All Forum Posts by: Jordan Jones

@Matt Nico no problem! I hope it works out.

I have a W2 job. I have a primary residence that I house hacked until this past January, and 3 SFRs. All my loans are 20% down conventional. I was looking into portfolio lenders because I was told (erroneously) a person could only carry four conventional mortgages at once. At that time, I was about to be at four. So that's what prompted me to start looking into portfolio lenders. However, I spoke with my mortgage broker and he said he could get me 10 mortgages. So I ended up just doing conventional. The interest rates and costs are lower. 

You are right; I will eventually hit a wall. At that point I'll switch over to a portfolio lender who lends based on DSCR. Or at least that's the plan :)

@Matt Nico, I had looked at Visio Lending. From what I remember, they were looking for a DSCR ratio of 1.2, but their rates and appraisal fees were higher. I think they also wanted to see a certain amount of reserves as well. There have been quite a few posts on these boards about their services. If you search the forums you can find all kinds of feedback discussing the good and bad. I'm sure there are plenty of other options as well.

I personally didn't wind up using them because I am still able to get conventional loans with better terms. But I would definitely consider using them in the future as I continue to grow my portfolio. Good luck! 

Jordan Jones

Hi @Brent Salazar. I'm not 100% sure but I think there are portfolio lenders who will lend to you based on your portfolio cash flow looking at DSCR rather than traditional criteria. Interest rates are higher, though. I looked into it before but have not personally used one. Also, read Brandon Turner's book "The Book on Investing in Real Estate with No (and Low) Money Down." It explains seller financing and looking for / sourcing seller financed deals. May be helpful. Good luck!

Hi Anthony,

Good luck on your real estate journey! I buy SFRs. In addition to all the great things that have already been said, some important things I personally look for are strong cash flow and good layouts. I try to get a 3/2 or 3/1 with a good layout that will be easy to sell later. I also try to get into decent school districts. But strong cash flow is always my top priority. Good luck!

Jordan

Nice! Good luck. I have properties in Lincoln Park and Allen Park. If you ever want to talk about those markets or have any other questions, don't hesitate to reach out! 

Hi Nader,

Hope all is well! I have no personal experience in Dearborn Heights but my property manager told me she manages some properties there that do very well. She said they cash flow well and rent easily. I live right next to Melvindale; schools are bad and I don't think you will see much long term appreciation there. That's just my thought, though. 

I have heard really good things about Redford, but again, I have no personal experience there. I saw a few posts about Redford on bigger pockets actually; you can search for them read them. Lots of great info. Good luck!

Hi @Brittany Lewis. I'm in Michigan. I've had really good luck in the downriver communities. Solid blue collar tenants and good cash flow, plus it's been appreciating the last couple of years. It's getting tight but you could probably find something right around your price point in a decent area if you are patient and look really hard. Good luck!

Hi @Deniqua Antoine. Good luck on your journey! I'm fairly new as well (about 15 months in) but I wish I had a better grasp of the finance side of it on my first deal. I own 3 SFRs I did conventional 20% down on all three. My first deal I have somewhat of a high interest rate which hurts my cash flow. I didn't shop around for financing. Also, the closing costs wound up being really high, affecting my COC return. I still ended up with an okay deal (I'm cash flow positive ~$250/month and the property is appreciating), but if I'd have done a better job on the front end it could have been a great deal. My next two deals both cash flow better, and better COC returns. Learning experience :)

Good luck!

Hi all, 

Hi @Kieondre Woody. I own 3 SFRs downriver. 2 in Lincoln Park 1 in Allen Park. I've only been doing it for a little over a year (started 2/2019). So far my tenants have been great. Solid, blue collar people who are responsible and take great care of the houses. Good cash flow. Taxes are a little higher in Wayne County. As a couple other people mentioned, the neighborhood is key. The downriver communities vary drastically, sometimes from street-to-street. Also, Allen Park North of Southfield Freeway is Melvindale School District. South of of the Freeway is Allen Park Schools, which are much better and one of the stronger districts in Wayne County.

I find it's getting tight, though. Prices have really increased significantly the past couple of years. It's getting more and more difficult to find a good deal downriver, in my opinion. But they are still out there. Good luck! Feel free to reach out if you have any other questions.

Jordan

Thanks everyone for all the great info!