did you find this deal and how did you negotiate it?

It was posted in my Subto community and in an area I have some interest in so I contacted the wholesaler there.

How did you finance this deal?

Cash reserves

How did you add value to the deal?

We are about to begin rehab.

What was the outcome?

TBD as of 4/3/24

Lessons learned? Challenges?

1. Confirm everything - the initial rental estimate provided by the wholesaler seems to be an aggressive estimate. I like to use conservative estimations.

2. Even when the buyer, wholesaler, and transaction coordinator are all pulling the same direction, it does not mean the seller or seller's bank will cooperate in a timely manner even when it is in their best interest.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Yes, I used Heather Kiddoo for my transaction coordinator. I recommend her. She worked with my schedule for discussing the deal, and as the process got drug out longer, she continued pushing the parties to make sure everything made it to completion.