All Forum Posts by: Jon Maroni

Thanks @Shane W. Chapin. Good luck finding those multi family deals. We haven't yet ventured into that territory but if you find good strategies for finding those deals please send any info you're willing to share. I don't really have any experience with creative financing measures, we've used our own funds for all of our properties and plan to continue doing so. Best of luck again. 

Hi @Shane W. Chapin congrats on getting close to closing your first deal in Rochester, and welcome to the market there. My wife and I have 4 SFR in the city and we've done conventional financing for each of them. For us the speed of acquiring properties hasn't been as major of a concern as some in the BP community so we've done our purchases with conventional financing. Our rate of acquisition has been 1-2 per calendar year. My main question would be how quickly are you able to save the money for your next deal out of your other income sources i.e. your pay or side hustles? For instance, how long would it take you to buy your next deal if you didn't seek creative financing?

Hello BP Community, 

My wife and I have been investing in the Rochester NY market for the past four years. We have 4 single family homes there and hope to acquire more in the near future. We purchased the first two when we lived in the area but in 2016 moved to Washington State, so we are landlords from a distance. All four properties are with a single management company that up until recently has been great to work with.

Recently there have been a variety of issues with repairs, certificate of occupancy inspections, and the accounting statements for each property so we are looking to make a change. 

Are there any management companies that you would personally recommend in Rochester NY? 

Also what should we consider as we transition companies? This is somewhat new territory for us and we would like it to go as smoothly as possible. 

@David Clinton III We have found the cost of properties to be much less in Rochester, thus less capital is needed to acquire properties. All of our homes were purchased for less than 85K and rent for around 1000-1300. We have considered getting into the local market (especially because of the option to house hack) but it just takes more capital to do so here. Plus we have some unique living circumstances (our housing is paid for because of my wife's job) and thus can't live in a home as a primary residence. BTW I read up about your company and it sounds really cool. I'd be interested in learning more if you're willing to share. 

Hello BP Community, 

My wife and I live in Spokane WA but own 4 SF rentals in Rochester NY. We purchased each with a traditional mortgage with 20% down. They are cash flowing nicely and our plan is to continue to acquire properties in Rochester. We used to live there and have our team assembled. We have been on pace to acquire about 1 property per year. 

We really want to accelerate our real estate investing and our portfolio (like many of you we have aspirations for early retirement) and are wondering what you might suggest next. Should we invest in muti-family properties to increase our cash flow, are there alternative financing options that we should pursue (we cannot really house hack since we can't live in our properties), what should we do to really step up our investing game? We feel like we are close to reaching a tipping point where financial independence could be a reality but need a little nudge to get there. 

Thanks for sharing your expertise. 

@Shane W. Chapin, welcome to BP! My wife and I live in Washington State but own 4 single family rentals in Rochester NY. When we bought them they were turnkey properties. We are focusing on acquiring 5 more SFR's in the area in the next 5 years. We are still relatively new investors (started in 2014) but we'd be happy to share what we know. PM me if you want to talk a little more shop.

My wife and I live in Spokane (ironically given your post) and our properties are in NY state. We use a property manager and have had a very good experience with them. Vetting is key, and you have to talk to local real estate investors about their experience with the management company. Fortunately for our first deal we were living in the area so we were able to do that work more easily. Now that we don't live there we take an annual trip out east to check on our properties, it is worth it every time.

 If you are looking for property managers in Spokane there are bunches of real estate investors on BP who have probably had experience with them. PM me and I can point you in the right direction. My first job here was as a real estate loan officer so I got to know the market fairly well but I know there are other people who know it better. 

Thanks so much for you input, my gut was telling me to wait and hold but I needed another opinion. Thanks BP community. 

Thanks for your thoughts John. 

Hi BP community. My wife and I are considering a cash out refinance of our first rental we purchased in 2014 in order to help us purchase an additional property, I'm Looking for advice. 

Here is what the mortgage on the property looks like and what it would look like if we chose to pull the trigger. We are looking at a refinance of the whole first mortgage. If you know of a lender that would do a second or HELOC on a rental pm to let me know.

Based on a market valuation the home is currently worth $105,000, we paid $74,000 for it. Of course we could order an appraisal and find out this isn't worth doing but lets go with it. 

Current Mortgage: 4.75% interest, $57,812 remaining balance, current payment (including taxes and insurance) is $651.48. The home is rented for $1350, minus property management expenses it gives us $563.52 per month (I haven't factored in other expenses, trying to keep this post simple). 

Potential Refinanced Mortgage (we've gotten quoted info from our normal lender): 5.625% interest,  $84,000 balance (so lets say we get $25,000 cash out), payment goes to $816.23 so cash flow would decrease to $398.77 and would allow us to purchase an additional property that is my estimation could make up for the lost cash flow. 

What would you do?